House of Representatives
Taxation (Multinational - Global and Domestic Minimum Tax) Bill 2024
Taxation (Multinational - Global and Domestic Minimum Tax) Imposition Bill 2024
Treasury Laws Amendment (Multinational - Global and Domestic Minimum Tax) (Consequential) Bill 2024
Explanatory Memorandum
(Circulated by authority of the Assistant Minister for Competition, Charities and Treasury, the Hon Dr Andrew Leigh MP)Attachment 1: Conversion Table
Conversion tables for the Assessment Bill and Consequential Bill
The following conversion table has been included to assist readers in identifying the comparable legislative reference to the OECD GloBE Model Rules, Commentary and Agreed Administrative Guidance (OECD). The conversion tables identify provision in the Imposition Bill, Assessment Bill or Consequential Bill (Primary law) that correspond to an Article in the OECD GloBE Model Rules, Commentary or Agreed Administrative Guidance. Where applicable, it may also refer to sections of the Agreed Administrative Guidance and Commentary relevant for each provision and Article.
There are no equivalent GloBE model rules for provisions in the Imposition Bill.
In the conversion table:
- •
- No equivalent means that this is a new provision in the Legislative package that has no equivalent in the OECD GloBE Model Rules.
- •
- Legislation not required means that the provision of the OECD GloBE Model Rules is not appropriate for inclusion in the Legislative package.
Assessment Bill
| Assessment Bill provision | OECD |
| 1 | No equivalent |
| 2 | No equivalent |
| 3 | See Art 8.3.1 OECD GloBE Model Rules |
| 4 | No equivalent |
| 5 | No equivalent |
| 6 | See Art 2.1.1 OECD GloBE Model Rules |
| 7 | No equivalent |
| 8 | page 59 paragraph 14 Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), July 2023 published by the OECD on 17 July 2023. |
| 9 | No equivalent |
| 10 | See Articles 2.4 and 2.5 OECD GloBE Model Rules |
| 11 | No equivalent |
| 12 | See Art 1.1 OECD GloBE Model Rules
page 22- 25 paragraphs 1- 9 of the Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), December 2023 published by the OECD on 18 December 2023. page 14- 16 paragraph s4-13 and page 16 paragraphs 14-15 Commentary |
| 13(1)-(2) | Definition of Entity Art 10.1 OECD GloBE Model Rules
p. 14 paragraph 12 Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two) published by the OECD on 2 February 2023 |
| 13(3) | See Art 1.4 OECD GloBE Model Rules |
| 14 | Art 1.2 OECD GloBE Model Rules |
| 15 | Definition of a Group Entity Art 10.1 OECD GloBE Model Rules |
| 16 | Art 1.2 OECD GloBE Model Rules |
| 17 | Art 1.2 OECD GloBE Model Rules |
| 18(1) | Arts 1.2.3, 1.3.1 & 1.3.2 OECD GloBE Model Rules |
| 18(2) | Definition of Permanent Establishment Art 10.1 OECD GloBE Model Rules |
| 18(3) | Definition of Main Entity Art 10.1 OECD GloBE Model Rules |
| 18(4) | Arts 1.2.3 OECD GloBE Model Rules |
| 19(1) | Definition of a Permanent Establishment Art 10.1 OECD GloBE Model Rules |
| 19(2) | Definition of a Main Entity Art 10.1 OECD GloBE Model Rules |
| 20(1)-(3) | Arts 1.5.1 & 1.5.2 OECD GloBE Model Rules
