---
title: "What is a Foreign Tax Credit?"
description: "A foreign tax credit prevents double taxation (taxation in both Australia and New Zealand) of the same income. It allows you to credit the tax paid overseas (in Australia) against your tax liability at home (in New Zealand). The credit acts like a deduction on your local taxes because you've already paid tax on the investment in Australia."
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# What is a Foreign Tax Credit?

A foreign tax credit prevents double taxation (taxation in both Australia and New Zealand) of the same income. It allows you to credit the tax paid overseas (in Australia) against your tax liability at home (in New Zealand). The credit acts like a deduction on your local taxes because you've already paid tax on the investment in Australia.

This is not tax advice. We recommend you seek your own advice from a tax professional.