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  • Section C: Calculation of tax payable or refundable

    Section C of the form is the calculation of the tax payable or refundable.

    Question 15 – Has the entity elected to be bound by the functional currency rules?

    At question 15, indicate whether a choice to be bound by the functional currency rules was in place for the year of tax.

    • If the entity has not elected to be bound by the functional currency rules for the year of tax, place an X in the 'No' box at question 15 and go to question 18.
    • If the entity has elected be bound by the functional currency rules for the year of tax, place an X in the 'Yes' box at question 15.

    Question 16 – What is the functional currency translation rate?

    At question 16, provide the exchange rate (to four significant figures) used to translate amounts from the applicable functional currency into Australian dollars.

    The translation rate is the amount by which the functional currency amount is divided to reflect an equivalent amount of Australian dollars – that is, the number of non-Australian dollar currency units that equal one Australian dollar (to four significant figures).

    Question 17 – State the applicable functional currency code

    At question 17, provide the applicable functional currency code.

    See also:

    Question 18 – Expenses payable in relation to sales

    At question 18, label 18A, provide the total expenses incurred in relation to the sales for which the entity derived the assessable receipts reported at question 19.

    Question 19 – Assessable receipts derived

    At question 19, provide details of all assessable receipts amounts derived during the year of tax. Insert:

    • at label 19B, the total amount of assessable petroleum receipts
    • at label 19C, the total amount of assessable tolling receipts
    • at label 19D, the total amount of assessable exploration recovery receipts
    • at label 19E, the total amount of assessable property receipts
    • at label 19F, the total amount of assessable miscellaneous compensation receipts
    • at label 19G, the total amount of assessable employee amenities receipts
    • at label 19H, the total amount of assessable incidental production receipts
    • at label 19I, the project’s total assessable receipts (19B + 19C + 19D + 19E + 19F + 19G + 19H).

    Generally, the assessable receipts relating to sales (provided at question 19) are calculated as consideration received less direct expenses incurred in relation to the sale (provided at question 18).

    See also:

    Question 20 – Deductible expenditure incurred

    Provide details of deductible expenditure amounts incurred during the year of tax. Insert:

    • at label 20J, the total amount of class 1 augmented bond rate general expenditure
    • at label 20K, the total amount of class 1 augmented bond rate exploration expenditure
    • at label 20L, the total amount of class 2 uplifted general expenditure
    • at label 20M, the total amount of class 1 GDP factor expenditure
    • at label 20N, the total amount of class 2 uplifted exploration expenditure
    • at label 20O, the total amount of class 2 GDP factor expenditure
    • at label 20P, the total amount of resource tax expenditure
    • at label 20R, the total amount of starting base expenditure
    • at label 20S, the total amount of closing-down expenditure
    • at label 20T, the project's total deductible expenditure (20J + 20K + 20L + 20M + 20N + 20O + 20P + 20R + 20S).

    Resource tax expenditure and starting base expenditure are applicable to the North West Shelf project only.

    Uplifted undeducted deductible expenditure incurred in previous years should also be included at the appropriate labels in question 20.

    See also:

    Question 21 – Exploration expenditure amounts transferred to this project

    To transfer amounts of exploration expenditure, you must complete a Notification of transfer of petroleum resource rent tax (PRRT) exploration expenditure (NAT 9849a). You can lodge the notification of transfer of PRRT exploration expenditure with the PRRT return. This will ensure prompt processing of the return.

    Provide details of any exploration expenditure transferred from other projects during the year of tax, as follows:

    • at label 21U, the total of the amounts of exploration expenditure transferred to the petroleum project from other projects of the entity
    • at label 21V, the total of the amounts of exploration expenditure transferred to the petroleum project from projects of group companies
    • at label 21W, the total amount of exploration expenditure transferred to the petroleum project (21U + 21V).

    Provide a 0 (zero) if no amounts have been transferred to the petroleum project for the year of tax.

