Foreign tax credit

The foreign tax credit (FTC) is how credit-method countries prevent double taxation: tax paid at source offsets tax owed at home, generally capped at the home tax on that income. Two Law 7582 wrinkles: Türkiye denies any credit on the exempt income (foreign withholding becomes a final cost), and US citizens get no FTC benefit from the regime either — zero Turkish tax paid means nothing to credit against the US bill.