ato logo

About this guide

Last updated 17 May 2020

The Foreign income return form guide contains an explanation of measures relating to the taxation of foreign income derived by, or attributed to, Australian residents. The chapters in this guide are:

Chapter 1

Attribution of the current year profits of a controlled foreign company

Chapter 2

Transferor trust and related measures

Chapter 3

Taxation of foreign dividends and branch profits, and explaining the foreign tax credit system

Chapter 4

Proving your assessment

Chapter 5

Consolidation (consolidated income tax treatment for groups of entities)

Summary sheets at the end of this guide provide a quick reference to assist you in determining if and to what extent the measures apply to you. Where necessary, worksheets have also been provided to help you work out your tax liability.

Although the guide is quite detailed, it may not cover all the qualifications and conditions contained in the law that relate to your circumstances. For instance, it does not discuss the special rules that apply in working out attributable income for companies conducting banking or insurance activities. If you are not sure about the application of the law, phone the Business Infoline on 13 28 66.

The Tax Office regularly receives information from foreign tax authorities under our tax treaties regarding foreign source income paid to (and the tax withheld from) Australian resident taxpayers. We are making increasing use of information-matching technology to verify the correctness of tax returns. Ensure that all information is fully and correctly declared in the relevant tax return.

Unless otherwise stated, references in this guide to provisions of the law are to provisions of the Income Tax Assessment Act 1936 (ITAA 1936).