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Section C: Calculation of notional tax amount in relation to instalment period

How to complete Section C of the PRRT instalment statement.

Last updated 21 July 2024

Question 11: Has the entity elected to be bound by the functional currency rules?

If a choice to be bound by the functional currency rules was:

  • not in place for the year of tax, place an X in the 'No' box and go to question 14
  • in place for the year of tax, place an X in the 'Yes' box.

A functional currency for PRRT purposes has to be a currency other than Australian dollars. If the entity uses Australian dollars for PRRT purposes, place an X in the 'No' box and go to question 14.

Question 12: What is the functional currency translation rate?

Insert the exchange rate (rounded to 4 significant figures) used to translate amounts from the applicable functional currency into Australian dollars.

The translation rate is the amount by which the functional currency amount is divided to reflect an equivalent amount of Australian dollars. That is, it is the number of non-Australian dollar currency units that equal one Australian dollar, rounded to 4 significant figures.

Question 13: State the applicable functional currency code

Insert the functional currency code.

For the list of functional currency codes that can be used, refer to Guide to functional currency rules.

Question 14: Expenses payable in relation to sales

Insert at label 14A the total expenses incurred in relation to the sales for which the entity derived the assessable receipts reported at question 15.

Question 15: Assessable receipts derived

Insert at label 15B the total amount of assessable petroleum receipts (if any) derived during the instalment period.

Insert at label 15C the total amount of assessable tolling receipts (if any) derived during the instalment period.

Insert at label 15D the total amount of assessable exploration recovery receipts (if any) derived during the instalment period.

Insert at label 15E the total amount of assessable property receipts (if any) derived during the instalment period.

Insert at label 15F the total amount of assessable miscellaneous compensation receipts (if any) derived during the instalment period.

Insert at label 15G the total amount of assessable employee amenities receipts (if any) derived during the instalment period.

Insert at label 15H the total amount of assessable incidental production receipts (if any) derived during the instalment period.

Insert at label 15I the project’s total amount of assessable receipts derived during the instalment period (15B + 15C + 15D + 15E + 15F + 15G + 15H).

Generally, the assessable receipts (inserted at question 15) is the consideration received less the direct expenses incurred in relation to the sale inserted at question 14.

For information about working out total assessable receipts derived, refer to PRRT assessable receipts.

Question 16: Deductible expenditure incurred

Insert at label 16J the total amount of class 1 augmented bond rate general expenditure (if any) incurred during the instalment period.

Insert at label 16K the total amount of class 1 augmented bond rate exploration expenditure (if any) incurred during the instalment period.

Insert at label 16L the total amount of class 2 uplifted general expenditure (if any) incurred during the instalment period.

Insert at label 16M the total amount of class 1 GDP factor expenditure (if any) incurred during the instalment period.

Insert at label 16N the total amount of class 2 uplifted exploration expenditure (if any) incurred during the instalment period.

Insert at label 16O the total amount of class 2 GDP factor expenditure (if any) incurred during the instalment period.

Insert at label 16P the total amount of resource tax expenditure (if any) incurred during the instalment period.

Insert at label 16R the total amount of starting base expenditure (if any) incurred during the instalment period.

Insert at label 16Z the total amount of augmented denied deductible expenditure (if any) incurred during the instalment period.

Insert at label 16S the total amount of closing-down expenditure (if any) incurred during the instalment period.

Insert at label 16T the project's total deductible expenditure incurred during the instalment period (16J + 16K + 16L + 16M + 16N + 16O + 16P + 16R + 16Z + 16S).

The instalment percentage of augmented deductible expenditure should be included at the appropriate labels at question 16.

For information about working out the total deductible expenditure incurred, refer to PRRT deductible expenditure.

Question 17: Exploration expenditure amounts transferred to this project for the instalment period

Do not use any symbols, such as + or −.

If the entity is intending to transfer a lesser amount of exploration expenditure to this petroleum project than they indicated they would in a previous PRRT instalment statement, indicate the total amount they now intend to transfer. Do not insert a negative figure to show an adjustment to a previously indicated transferred exploration amount.

Insert at label 17U the total of the amounts of exploration expenditure transferred to the entity's interest in the petroleum project from other petroleum interests of the entity (if any) for the instalment period.

Insert at label 17V the total of the amounts of exploration expenditure transferred to the entity's interest in the petroleum project from petroleum interests of group companies (if any) for the instalment period.

