T5 – Tax payable
Complete T5 as it is mandatory.
Write at T5 the amount of tax payable after F has been offset against T4.
Work out the amount at T5 as follows:
- If the amount at F is less than the amount at T4
- take F away from T4
- write the result at T5.
- If the amount at F is more than or equal to the amount at T4
- write zero at T5
- the difference between T4 and F (take T4 away from F) may be carried forward to a later income year.
T5 cannot be less than zero. Include an amount even if it is zero (if zero write 0).
Example 20a
Dark Red Co. Pty Ltd, a base rate entity has the following amounts entered into its company tax return:
|
Label |
Description |
Amount |
|---|---|---|
|
A |
Taxable income |
$42,000 |
|
B |
Gross tax (25%) |
$10,500 |
|
C |
Non-refundable non-carry forward tax offset |
$3,000 |
|
T2 |
Subtotal 1 |
$7,500 |
|
D |
Non-refundable carry forward tax offset |
$3,000 |
|
T3 |
Subtotal 2 |
$4,500 |
|
E |
Refundable tax offset |
$3,000 |
|
T4 |
Subtotal 3 |
$1,500 |
|
F |
Franking deficit tax offset |
$1,000 |
|
T5 |
TAX PAYABLE |
$500 |
|
I |
Tax offset refunds (remainder of refundable tax offsets) |
$0 |
|
S |
Amount due or refundable |
$500 |
The lower company tax rate of 25% has been applied in this example.
Dark Red Co. Pty Ltd has an entitlement of $3,000 of non-refundable non-carry forward tax offset, $3,000 of non-refundable carry forward tax offset, $3,000 of refundable tax offset and $1,000 of franking deficit tax offset to be used to offset against $10,500 gross tax.
- Tax payable has been reduced to $500.
- I must show $0.
Example 20b
Light Red Co. Pty Ltd, a base rate entity, has the following amounts entered into its company tax return:
|
Label |
Description |
Amount |
|---|---|---|
|
A |
Taxable income |
$42,000 |
|
B |
Gross tax (25%) |
$10,500 |
|
C |
Non-refundable non-carry forward tax offset |
$3,000 |
|
T2 |
Subtotal 1 |
$7,500 |
|
D |
Non-refundable carry forward tax offset |
$3,000 |
|
T3 |
Subtotal 2 |
$4,500 |
|
E |
Refundable tax offset |
$3,000 |
|
T4 |
Subtotal 3 |
$1,500 |
|
F |
Franking deficit tax offset |
$4,000 |
|
T5 |
TAX PAYABLE |
$0 |
|
I |
Tax offset refunds (remainder of refundable tax offsets) |
$0 |
|
S |
Amount due or refundable |
$0 |
The lower company tax rate of 25% has been applied in this example.
Light Red Co. Pty Ltd has an entitlement of $3,000 of non-refundable non-carry forward tax offset, $3,000 of non-refundable carry forward tax offset, $3,000 of refundable tax offset and $4,000 of franking deficit tax offset to be used to offset against $10,500 gross tax.
- Tax payable has been reduced to $0.
- I must show $0.
- Light Red Co. Pty Ltd will have a $2,500 remaining (of FDT offset) that can be carried over to the next income year, as tax payable has been reduced to $0.
G – Section 102AAM interest charge
Write at G any section 102AAM interest relating to a distribution received from a non-resident trust. Section 102AAM of the ITAA 1936 imposes an interest charge on certain distributions from non-resident trusts.
For more information, see chapter 2 of the Foreign income return form guide 2022.
Continue to: Calculation statement label H – Eligible credits