### Question
How does Tax Based on Income From Sources Within or Without the United States define qualified tax?


### Answer
Under *26 U.S.C. § 901*, **qualified tax** is defined as:

> a tax paid to a foreign country (other than the foreign country referred to in subparagraph (A)) if—


(i) the dividend to which such tax is attributable is subject to taxation on a net basis by the country referred to in subparagraph (A), and


(ii) such country allows a credit against its net basis tax for the full amount of the tax paid to such other foreign country

#### Citation:
  - *26 U.S.C. § 901*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART III-INCOME FROM SOURCES WITHOUT THE UNITED STATES > Subpart A-Foreign Tax Credit**

