Item 29 - Label O - Thin capitalisation

See Overseas transactions on the ATO website.

Label W—Was the aggregate amount of the transactions with international parties (including the value of any property or service transferred or the balance of any loans) greater than $2 million?

You must answer this mandatory question. The default for this question is No.

If the answer is Yes, the International dealings schedule (I) is mandatory. Click label W to open and complete schedule I (ids). See International dealings schedule (ids).

Label O—Did the thin capitalisation provisions apply?

This is a mandatory question and must be answered.

If the answer to this question is Y, you must complete one or both of labels D Interest expenses overseas or E Royalty expenses overseas. Prepare and attach an International dealings schedule (ids).

Label D—Interest expenses overseas

If the answer to the question at label O is Y and there is an amount of total interest expenses at item 5 label I, you must complete label D. Prepare and attach an International dealings schedule (ids) and enter the amount of interest paid to non-residents during the income year included at item 5 label I.

Label E—Royalty expenses overseas

If the answer to the question at label O is Y and there is an amount of total royalty expenses at item 5 label J, label E must be completed. Prepare and attach an International dealings schedule (ids) and enter the amount of royalties paid to non-residents during the income year included at item 5 label J.

Label C—Transactions with specified countries

Click label C to complete and attach an International dealings schedule (ids).

CCH References

16-000 What are income-related deductions?

16-015 Expenses necessarily incurred in carrying on a business

16-740 Interest as a business deduction

22-000 Thin capitalisation overview

22-030 Royalty withholding tax

22-580 Overview of transfer pricing

42-115 Withholding tax: royalties, interest and dividends