Item 23 - Early stage investor tax offset
You may be entitled to claim the early stage investor tax offset for the income year if you:
- invested in an early stage innovation company during the current income year,
- have an amount of unused early stage investor tax offset carried forward from a previous year.
The maximum offset (including current income year and carried forward prior year amounts) that you, and your affiliates combined, can claim in the current income year cannot exceed $200,000.
Label M-Current year tax offset
For more information on the Early stage investor tax offset and the qualification requirements, see Tax incentives for early stage investors on the ATO website.
The amount item 23 label M is the early stage investor tax offset for the current year.
We'll include this amount in the Calculation Statement: label D Non-refundable carry forward tax offsets worksheet (ncf) to be included in the total at label D in the main return.
Label R-Tax offset carried forward from previous year
Write at label R the amount of unused early stage investor tax offset carried forward from a previous year.
If you claimed the early stage investor tax offset in one or more earlier income years commencing on or after 1 July 2016 and you didn't apply all or part of the tax offset in the earlier income years, you may be able to carry forward and use that excess in the current income year. To work out whether you can carry forward and use all or part of the early stage investor tax offset from an earlier income year this year, refer to Division 65 of the ITAA 1997.
Do not include an amount at label R if you are prevented from using the early stage investor tax offset from an earlier income year by Division 65 which states that before you can apply a tax offset from a prior year to reduce the amount of income tax that you will pay in a later year, you must apply it to reduce certain amounts of net exempt income. If the company is a base rate entity for the year, net exempt income is reduced by $1 for each 27.5 cents of the tax offset; otherwise net exempt income is reduced by $1 for each 30 cents of the tax offset.
For more information on the Early stage investor tax offset and the qualification requirements, see Tax incentives for early stage investors on the ATO website.
CCH References
20-700 Outline of innovation incentives