Taxation (Multinational - Global and Domestic Minimum Tax) Act 2024

PART 3 - CORE GROUP AND ENTITY CONCEPTS  

Division 1 - Groups, Entities and Permanent Establishments  

SECTION 18   GROUPS - STRUCTURE WITH PERMANENT ESTABLISHMENT  

18(1)    
This section applies if an Entity that is located in a jurisdiction is a Main Entity in respect of one or more Permanent Establishments that are located in other jurisdictions.

18(2)    
For the purposes of this Act:

(a)    each of those Permanent Establishments is taken to be separate from the Main Entity and from each other; and

(b)    the Main Entity is taken to hold a Controlling Interest in each of those Permanent Establishments.

Note:

The Main Entity is taken to hold a Direct Ownership Interest in each of those Permanent Establishments: see subsection 38(4) .

18(3)    
If the Entity is a Group Entity of a Group under subsection 17(1) and is not an Excluded Entity, the Main Entity and each of those Permanent Establishments is a Constituent Entity of the Group.

18(4)    
If the Entity is not a Group Entity of a Group under subsection 17(1) :

(a)    the Entity is a Group under this paragraph and a Group Entity of the Group; and

(b)    where the Entity is not an Excluded Entity - the Main Entity and each of those Permanent Establishments is a Constituent Entity of the Group; and

(c)    the Main Entity is the Ultimate Parent Entity of the Group.

Note:

For the purposes of this section, a Governmental Entity that meets the criterion in subparagraph 21(1)(b)(ii) (a sovereign wealth fund) is treated as not being an Entity: see subsection 21(2) .