page 26 paragraph 10 of the Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two) published by the OECD on 2 February 2023. |
| 20(4)-(6) | Art 1.5.3 OECD GloBE Model Rules |
| 21 | Art 1.3.3 OECD GloBE Model Rules
p.19 para 31 Commentary |
| 22 | Arts 1.5.1 & 1.5.2 OECD GloBE Model Rules
page 26 paragraph 10 of the Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two) published by the OECD on 2 February 2023. |
| 23 | Arts 1.5.1 & 1.5.2 OECD GloBE Model Rules
page 26 paragraph 10 of the Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two) published by the OECD on 2 February 2023. |
| 24 | Definition of a Real Estate Investment Vehicle Art 10.1 OECD GloBE Model Rules |
| 25 | No equivalent |
| 26 | Definition of JV and related definitions Art 10.1 OECD GloBE Model Rules |
| 27 | Definition of JV and related definitions Art 10.1 OECD GloBE Model Rules |
| 28 | No equivalent |
| 29 | No equivalent |
| 30 | No equivalent |
| 31 | No equivalent |
| 34 | Various definitions Art 10.1 OECD GloBE Model Rules |
| 35 | Definition of Material Competitive Distortion Art 10.1 OECD GloBE Model Rules |
| 36 | Definition of Five-Year Election Art 10.1 OECD GloBE Model Rules
Commentary page196 paragraphs 19-20 |
| 37 | Definition of Annual Election Art 10.1 OECD GloBE Model Rules |
| 38 | Definition of Ownership Interest Art 10.1.1 OECD GloBE Model Rules |
| 39 | No equivalent |
| 40 | Article 10.3.1 OECD GloBE Model Rules |
| 41 | Article 10.3.2 OECD GloBE Model Rules |
| 42 | Art 10.3.3 OECD GloBE Model Rules |
| 43 | Art 10.3.4 OECD GloBE Model Rules
page 223–225 paragraphs 195- 207 Commentary |
| 44 | Art 10.3.6 OECD GloBE Model Rules |
Consequential Bill
| Consequential Bill provision | OECD |
| 1 | No equivalent |
| 2(1) | No equivalent |
| 2(2) | No equivalent |
| 3 | No equivalent |
| Administrative Decisions (Judicial Review) Act 1977 | |
| Paragraph (e) of Schedule 1 | No equivalent |
| Income Tax Assessment Act 1936 | |
| Subsection 324(5) | No equivalent |
| Subsection 325(3) | No equivalent |
| Subsection 393(2) | No equivalent |
| Income Tax Assessment Act 1997 | |
| Section 12-5 | No equivalent |
| paragraph 25-5(1)(e) and (f) | No equivalent |
| Subsection 25-5(4) | No equivalent |
| Section 26-99C | No equivalent |
| Subsection 205-15(1) (table item 9) | No equivalent |
| Subsection 205-20(3B) | No equivalent |
| Subsection 205-30(1) (table item 14) | No equivalent |
| subsection 205-35(1B) | No equivalent |
| Subsection 205-35(2) | No equivalent |
| Paragraph 717-10(1)(c) | No equivalent |
| Subsection 770-10(6) | No equivalent |
| Subsection 770-135(3A) | No equivalent |
| Section 770-145 | No equivalent |
| Section 770-150 | No equivalent |
| paragraphs 830-10(1)(b) and (c) | No equivalent |
| Section 830-15 | No equivalent |
| Section 830-17 | No equivalent |
| Paragraph 832-130(7)(e) | No equivalent |
| Subsection 832-132(8) | No equivalent |
| Subsection 995-1(1)
Multiple definitions incorporating GloBE Rules definitions into Australian law. |
Definition of GloBE Information Return in Art 10.1 OECD GloBE Model Rules
