Generally, income taxes paid or accrued to a foreign country or U.S. possession qualify for the FTC. This includes taxes imposed on interest, dividends, rents, royalties, wages, and other forms of income. However, taxes levied on gross receipts or amounts not considered income taxes under IRC Section 901 do not qualify. For example, foreign value-added taxes (VAT) are generally not creditable. Refer to Revenue Procedure 2024-40 for the updated list of creditable foreign taxes.