    Label 21W will be the sum of the amounts of all label Bs from all completed notifications of transfer of PRRT exploration expenditure, and any attachments to the notices.

    Don't use any symbols, such as + or −, at question 21.

    Provide the total amounts of exploration expenditure the entity is transferring for the year of tax. This amount can differ from any amounts previously indicated on an instalment statement.

    Question 22 – Has an instalment transfer excess arisen in relation to any instalment period during the year of tax?

    At question 22, place an X in the appropriate box to indicate whether an instalment transfer excess has arisen for this petroleum project for any instalment period during the year of tax.

    If you answered 'Yes' to question 22, an instalment transfer interest charge may be imposed. Complete and lodge a Notification of petroleum resource rent tax (PRRT) instalment transfer interest charge (NAT 16121) with this PRRT return.

    Question 23 – Taxable profit and undeducted expenditure

    At question 23, calculate the entity’s taxable profit by subtracting the total deductible expenditure and total amount transferred from total assessable receipts (19I minus 20T minus 21W).

    If the result is a:

    • positive amount, provide the amount at label 23A and go to question 24
    • 0 (zero), provide a 0 (zero) at labels 23A and 23B and go to question 24
    • negative amount, provide a 0 (zero) at label 23A. Calculate the entity's undeducted expenditure by subtracting the entity’s total assessable receipts from its total deductible expenditure (20T minus 19I) and provide the result at label 23B.

    Question 24 – Is the entity claiming a tax credit relating to closing-down expenditure?

    At question 24, place an X in the appropriate box to indicate whether the entity is claiming a tax credit relating to closing-down expenditure.

    A credit for closing-down expenditure can only be claimed if there is an amount of closing-down expenditure at label 20S and an amount of undeducted expenditure at label 23B.

    If you answer Yes at question 24, provide:

    • at label 24C, the total PRRT paid by the entity for this petroleum project in all previous years
    • at label 24D, the total credits previously claimed (if any) in all previous years.
    • at label 24E, the excess credit amount – that is, the total PRRT paid less any credits previously claimed (24C minus 24D)
    • at label 24F, the total amount of undeducted closing-down expenditure from label 23B or 20S, whichever is less
    • at label 24G, the excess credit amount – that is, the total amount of undeducted closing-down expenditure multiplied by 40% (24F × 0.4)
    • at label 24H, the tax credit claimed – that is, the amount showing at label 24E or 24G, whichever is less.

    Question 25 – Tax payable

    At question 25, label I, provide the tax payable for the year of tax. The tax payable is the taxable profit multiplied by 40% (23A × 0.4). If the taxable profit (23A) is 0 (zero), provide a 0 (zero) at label I.

    Provide the instalment amount paid and the date of the payment for the instalment periods ending:

    • 30 September (label 25J)
    • 31 December (label 25K), and
    • 31 March (label 25L).

    At label 25M, provide the entity's credit for the instalments paid during the year of tax (25J + 25K 25L).

    At label 25N, provide any credit the entity has claimed for closing-down expenditure at label 24H.

    Question 26 – Balance due/refundable

    Calculate the entity’s balance due or refundable and provide:

    • the balance due at label 26O, or
    • the balance refundable at label 26P.

    If the entity's tax payable less credit for instalments paid (25I minus 25M) is:

    • a positive amount, this is the entity's balance due. Provide this amount at label 26O, leave label 26P blank and go to section D
    • a negative amount or a 0 (zero), provide a 0 (zero) at label 26O and complete label 26P.

    If the entity's tax payable, less credit for instalments paid, less credit for closing-down expenditure (25I minus 25M minus 25N) is:

    • a negative amount, this is the entity's balance refundable (or that will be offset against any other tax debt the entity has). Provide this amount at label 26P
    • a 0 (zero), provide a 0 (zero) at label 26P.
    Last modified: 20 Sep 2021QC 26733