Definition of Qualifying Competent Authority Agreement in Art 10.1 OECD GloBE Model Rules Definition of GloBE Implementation Framework in Art 10.1 OECD GloBE Model Rules Definition of Designated Filing Entity in Art 10.1 OECD GloBE Model Rules Definition of Designated Local Entity in Art 10.1 OECD GloBE Model Rules |
| International Tax Agreements Act 1953 | |
| Multiple amendments to International Tax Agreements Act 1953 | No equivalent, but see paragraph 2 Executive Summary Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two) published by the OECD on 2 February 2023 |
| Taxation Administration Act 1953 | |
| Subsection 8AAB(4) (table items 45BA and 45BB) | No equivalent |
| Paragraph 14ZW(1)(bg) | No equivalent |
| Paragraph 14ZW(1)(bgb) | No equivalent |
| Part 3-18 in Schedule 1 of the TAA
Reflects the administration of the Australian IIR/UTPR tax and Australian DMT tax |
|
| Subdivision 127-A
Sections 127-5 to 127-50 and 127-65 |
See GloBE Information Return in Chapter 10.1 OECD GloBE Model Rules in relation to section 127-5(3)
See Qualifying Competent Authority Agreement in Chapter 10.1 in relation to section 127-5(8) Arts 8.1.1, 8.1.2, 8.1.4, 8.1.5 & 8.1.7 OECD GloBE Model Rules Commentary pages:
|
| Section 127-60 | Arts 8.1.6 & 9.4 OECD GloBE Model Rules
Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), December 2023 published by the OECD on 18 December 2023
Commentary page:
|
| Subdivision 127-B
Sections 127-70 and 127-75 |
No equivalent |
| Subdivision 127-C | No equivalent |
| Subdivision 128-A | No equivalent |
| Subdivision 128-B | No equivalent |
| Subdivision 128-C | No equivalent |
| Transitional provision | Arts 8.1.6 and 9.4.1 OECD GloBE Model Rules
page 34 paragraph 9 Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), December 2023 published by the OECD on 18 December 2023 |
| Other TAA machinery amendments | |
| Paragraph 155-5(2)(ia) and (ib) in Schedule 1 | No equivalent |
| Subsection 155-15(1) in Schedule 1 (table items 6 and 7) | No equivalent |
| Subsection 250-10(2) in Schedule 1 (items 136AC to 136AF) | No equivalent |
| Sections 280-1, 280-50, 280-102E, 280-110(1), 284-27, paragraphs 284-75(2)(a), (b) and (d), subsections 284-80(1) (table items 3 and 4), 284-90(1) (table item 4), 284-90(1C), (3A) and (4)(b), 284-220(1)(d), 286-80(1)(b) and (4C), paragraphs 355-25(3) in Schedule 1 | No equivalent, but see Art 8.1.8 OECD GloBE Model Rules
page 184 paragraph 28 Commentary |
| Section 356-20 in Schedule 1 | No equivalent |
| paragraph 357-55(fg) and (fh) in Schedule 1 | No equivalent |
| subsection 359-35(2)(c) in Schedule 1 | No equivalent |
| Subdivision 382-C in Schedule 1 | No equivalent |
OECD GloBE Model Rules
| OECD GloBE Model Rules | Reference to domestic primary law |
| Article 1.1 Scope of the GloBE Rules | |
| 1.1.1 | Paragraph 12(3)(a) & subsection 12(1) of the Assessment Bill |
| 1.1.2 | Paragraph 12(3)(b) of the Assessment Bill |
| 1.1.3 | Legislation not required |
| Article 1.2 MNE Group and Group | |
| 1.2.1 | Subsection 14(1) of the Assessment Bill |
| 1.2.2 | Subsections 14(2)-(5) of the Assessment Bill |
| 1.2.3 | Subparagraph 15(1)(c)(i) of the Assessment Bill |
| Article 1.3 Constituent Entity | |
| 1.3.1 | Subsections 16(1), 17(1) and 18(4) of the Assessment Bill |
