About controlled foreign company losses
A controlled foreign company (CFC) is no longer required to quarantine revenue losses into separate classes of notional assessable income. However, CFC losses continue to be quarantined in the CFC that incurred them.
The amounts shown at labels N, O and P are the totals of the head company's share of losses incurred by CFCs. The head company's share of a loss of a CFC is calculated by applying its attribution percentage in the CFC to the loss of the CFC.
The attribution percentage in a CFC is broadly equal to the sum of an entity’s direct and indirect attribution interests in a CFC, see section 362 of the ITAA 1936.
For more information on CFCs and attribution percentages, see:
N Current year CFC losses
Write at label N the total amount of the head company's share of current CFC losses for a statutory accounting period that ends in 2025–26.
O CFC losses deducted
Write at label O the total of the head company's share of CFC losses deducted for a statutory accounting period that ends in 2025–26.
P CFC losses carried forward
Write at label P the total amount of the head company's share of CFC losses, if any, that is available to be carried forward to statutory accounting periods that end in later income years.
Continue to: Part F – Tax losses reconciliation for consolidated groups
Return to: Instructions to complete the Consolidated groups losses schedule 2026