Foreign Tax Credit (FTC) relief is available to a Nigerian company that:
AHas paid foreign tax on foreign-source incomeCORRECT
BIs loss-making
CIs unregistered for VAT
DIs exempt
CITNCompany Taxation
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Why the answer is A, and why the others tempt you.
Where foreign-source income has been taxed abroad and is also taxed in Nigeria, FTC (treaty or unilateral) avoids double taxation.
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