| 1.3.2 | Subsection 18(4)() of the Assessment Bill |
| 1.3.3 | Subsection 16(2) of the Assessment Bill |
| Article 1.4 Ultimate parent entity | |
| 1.4.1 | Subsection 13(3) of the Assessment Bill |
| Article 1.5 Excluded entity | |
| 1.5.1 | Section 20 of the Assessment Bill |
| 1.5.2 | Section 20 Assessment Bill |
| 1.5.3 | Section 20 of the Assessment Bill |
| Article 2.1 Application of the IIR | |
| 2.1.1 | Sections 6 and 7 of the Assessment Bill |
| 2.1.2 | Deferred to the Rules |
| 2.1.3 | Deferred to the Rules |
| 2.1.4 | Deferred to the Rules |
| 2.1.5 | Deferred to the Rules |
| 2.1.6 | Deferred to the Rules |
| Article 2.2 Allocation of Top-Up Tax under the IIR | |
| 2.2.1 | Deferred to the Rules |
| 2.2.2 | Deferred to the Rules |
| 2.2.3 | Deferred to the Rules |
| 2.2.4 | Deferred to the Rules |
| Article 2.3 IIR Offset Mechanism | |
| 2.3.1 | Deferred to the Rules |
| 2.3.2 | Deferred to the Rules |
| Article 2.4 Application of the UTPR | |
| 2.4.1 | Deferred to the Rules |
| 2.4.2 | Deferred to the Rules |
| 2.4.3 | Deferred to the Rules |
| Article 2.5 UTPR top-up tax amount | |
| 2.5.1 | Deferred to the Rules |
| 2.5.2 | Deferred to the Rules |
| 2.5.3 | Deferred to the Rules |
| Article 2.6 Allocation of top-up tax for the UTPR | |
| 2.6.1 | Deferred to the Rules |
| 2.6.2 | Deferred to the Rules |
| 2.6.3 | Deferred to the Rules |
| 2.6.4 | Deferred to the Rules |
| Article 3.1 Financial Accounts | |
| 3.1.1 | Deferred to the Rules |
| 3.1.2 | Deferred to the Rules |
| 3.1.3 | Deferred to the Rules |
| Article 3.2 Adjustments to determine GloBE Income or Loss | |
| 3.2.1 | Deferred to the Rules |
| 3.2.2 | Deferred to the Rules |
| 3.2.3 | Deferred to the Rules |
| 3.2.4 | Deferred to the Rules |
| 3.2.5 | Deferred to the Rules |
| 3.2.6 | Deferred to the Rules |
| 3.2.7 | Deferred to the Rules |
| 3.2.8 | Deferred to the Rules |
| 3.2.9 | Deferred to the Rules |
| 3.2.10 | Deferred to the Rules |
| 3.2.11 | Deferred to the Rules |
| Article 3.3 Shipping Income | |
| 3.3.1 | Deferred to the Rules |
| 3.3.2 | Deferred to the Rules |
| 3.3.3 | Deferred to the Rules |
| 3.3.4 | Deferred to the Rules |
| 3.3.5 | Deferred to the Rules |
| 3.3.6 | Deferred to the Rules |
| Article 3.4 Allocation of Income or Loss between a Main Entity and a Permanent Establishment | |
| 3.4.1 | Deferred to the Rules |
| 3.4.2 | Deferred to the Rules |
| 3.4.3 | Deferred to the Rules |
| 3.4.4 | Deferred to the Rules |
| 3.4.5 | Deferred to the Rules |
| Article 3.5 Allocation rules for a flow through entity | |
| 3.5.1 | Deferred to the Rules |
| 3.5.2 | Deferred to the Rules |
| 3.5.3 | Deferred to the Rules |
| 3.5.4 | Deferred to the Rules |
| 3.5.5 | Deferred to the Rules |
| Article 4.1 Adjusted covered taxes | |
| Art.4.1 | Deferred to the Rules |
| 4.1.1 | Deferred to the Rules |
| 4.1.2 | Deferred to the Rules |
| 4.1.3 | Deferred to the Rules |
| 4.1.4 | Deferred to the Rules |
| 4.1.5 | Deferred to the Rules |
| Article 4.2 Definition of covered taxes | |
| 4.2.1 | Deferred to the Rules |
| 4.2.2 | Deferred to the Rules |
| Article 4.3 Allocation of Covered Taxes from one Constituent Entity to another Constituent Entity | |
