Item 23 - Other assessable foreign source income

Click this link for information on Item 23 Other assessable foreign source income on the ATO website.

Other assessable foreign income amounts both Gross and Net, together with the Foreign income tax offset integrate to these labels from the Foreign Income worksheet (for). Refer to Foreign income worksheet (for).

Changes to income tests require partner to report their share of the partnership rental property income or loss. As such, if you have included foreign rental income at item 23, MYOB Tax will pre-fill that amount to the dialog behind item 50 label H and carry that amount through to the Distribution Statement at K item 51 so that each partner may receive the correct share of net rental property income or loss.

You will be required to complete item 50 label G if you have included Gross income from Foreign dividends at label B or deductions on foreign source income at label V related to Foreign company dividends.

Label B - Gross foreign source income

Show at label B the gross amount of assessable income derived from foreign sources (i.e. the amount before any foreign or Australian tax is withheld or paid), including amounts distributed from other partnerships and trusts as well as New Zealand dividends and supplementary dividends. Include any foreign tax paid on that income.

CCH References

4-490 Trans-Tasman triangular imputation rules

21-110 Controlled foreign companies: Introduction

21-300 Transferor trusts measures

21-360 Foreign investment funds - Introduction

21-670 Foreign income tax offsets: Introduction

21-680 Entitlement to foreign income tax offset

21-710 Amount of foreign income tax offset

21-760 Treatment of excess foreign tax

Label V - Net foreign source income (other than shown at item 22)

Show at V the net income derived from foreign sources.

Click label V to open the worksheet for. Refer to Foreign income worksheet (for) .

CCH References

4-490 Trans-Tasman triangular imputation rules

21-110 Controlled foreign companies: Introduction

21-300 Transferor trusts measures

21-360 Foreign investment funds - Introduction

21-670 Foreign income tax offsets: Introduction

21-680 Entitlement to foreign income tax offset

21-710 Amount of foreign income tax offset

21-760 Treatment of excess foreign tax

Label Z - Foreign income tax offsets

Show at label Z the amount of any Foreign income tax offset claimed against foreign source income.

Partnerships do not include offsets for tax paid for foreign sourced gains of a capital nature.

If foreign income tax has been paid by the Partnership then the partners may be able to claim a foreign income tax offset in their individual income tax returns.

Use the Foreign Income worksheet (for) to record transactions and have the available foreign income tax offset limit and the allowable foreign income tax offset calculated. Click label Z to open the worksheet for. Refer to Foreign income worksheet (for) .

Also refer to Guide to foreign income tax offset rules (NAT 72923) available on the ATO website.

CCH References

4-490 Trans-Tasman triangular imputation rules

21-670 Foreign income tax offsets: Introduction

21-680 Entitlement to foreign income tax offset

21-710 Amount of foreign income tax offset

21-760 Treatment of excess foreign tax

Label D - Australian franking credits from a New Zealand company

Show at label D the amount of Australian franking credits that are included in the net income of the partnership because of franked dividends received from a New Zealand franking company directly or indirectly through another partnership or trust.

The amount shown at label D is not necessarily the total amount that can be claimed each partner.

CCH References

4-490 Trans-Tasman triangular imputation rules

21-670 Foreign income tax offsets

21-680 Entitlement to foreign income tax offset