ato logo
Search Suggestion:

D Net foreign income

Last updated 12 February 2019

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 foreign source losses incurred in the current year (not CGT losses), and
  • subtract expenses to the extent to which they relate to foreign income.

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.

Show foreign exchange gains and losses (from both foreign and domestic sources) at S Other income or L Other deductions as appropriate.

Net foreign income should not be reduced by exempt current pension income.

Show exempt current pension income at K Exempt current pension 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.

Do not take the foreign loss component of a tax loss into account at D. These losses are taken into account at M item 11 Deductions, in accordance with the instructions for that label.

Further Information

For more information see the Foreign income return form guide (NAT 1840).

End of further information

Complete and attach a Losses schedule 2011 if the fund has:

  • total tax losses and net capital losses carried forward to the 2011-12 income year greater than $100,000
  • a foreign loss component of tax losses deducted in the 2010-11 income year or carried forward to later income years
  • an interest in a controlled foreign company (CFC) that has 2011-12 CFC losses greater that $100,000.
  • an interest in a CFC that has deducted or carried forward a loss to later income years greater than $100,000.
End of attention

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 (TOFA).

End of attention

For more information, see Guide to the taxation of financial arrangements (TOFA) rules.