| 4.3.1 | Deferred to the Rules |
| 4.3.2 | Deferred to the Rules |
| 4.3.3 | Deferred to the Rules |
| 4.3.4 | Deferred to the Rules |
| Article 4.4 Mechanism to address temporary differences | |
| 4.4.1 | Deferred to the Rules |
| 4.4.2 | Deferred to the Rules |
| 4.4.3 | Deferred to the Rules |
| 4.4.4 | Deferred to the Rules |
| 4.4.5 | Deferred to the Rules |
| 4.4.6 | Deferred to the Rules |
| 4.4.7 | Deferred to the Rules |
| Article 4.5 The GloBE Loss Election | |
| 4.5.1 | Deferred to the Rules |
| 4.5.2 | Deferred to the Rules |
| 4.5.3 | Deferred to the Rules |
| 4.5.4 | Deferred to the Rules |
| 4.5.5 | Deferred to the Rules |
| 4.5.6 | Deferred to the Rules |
| Article 4.6 Post-filing Adjustments and Tax Rate Changes | |
| 4.6.1 | Deferred to the Rules |
| 4.6.2 | Deferred to the Rules |
| 4.6.3 | Deferred to the Rules |
| 4.6.4 | Deferred to the Rules |
| Article 5.1 Determination of Effective Tax Rate | |
| 5.1.1 | Deferred to the Rules |
| 5.1.2 | Deferred to the Rules |
| 5.1.3 | Deferred to the Rules |
| Article 5.2 Top-up tax | |
| 5.2.1 | Deferred to the Rules |
| 5.2.2 | Deferred to the Rules |
| 5.2.3 | Deferred to the Rules |
| 5.2.4 | Deferred to the Rules |
| 5.2.5 | Deferred to the Rules |
| Article 5.3 Substance-based Income Exclusion | |
| 5.3.1 | Deferred to the Rules |
| 5.3.2 | Deferred to the Rules |
| 5.3.3 | Deferred to the Rules |
| 5.3.4 | Deferred to the Rules |
| 5.3.5 | Deferred to the Rules |
| 5.3.6 | Deferred to the Rules |
| 5.3.7 | Deferred to the Rules |
| Article 5.4 Additional Current Top-up Tax | |
| 5.4.1 | Deferred to the Rules |
| 5.4.2 | Deferred to the Rules |
| 5.4.3 | Deferred to the Rules |
| 5.4.4 | Deferred to the Rules |
| Article 5.5 De minimis exclusion | |
| 5.5.1 | Deferred to the Rules |
| 5.5.2 | Deferred to the Rules |
| 5.5.3 | Deferred to the Rules |
| 5.5.4 | Deferred to the Rules |
| Article 5.6 Minority-Owned Constituent Entities | |
| 5.6.1 | Deferred to the Rules |
| 5.6.2 | Deferred to the Rules |
| Article 6.1 Application of Consolidated Revenue Threshold to Group Mergers and Demergers | |
| 6.1.1 | Deferred to the Rules |
| 6.1.2 | Deferred to the Rules |
| 6.1.3 | Deferred to the Rules |
| Article 6.2 Constituent Entities joining and leaving an MNE Group | |
| 6.2.1 | Deferred to the Rules |
| 6.2.2 | Deferred to the Rules |
| Article 6.3 Transfer of Assets and Liabilities | |
| 6.3.1 | Deferred to the Rules |
| 6.3.2 | Deferred to the Rules |
| 6.3.3 | Deferred to the Rules |
| 6.3.4 | Deferred to the Rules |
| Article 6.4 Joint ventures | |
| 6.4.1 | Deferred to the Rules |
| Article 6.5 Multi-parented MNE groups | |
| 6.5.1 | Section 28 - defers to the Rules |
| Article 7.1 Ultimate Parent Entity that is a Flow-through Entity | |
| 7.1.1 | Deferred to the Rules |
| 7.1.2 | Deferred to the Rules |
| 7.1.3 | Deferred to the Rules |
| 7.1.4 | Deferred to the Rules |
| Article 7.2 Ultimate Parent Entity subject to Deductible Dividend Regime | |
| 7.2.1 | Deferred to the Rules |
| 7.2.2 | Deferred to the Rules |
| 7.2.3 | Deferred to the Rules |
| 7.2.4 | Deferred to the Rules |
| Article 7.3 Eligible Distribution Tax Systems | |
