Timor-Leste

Foreign tax credits

A resident taxpayer is entitled to a credit for any foreign income tax paid in respect of foreign-source income. The foreign tax credit is calculated separately for each foreign country from which income is derived by a taxpayer. The value of such tax credits is limited to the value of the Timor-Leste income tax payable on that income. There is no deduction or carryforward of any excess foreign tax credit.