Document ID: chunk:federal_register_of_legislation:C2025C00014:section:371:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 371 (pt 1/3)
Character Range: 1963088–1965862

371  Attribution credit
 (1) An attribution credit arises for an attribution account entity (in this section called the eligible entity) in relation to a taxpayer if:
 (a) an amount is included in the taxpayer's assessable income under section 456 in respect of the attributable income of the eligible entity for a statutory accounting period; or
 (b) an amount is included in the taxpayer's assessable income under section 457 as a result of a change of residence by the eligible entity; or
 (d) an attribution account payment that requires an attribution debit for another entity in relation to the taxpayer is made to the eligible entity.
 (2) Subject to subsection (4), the amount of the attribution credit is equal to the amount included in assessable income or to the amount of the attribution debit, as the case may be.
 (4) Where:
 (a) the attribution credit arises under paragraph (1)(d) in relation to an attribution account payment consisting of a non‑portfolio dividend paid to the eligible entity, where the eligible entity is a company; and
 (b) the eligible entity is or will be liable to pay an amount of foreign tax on the attribution account payment or on amounts that include the attribution account payment;
then the amount of the attribution credit is reduced by the amount calculated using the formula:

where:
Attribution account percentage  means the taxpayer's attribution account percentage for the attribution account entity.
Foreign tax  means the amount of foreign tax, to the extent that it is attributable to the attribution account payment.
 (5) The attribution credit arises:
 (a) in a paragraph (1)(a) case where subsection 319(6) does not apply to the statutory accounting period referred to in that paragraph—at the end of the statutory accounting period; or
 (aaa) in a paragraph (1)(a) case where subsection 319(6) applies to the statutory accounting period referred to in that paragraph—at the beginning of the statutory accounting period; or
 (b) in a paragraph (1)(b) case—subject to subsection (8), at the time of the change of residence referred to in that paragraph; or
 (d) in a paragraph (1)(d) case—when the attribution account payment referred to in that paragraph is made.
 (6) Where, apart from this subsection, an attribution credit would arise in relation to an attribution account entity for an Australian partnership or an Australian trust in respect of an amount included in the assessable income of the partnership or trust of a year of income under section 456 or 457, then, subject to subsection (7):
 (a) the attribution credit does not arise for the partnership or trust; and
 (b) an attribution credit arises in relation to the attribution account entity for:
 (i) any taxpayer for whom, as a result of the amount