| 7.3.1 | Deferred to the Rules |
| 7.3.2 | Deferred to the Rules |
| 7.3.3 | Deferred to the Rules |
| 7.3.4 | Deferred to the Rules |
| 7.3.5 | Deferred to the Rules |
| 7.3.6 | Deferred to the Rules |
| 7.3.7 | Deferred to the Rules |
| 7.3.8 | Deferred to the Rules |
| Article 7.4 Effective Tax Rate Computation for Investment Entities | |
| 7.4.1 | Deferred to the Rules |
| 7.4.2 | Deferred to the Rules |
| 7.4.3 | Deferred to the Rules |
| 7.4.4 | Deferred to the Rules |
| 7.4.5 | Deferred to the Rules |
| 7.4.6 | Deferred to the Rules |
| Article 7.5 Investment entity tax transparency election | |
| 7.5.1 | Deferred to the Rules |
| 7.5.2 | Deferred to the Rules |
| Art.7.6 Taxable Distribution Method Election | |
| 7.6.1 | Deferred to the Rules |
| 7.6.2 | Deferred to the Rules |
| 7.6.3 | Deferred to the Rules |
| 7.6.4 | Deferred to the Rules |
| 7.6.5 | Deferred to the Rules |
| 7.6.6 | Deferred to the Rules |
| Article 8.1 Filing obligation | |
| 8.1.1 | Subdivision 127-A in Schedule 1 of the TAA |
| 8.1.2 | Subdivision 127-A in Schedule 1 of the TAA |
| 8.1.3 | Subdivision 127-A in Schedule 1 of the TAA |
| 8.1.4 | Subdivision 127-A in Schedule 1 of the TAA |
| 8.1.5 | Subdivision 127-A in Schedule 1 of the TAA |
| 8.1.6 | Subdivision 127-A in Schedule 1 of the TAA |
| 8.1.7 | Subdivision 127-A in Schedule 1 of the TAA |
| 8.1.8 | sections 284-75, 284-90 and 355-25 in Schedule 1 of the TAA |
| Article 8.2 Safe Harbour Rules | |
| 8.2.1 | Deferred to the Rules |
| 8.2.2 | Deferred to the Rules |
| Article 8.3 Administrative Guidance | |
| 8.3.1 | Part 4 of the Assessment Bill
Section (3) of the Assessment Bill |
| Article 9.1 Tax attributes upon transition | |
| 9.1.1 | Deferred to the Rules |
| 9.1.2 | Deferred to the Rules |
| 9.1.3 | Deferred to the Rules |
| Article 9.2 Transitional relief for the substance-based income exclusion | |
| 9.2.1 | Deferred to the Rules |
| 9.2.2 | Deferred to the Rules |
| Article 9.3 Exclusion from the UTPR of MNE Groups in the initial phase of their international activity | |
| 9.3.1 | Deferred to the Rules |
| 9.3.2 | Deferred to the Rules |
| 9.3.3 | Deferred to the Rules |
| 9.3.4 | Deferred to the Rules |
| 9.3.5 | Deferred to the Rules |
| Article 9.4 Transitional relief for filing obligations | |
| 9.4.1 | Subsection 127-60 in Schedule 1 of the TAA and transitional Provision. |
| Article 10.1 Defined terms | |
| 10.1.1 | Defined terms contained in section 34 of the Assessment Bill and section 995-1 of the ITAA 1997.
Some definitions are deferred to the Rules. |
| Article 10.2 Definitions of flow-through entity, tax transparent entity, reverse hybrid entity and hybrid entity | |
| 10.2.1 | Deferred to the Rules |
| 10.2.2 | Deferred to the Rules |
| 10.2.3 | Deferred to the Rules |
| 10.2.4 | Deferred to the Rules |
| Article 10.3 Location of an entity and permanent establishment | |
| 10.3.1 | Section 40 of the Assessment Bill |
| 10.3.2 | Section 41 of the Assessment Bill |
| 10.3.3 | Section 42 of the Assessment Bill |
| 10.3.4 | Section 43 of the Assessment Bill |
| 10.3.5 | Deferred to the Rules |
| 10.3.6 | Section 44 of the Assessment Bill |