Most investors can take a credit or a deduction for their share of foreign taxes paid, as reported in Box 7 of Form 1099-DIV, by their mutual funds with significant non-U.S. holdings. Taking a credit usually is more advantageous, but to qualify you must have held your shares in a fund for at least 16 days of the 31-day period starting 15 days before the ex-dividend date of the fund. For additional information, refer to IRS Publication 514, Foreign Tax Credit for Individuals, and the Instructions for Form 1116, Foreign Tax Credit (Individual, Estate, or Trust).
If you pay state intangible property tax on the value of your fund, you may be able to exclude a portion of such value attributable to the fund's investments in U.S. government securities. To determine this amount, multiply the "% of Fund Held in U.S. Government Securities on December 31, 2025" (shown below in Column 2) by the total value of your shares at year end. Consult your tax advisor or your state tax office for more information.
Foreign Tax Deduction
If you wish to take a deduction instead of a credit:
Foreign Tax Credit
If you wish to take a credit, you may elect to report the total foreign taxes paid in Box 7 of your Form 1099-DIV directly on Schedule 3 (Form 1040) if you meet all of the following conditions:
If you do not meet the conditions above, you generally will be required to complete Form 1116 , Foreign Tax Credit (Individual, Estate, or Trust). Form 1116 computes the amount of the foreign tax credit you may claim on your tax return.
Information to assist you in completing your Form 1116 is provided in the tables below. Please note that you do not need to report the income or taxes paid by a mutual fund on a country-by-country basis on this form. To calculate your foreign source income and foreign source qualified income, multiply the amount in Box 1a of your Form 1099-DIV by the “Foreign Source Income Percentage” and “Foreign Source Qualified Dividend Percentage” columns, respectively. If your fund has foreign source qualified dividends, you may be required to make certain adjustments to this amount unless you qualify for an adjustment election. Please refer to the Instructions for Form 1116 for more detailed information.
Please consult your tax professional for the impact to your return.
International/Global Stock Funds
| T. Rowe Price Fund | Foreign Source Income Percentage | Foreign Source Qualified Dividend Percentage |
|---|---|---|
| Africa & Middle East | 46.65% | 9.29% |
| Asia Opportunities | 97.02% | 97.02% |
| China Evolution Equity | 84.74% | 65.81% |
| Emerging Europe | 88.79% | 88.79% |
| Emerging Markets Discovery Stock1 | 47.81% | 26.32% |
| Emerging Markets Stock | 93.77% | 52.62% |
| European Stock1 | 77.08% | 77.08% |
| Global Impact Equity | 46.70% | 46.70% |
| Global Multi-Sector Bond | 58.80% | — |
| International Discovery1 | 59.21% | 57.94% |
| International Equity Index1 | 66.74% | 58.51% |
| International Stock1 | 54.93% | 42.46% |
| International Value Equity1 | 88.08% | 78.29% |
| Japan | 46.51% | 40.99% |
| Latin America | 89.08% | 69.93% |
| New Asia | 100.00% | 77.84% |
| Overseas Stock1 | 99.35% | 95.90% |
| T. Rowe Price Fund | Foreign Source Income Percentage | Foreign Source Qualified Dividend Percentage |
|---|---|---|
| Retirement 2005 | 7.77% | 7.26% |
| Retirement 2010 | 8.91% | 8.35% |
| Retirement 2015 | 10.04% | 9.47% |
| Retirement 2020 | 10.66% | 10.19% |
| Retirement 2025 | 12.07% | 11.69% |
| Retirement 2030 | 17.21% | 17.21% |
| Retirement 2035 | 24.87% | 24.87% |
| Retirement 2040 | 31.61% | 31.61% |
| Retirement 2045 | 38.35% | 38.35% |
| Retirement 2050 | 41.09% | 41.09% |
| Retirement 2055 | 40.18% | 40.18% |
| Retirement 2060 | 41.41% | 41.41% |
| Retirement 2065 | 40.43% | 40.43% |
| Retirement 2070 | 40.29% | 36.20% |
| Retirement Income 2020 | 9.89% | 9.22% |
| Retirement Income 2025 | 12.99% | 11.97% |
| Retirement Blend 2005 | 8.13% | 6.90% |
| Retirement Blend 2010 | 9.35% | 8.00% |
| Retirement Blend 2015 | 9.42% | 8.10% |
| Retirement Blend 2020 | 10.62% | 9.09% |
| Retirement Blend 2025 | 12.26% | 10.55% |
| Retirement Blend 2030 | 17.36% | 15.06% |
| Retirement Blend 2035 | 24.52% | 21.56% |
| Retirement Blend 2040 | 29.51% | 26.18% |
| Retirement Blend 2045 | 34.21% | 30.51% |
| Retirement Blend 2050 | 35.11% | 31.46% |
| Retirement Blend 2055 | 35.42% | 31.71% |
| Retirement Blend 2060 | 35.54% | 31.85% |
| Retirement Blend 2065 | 34.98% | 31.58% |
| Retirement Blend 2070 | 37.16% | 32.19% |
| Spectrum International Equity | 71.15% | 71.15% |
| Target 2005 | 5.52% | 5.04% |
| Target 2010 | 6.09% | 5.56% |
| Target 2015 | 6.39% | 5.85% |
| Target 2020 | 6.76% | 6.24% |
| Target 2025 | 8.12% | 7.56% |
| Target 2030 | 11.69% | 11.06% |
| Target 2035 | 17.12% | 16.56% |
| Target 2040 | 23.84% | 23.84% |
| Target 2045 | 28.61% | 28.61% |
| Target 2050 | 34.69% | 34.69% |
| Target 2055 | 35.18% | 35.18% |
| Target 2060 | 37.43% | 37.43% |
| Target 2065 | 37.55% | 37.55% |
| Target 2070 | 39.09% | 37.65% |
| T. Rowe Price ETF | Foreign Source Income Percentage | Foreign Source Qualified Dividend Percentage |
|---|---|---|
| International Equity ETF | 73.85% | 73.85% |
| International Equity Research ETF | 45.53% | 45.53% |
1The fund received a refund of foreign taxes paid (with an interest adjustment) and the amount of Foreign Tax Paid in Box 7 may be less than what is included in Box 1a for Ordinary Dividends on your Form 1099-DIV. Ordinary Dividends is the sum of your income dividends, short-term capital gain, foreign tax paid, as well as any interest adjustment.
If a fund is not listed, it did not pass through a foreign tax credit.
Percentages are the same for all fund classes (Investor, Advisor, R, and I classes). For more information on Advisor, R, Institutional, and Portfolio funds, please visit our website for financial intermediaries.
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