Breadcrumbs

Early stage investor tax offset worksheet (esi) Company

Before completing the worksheet and claiming the ESIC tax offset, it's important to read Early stage investor tax offset on the ATO website.

You'll find the worksheet at item 23 in the Company return.

EC Item 23 ESIC labels.PNG

To complete the worksheet

  1. Click in Goto (F2) and enter 23 and then click label M or R to open the worksheet.

  2. The Evidence the company qualifies as ESIC obtained checkbox is mandatory and the Sophisticated investor checkbox must be ticked if an offset is to be allowed. You must only tick the Sophisticated investor checkbox if the taxpayer has passed the sophisticated investor test for at least one of the transactions. The Sophisticated investor test does not apply if the company receives a distribution of ESIC ax offset from a partnership or trust.

    In the following example, both checkboxes are ticked and the taxpayer can claim 20% of the investment amount as a tax offset.

    Company_ESIC_3.png

  3. Enter any excess esi tax offset to c/f at the end of the previous year, reduced under Division 65 of the ITAA 1997 by any net exempt income.

  4. Click Worksheet, and fill out the details as required including your manually calculated tax offset..

    Company_ESIC_4.png

  5. Click Close and then press F6 or click OK or the Save icon to close the worksheet and filter the total through to the labels at item 23.

  6. Company_ESIC_9.png

    The amount at label M filters through to the Calculation Statement: Non-refundable carry-forward tax offset worksheet (ncf).
    esi3.png
    The sum of all offsets in the ncf filters through to label D in the main return.

    Company_ESIC_7.png

     

  7. F4 Estimate

    The amount at label D is included in the estimate:

    Company_ESIC_8.png  

    The ESIC offset is not included in the calculation of GDP-Adjusted income for PAYG income tax instalments purposes.

 

CCH References

20-700 Outline of innovation incentives