Show download pdf controls
  • B Interest expenses overseas



    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Show at B the deductible interest incurred on money borrowed from overseas sources to:

    • acquire income-producing assets
    • finance operations, or
    • meet current expenses.

    Even if the TOFA rules apply to the fund, show at B all interest incurred on money borrowed from overseas sources. This includes interest from financial arrangements subject to the TOFA rules.

    If what you show at B includes an amount brought to account under the TOFA rules, also complete item 16 Taxation of financial arrangements (TOFA).

    See also:

    Guide to the taxation of financial arrangements (TOFA) rules

    The fund should generally withhold an amount of tax (withholding tax) from interest paid or payable to non-residents, and from interest paid to a resident which was derived by the resident through an overseas branch. The fund must remit these amounts to us.

    Record keeping

    If the fund paid interest to non-residents, it must keep a record of the following:

    • name and address of recipients
    • amount of interest paid or credited
    • amount of tax withheld and the date it was remitted to us.

    If the fund has withheld amounts from payments to non-residents the fund may need to lodge a PAYG withholding from interest, dividend and royalty payments paid to non-residents – annual report by 31 October 2013.

    Last modified: 13 Feb 2019QC 35420