Document Number
82-19
Tax Type
Individual Income Tax
Description
Foreign tax paid on foreign source dividends
Topic
Credits
Date Issued
03-12-1982
March 12, 1982


Re: Request for Ruling
Individual Income Tax


Dear *****************

Reference is made to your December 16, 1981, letter regarding the outstanding assessment for 1980 additional Virginia individual income tax resulting from the department's denial of the credit taken on line 17(d) of your return for foreign tax paid on foreign source dividends.

Virginia Code § 58-151.013 provides that the Virginia taxable income of a resident individual means federal adjusted gross income for the taxable year with additions, subtractions, deductions and other modifications. Virginia law does not however, have any provisions to allow a tax credit for foreign tax paid on foreign source dividends; therefore, the department had no alternative other than to deny the credit taken on your return and issue its assessment. Payment of the assessment should therefore be made at this time.

For your information, legislation has been introduced in previous years to allow a credit for tax paid to a foreign country; however, such legislation has failed to passed.

Sincerely,




W. H. Forst
State Tax Commissioner



Rulings of the Tax Commissioner

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