Can I claim a Foreign Tax Credit for taxes paid to a country the U.S. doesn’t have a tax treaty with?

Yes, the Foreign Tax Credit does not require a tax treaty between the U.S. and the country where you paid tax. The FTC is a unilateral provision of the Internal Revenue Code (Section 901) that allows you to credit qualifying foreign income taxes against your U.S. tax, regardless of whether a bilateral treaty exists.

How the FTC and tax treaties work independently:

This means:

• No treaty country (e.g., Brazil, Vietnam, Argentina, Singapore): You can still claim every dollar of qualifying foreign income tax on Form 1116
• Treaty country (e.g., UK, Germany, Canada): The treaty may reduce foreign withholding rates, but the FTC itself does not depend on the treaty
• Both can apply: In treaty countries, the treaty may lower foreign tax at the source, and you credit whatever remains

What matters for the FTC (with or without a treaty):

• The foreign tax must be a compulsory income tax (not VAT, social security, or property tax)
• The tax must be imposed on you (not a fee you chose to pay)
• You must have foreign-source income in the relevant FTC category
• You report on Form 1116 using the same rules regardless of treaty status

Where treaties do help separately:

• Lower withholding rates on dividends, interest, and royalties (e.g., 15% instead of 30%)
• Tie-breaker rules for tax residency when both countries claim you
• Social security coordination through totalization agreements (separate from income tax treaties)
• Pension relief in countries with specific pension articles (e.g., U.S.-UK treaty)

If you live in a country without a U.S. tax treaty, the FTC is your primary tool for preventing double taxation. For help determining which foreign taxes qualify, see our Foreign Tax Credit Guide.