March 7, 1980

You ask whether you are entitled to a credit on your Massachusetts resident income taxes for income taxes paid to South Africa.

You own shares of a South African company represented by American depository receipts. The Republic of South Africa withholds income taxes on dividends. The dividend payments which you actually receive from the American depository bank are reduced by the amount of withheld South African income taxes.

Massachusetts General Laws Chapter 62, Section 6(a) allows a Massachusetts resident to take a credit against Massachusetts personal income taxes for income taxes due to any other state, territory or possession of the United States or to Canada or any of its provinces, on any item of Massachusetts gross income. In computing the credit, the amount of tax due to the other jurisdiction must be reduced by any federal credit allowable on the resident's federal income tax return.

Based on the foregoing it is ruled that no credit is allowable against your Massachusetts personal income taxes for taxes withheld from your dividends by South Africa.

Very truly yours,

/s/L. Joyce Hampers

L. Joyce Hampers
Commissioner of Revenue

LJH/RSF/jmcd

LR 80-11