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D Net foreign income

Last updated 12 February 2019

Show at D assessable income that 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
  • subtract foreign source losses incurred in the current year (not CGT losses)
  • subtract expenses to the extent to which they relate to foreign income.

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

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

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 Deductions, as relevant, at:

A Interest expenses within Australia

B Interest expenses overseas

I Investment expenses

J Management expenses

Q Administration expenses

  • L Other deductions.

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

Do not reduce net foreign income by exempt current pension income. Exempt current pension income is shown at Y Exempt current pension income.

Do not show at D:

  • foreign exchange gains and losses. Such gains and losses (from both foreign and domestic sources) should be shown at G Foreign exchange gains or at R Foreign exchange losses item 11 Deductions as appropriate.
  • net foreign source capital gains. This should be shown at A Net capital gain.
  • net foreign income to the extent it is non-arm’s length income of a complying superannuation fund, complying ADF or a PST. Show this at U Net non-arm’s length income.

Find out about

Complete and attach a Losses schedule 2013 if the fund has:

  • total tax losses and net capital losses carried forward to the 2012-13 income year greater than $100,000
  • a foreign loss component of tax losses deducted in the 2012-13 income year or carried forward to later income years
  • an interest in a controlled foreign company (CFC) that has 2012-13 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.

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).

See also