Yes, income earned in a foreign country is treated the same as income earned in the U.S. You need to convert all figures to U.S. dollars, using the exchange rate in effect on the day you filled out the FAFSA. Income paid to the foreign government in that country should be treated as "U.S. income tax paid." If the government of the foreign country did not tax the money, the income should be treated as untaxed income.
If you/your parent filed an income tax return with the relevant tax authority of a U.S. territory, commonwealth, or with a foreign central government, you must provide our office with a transcript that was obtained at no cost from the relevant taxing authority of a U.S. territory (Guam, American Samoa, the U.S. Virgin Islands) or commonwealth (Puerto Rico and the Northern Mariana Islands), or a foreign central government, that includes all of the tax filer's income and tax information required to be verified for the tax year. If a transcript cannot be obtained from the relevant taxing authority, a signed copy of the income tax return(s) is acceptable.