Insert at label 17W the total amount of exploration expenditure transferred to the entity's interest in the petroleum project. This is calculated by adding the total amounts transferred from other petroleum interests of the entity and from other group companies (17U + 17V). Insert a 0 (zero) if no amounts have been transferred to the petroleum project for the instalment period.

Question 18: Taxable profit and undeducted expenditure

Entity is not subject to tax under the deductions cap in the previous year of tax

If you have placed an X in the 'No' box at question 7A, indicating that the entity is not subject to tax under the deductions cap in the previous year of tax, insert a 0 (zero) at label 18C and complete label 18A as follows:

  • Calculate the entity’s taxable profit by subtracting the total deductible expenditure and total amount transferred from total assessable receipts (15I − 16T − 17W). If the result is a:
    • positive amount, insert the amount at label 18A and insert a 0 (zero) at label 18B
    • negative amount or 0 (zero), insert a 0 (zero) at label 18A and complete label 18B according to the instructions below.
  • Calculate the entity's undeducted expenditure at label 18B by subtracting the entity’s total assessable receipts from its total deductible expenditure (16T − 15I). If the result is a:
    • positive amount, insert the amount at label 18B and go to question 19
    • negative amount or 0 (zero), insert a 0 (zero) at label 18B and go to question 19.

Entity is subject to tax under the deductions cap in the previous year of tax

Alternatively, if you have placed an X in the 'Yes' box at question 7A, indicating that the entity is subject to tax under the deductions cap in the previous year of tax, insert a 0 (zero) at label 18A and complete label 18C as follows:

  • Calculate the entity's taxable profit deductions cap by multiplying the total assessable receipts by 10% (15I × 10%). If the result is a:
    • positive amount, insert the amount at label 18C
    • 0 (zero), insert a 0 (zero) at label 18C.
  • Calculate the entity's undeducted expenditure at label 18B by subtracting the entity's total assessable receipts from its total deductible expenditure (16T − 15I). If the result is a:
    • positive amount, insert the amount at label 18B and go to question 19
    • negative amount or 0 (zero), insert a 0 (zero) at label 18B and go to question 19.

Question 19: Calculation of the amount of instalment

You cannot claim a refund for instalments previously paid by the entity through the PRRT instalment statement. Instalment amounts paid during the year which exceed the entity's assessed PRRT at the end of the year of tax will be either refunded or offset against any other tax debt the entity has.

Insert at label 19C the tax payable for the instalment period. If the entity was:

  • not subject to tax under the deductions cap in the previous year of tax and you have inserted a 0 (zero) at label 18C, this will be the taxable profit at label 18A multiplied by 40% (18A × 40%)
  • subject to tax under the deductions cap in the previous year of tax and you have inserted a 0 (zero) at label 18A, this will be the taxable profit-deductions cap at label 18C multiplied by 40% (18C × 40%).

If the taxable profit at label 18A and label 18C are both 0 (zero), insert a 0 (zero) at label 19C.

If the instalment period to which this statement relates is the entity's first instalment period ending 30 September:

  • insert a 0 (zero) at labels 19D and 19E
  • insert the amount of tax payable calculated at label 19C at label 19F.

If the instalment period to which this statement relates is the entity's second instalment period ending 31 December:

  • insert the tax payable from the entity's first instalment period ending 30 September at label 19D
  • insert a 0 (zero) at label 19E
  • calculate the entity's notional tax amount payable by subtracting the tax payable for the entity's first instalment period ending 30 September from the tax payable for the entity's current instalment period (19C − 19D). If the result is a      
    • positive amount, insert the result at label 19F
    • negative amount or 0 (zero), insert a 0 (zero) at label 19F.

Note: The amount at label 19D is the same amount reported for the entity’s first instalment period ending 30 September.

If the instalment period to which this statement relates is the entity's third instalment period ending 31 March:

  • insert the tax payable from the entity's first instalment period ending 30 September at label 19D
  • insert the tax payable from the entity's second instalment period ending 31 December at label 19E
  • calculate the entity's notional tax amount payable by subtracting the sum of the tax payable for the entity's first instalment period ending 30 September and the tax payable for the entity's second instalment period ending 31 December from the tax payable for the entity's current instalment period (19C − 19D − 19E). If the result is a      
    • positive amount, insert the result at label 19F
    • negative amount or 0 (zero), insert a 0 (zero) at label 19F.

Note: The amounts at labels 19D and 19E are the same amounts as reported in the periods ending 30 September and 31 December respectively.

 

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