Does South Carolina allow a credit for taxes paid to another country?
A. South Carolina allows a credit against taxes paid to another state on income that is taxed in South Carolina and another state. Since the credit is not specifically limited to a tax paid to a state of the United States, the credit is allowed for taxes paid to political entities equivalent to a state which are located outside the borders of the United States. An example of tax paid to a political entity equivalent to a state is a Canadian province. A tax paid to another country, such as Italy, would be equivalent to a tax paid to the United States, not a state, and would not be allowed the credit. Puerto Rico is not considered a state for the purposes of this credit. See Code Section 12-6-3400, Commission Decision I-D-288, and Opinion No. 3804.
http://www.sctax.org/Tax+Information/Individual+Income+Tax/indfaq.htm#TaxCredits A. South Carolina allows a credit against taxes paid to another state on income that is taxed in South Carolina and another state. Since the credit is not specifically limited to a tax paid to a state of the United States, the credit is allowed for taxes paid to political entities equivalent to a state which are located outside the borders of the United States. An example of tax paid to a political entity equivalent to a state is a Canadian province. A tax paid to another country, such as Italy, would be equivalent to a tax paid to the United States, not a state, and would not be allowed the credit. See Code Section 12-6-3400, Commission Decision I-D-288, and Opinion No. 3804…” Here’s the Code Section: SECTION 12-6-3400. Credit for income tax paid by South Carolina resident to another state. http://www.scstatehouse.net/code/t12c006.htm …”(A)(1) Resident individuals are allowed a credit against the taxe
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