1. A tax that is applied by a jurisdiction on foreign income when a foreign tax credit is available under the tax laws of another jurisdiction.
2. A tax imposed by a state on an estate distribution that is not actually paid when a federal tax is paid on the estate proceeds. The state receives a portion of the federal estate tax receipts.
Related information about soak-up tax:
- Soak-Up Tax Law & Legal Definition
SOAK-UP TAX is a tax or levy which is conditioned on the availability of a foreign tax credit in another country. A soak-up tax arises when a foreign tax would not ...
- Publication 514 (2011), Foreign Tax Credit for Individuals
A tax is a soak-up tax to the extent that liability for it depends on the ... However, if the foreign country imposes a soak-up tax in lieu of an income tax, the amount ...
- What Foreign Taxes Qualify for the Credit?
A tax is a soak-up tax to the extent that liability for it depends on the ... A soak-up tax (discussed earlier) generally does not qualify as a tax in lieu of an income ...
- What is soak-up tax? definition and meaning
Definition of soak-up tax: A tax that is applied by a jurisdiction on foreign income when a foreign tax credit is available under the tax laws of another jurisdiction.
- Making Sense of Your State's Inheritance and Estate Taxes - For ...
A pick-up or soak-up tax which means your estate doesn't actually owe any additional money to pay that tax, even though a state estate tax return likely needs to ...
- Chapter 5 Foreign Tax Credit p.302
§1.901-2(c) specifies that a “soak-up” tax is not creditable – i.e., a tax which is ... What is the statutory authority for this soak-up tax/no FTC tax regulation?
- The Minnesota Estate Tax - Minnesota House of Representatives
“soak-up” tax equal to the credit allowed under federal estate tax for state death taxes. As a pickup tax, the Minnesota tax imposed no additional tax burden on ...
- Humberto Pacheco A., M.C.L., Pacheco Coto
... Cambridge University Press Cartels Project, 2008 “Costa Rica's Soak-up Tax Provision”, Tax Notes International, (co-authored with Diego Salto, Ph.D ); 2007 ...