Overspill
Summary of Overspill
Taxes paid by a firm to a foreign government beyond the amount which can be offset in the home country by means of foreign tax credits or other double taxation relief. For example, if a firm paid one million dollars in taxes to country A, but was able to receive a tax credit of only $700,000 in its home country because of a limitation on the amount of foreign tax credits which can be applied, then an overspill of $300,000 would occur.
(Main Author: William J. Miller)
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