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  • D Net foreign income

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Show at D assessable income which the fund derived from foreign sources, including New Zealand dividends and supplementary dividends and:

    • add the foreign tax paid on that assessable income to give the 'gross' or pre-tax value, and
    • subtract expenses, including expenses attributable foreign income.

    Do not show net foreign source capital gains here; show them at A Net capital gain.

    If the total amount at D is a negative value, print L in the Loss box.

    If the fund received franked distributions directly or indirectly from a New Zealand franking company, see Trans-Tasman imputation.

    Subject to transitional rules, foreign losses are no longer treated separately from tax losses. As the changes to the foreign loss provisions apply from the first income year starting on or after 1 July 2008, these provisions first applied to superannuation funds and trusts, other than those with early substituted accounting periods, for the 2008-09 income year. However, for those with early substituted accounting periods the transitional provisions commence this year.

    Do not take converted foreign losses into account at D. Converted foreign losses are taken into account at M item 11 Deductions, in accordance with the instructions for that label.

    See also:

    Foreign income return form guide

    Do not subtract debt deductions in calculating net foreign income at D, except where they are attributable to an overseas permanent establishment of the fund. Show the debt deductions, which are not attributable to an overseas permanent establishment of the fund, at item 11, as relevant, at:

    • A Interest expenses within Australia
    • B Interest expenses overseas
    • I Investment expenses
    • J Management and administration expenses
    • L Other deductions.

    Complete and attach a Losses schedule 2010 if the fund has:

    • total tax losses and net capital losses carried forward to the 2010-11 income year greater than $100,000
    • convertible foreign losses,
    • an interest in a controlled foreign company (CFC) that has convertible CFC losses
    • an interest in a CFC that has deducted or carried forward a loss to later income years greater than $100,000.

    Even if the TOFA rules apply to the fund, show at D all net foreign income received by it.

    If what you show at D includes an amount brought to account under the TOFA rules, also complete item 16: Taxation of financial arrangements.

    Find out about:

    Guide to the taxation of financial arrangements (TOFA)

    Last modified: 13 Feb 2019QC 22855