{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-332.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-332.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-332.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-332.1.html"}],"law_id":77703,"edition_id":1,"section_id":77703,"structure_id":14016,"section_number":"58.1-332.1","catch_line":"Credit for taxes paid to a foreign country on retirement income","history":"1998, c. 292.","full_text":"A\n\nWhenever a Virginia resident has become liable to a foreign country for income tax paid on any pension or retirement income to the extent that such income is included in federal adjusted gross income for the taxable year, derived from foreign sources as a result of past employment in a foreign country and subject to taxation under this chapter, the amount of such tax payable by him shall, upon proof of such payment, be credited on the taxpayer’s return with the income tax so paid to the foreign country. The credit allowable under this section shall not exceed: (i) such proportion of the income tax otherwise payable by him under this chapter as his income upon which the tax imposed by the foreign country was computed bears to his Virginia taxable income upon which the tax imposed by this Commonwealth was computed or (ii) the income tax otherwise payable under this chapter, in the event that the income upon which the tax imposed by the foreign country is computed is less than the Virginia taxable income upon which the tax imposed by this Commonwealth is computed.B\n\nFor purposes of determining this credit, the foreign currency must be translated into United States dollars using the prevailing rate of exchange which most nearly reflects the value of the foreign currency at the time the taxes were actually paid to the foreign country.C\n\nAs used in this section, a foreign country shall include all possessions of the United States. Any foreign country which does not qualify for the federal foreign tax credit under § 901(j) of the Internal Revenue Code will also be disqualified for the credit allowed under this section.","order_by":null,"text":{"0":{"id":278716,"text":"Whenever a Virginia resident has become liable to a foreign country for income tax paid on any pension or retirement income to the extent that such income is included in federal adjusted gross income for the taxable year, derived from foreign sources as a result of past employment in a foreign country and subject to taxation under this chapter, the amount of such tax payable by him shall, upon proof of such payment, be credited on the taxpayer’s return with the income tax so paid to the foreign country. The credit allowable under this section shall not exceed: (i) such proportion of the income tax otherwise payable by him under this chapter as his income upon which the tax imposed by the foreign country was computed bears to his Virginia taxable income upon which the tax imposed by this Commonwealth was computed or (ii) the income tax otherwise payable under this chapter, in the event that the income upon which the tax imposed by the foreign country is computed is less than the Virginia taxable income upon which the tax imposed by this Commonwealth is computed.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":278717,"text":"For purposes of determining this credit, the foreign currency must be translated into United States dollars using the prevailing rate of exchange which most nearly reflects the value of the foreign currency at the time the taxes were actually paid to the foreign country.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":278718,"text":"As used in this section, a foreign country shall include all possessions of the United States. Any foreign country which does not qualify for the federal foreign tax credit under § 901(j) of the Internal Revenue Code will also be disqualified for the credit allowed under this section.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":14016,"edition_id":1,"name":"Tax Credits for Individuals","identifier":"3","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:46:37","date_modified":"2026-06-26 03:46:37","permalink":{"id":254153,"object_type":"structure","relational_id":14016,"identifier":"3","token":"58.1\/I\/3\/3","url":"\/58.1\/I\/3\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 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This law was first created in 1998. The record of its establishment is cataloged in chapter 292<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":65718,"section_number":"58.1-332.2","catch_line":"(Applicable for taxable years beginning on or after January 1, 2007) Definition of income tax","order_by":null,"url":"\/58.1-332.2\/"}],"refers_to":false,"permalink":{"id":254167,"object_type":"law","relational_id":77703,"identifier":"58.1-332.1","token":"58.1\/I\/3\/3\/58.1-332.1","url":"\/58.1-332.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-332.1\/","token":"58.1\/I\/3\/3\/58.1-332.1","dublin_core":{"Title":"Credit for taxes paid to a foreign country on retirement income","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-332.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Whenever a Virginia resident<\/span> has become liable to a foreign country for income tax paid on any pension or retirement income to the extent that such income is included in federal adjusted gross income for the taxable year, derived from foreign sources as a result of past employment in a foreign country and subject to taxation under this chapter, the amount of such tax payable by him shall, upon proof of such payment, be credited on the taxpayer<\/span>’s return with the income tax so paid to the foreign country. The credit allowable under this section shall not exceed: (i) such proportion of the income tax otherwise payable by him under this chapter as his income upon which the tax imposed by the foreign country was computed bears to his Virginia taxable income upon which the tax imposed by this Commonwealth was computed or (ii) the income tax otherwise payable under this chapter, in the event that the income upon which the tax imposed by the foreign country is computed is less than the Virginia taxable income upon which the tax imposed by this Commonwealth is computed. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> For purposes of determining this credit, the foreign currency must be translated into United States dollars using the prevailing rate of exchange which most nearly reflects the value of the foreign currency at the time the taxes were actually paid to the foreign country. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> As used in this section, a foreign country shall include all possessions<\/span> of the United States. Any foreign country which does not qualify for the federal foreign tax credit under § 901(j) of the Internal Revenue Code will also be disqualified for the credit allowed under this section. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nCREDIT FOR TAXES PAID TO A FOREIGN COUNTRY ON RETIREMENT INCOME (\u00a7 58.1-332.1)\n\nA. Whenever a Virginia resident has become liable to a foreign country for\nincome tax paid on any pension or retirement income to the extent that such\nincome is included in federal adjusted gross income for the taxable year,\nderived from foreign sources as a result of past employment in a foreign country\nand subject to taxation under this chapter, the amount of such tax payable by\nhim shall, upon proof of such payment, be credited on the taxpayer’s\nreturn with the income tax so paid to the foreign country. The credit allowable\nunder this section shall not exceed: (i) such proportion of the income tax\notherwise payable by him under this chapter as his income upon which the tax\nimposed by the foreign country was computed bears to his Virginia taxable income\nupon which the tax imposed by this Commonwealth was computed or (ii) the income\ntax otherwise payable under this chapter, in the event that the income upon\nwhich the tax imposed by the foreign country is computed is less than the\nVirginia taxable income upon which the tax imposed by this Commonwealth is\ncomputed.\n\nB. For purposes of determining this credit, the foreign currency must be\ntranslated into United States dollars using the prevailing rate of exchange\nwhich most nearly reflects the value of the foreign currency at the time the\ntaxes were actually paid to the foreign country.\n\nC. As used in this section, a foreign country shall include all possessions of\nthe United States. Any foreign country which does not qualify for the federal\nforeign tax credit under § 901(j) of the Internal Revenue Code will also be\ndisqualified for the credit allowed under this section.\n\nHISTORY: 1998, c. 292.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}