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

CHAPTER 1 - PRELIMINARY ETC  

PART 1-2 - EXCLUDED ENTITIES  

SECTION 1-20   EXCLUDED ENTITIES  

1-20(1)    
For the purposes of paragraph 20(1)(h) of the Act, the following Entities are prescribed:

(a)    an Excluded Exempt Income Entity;

(b)    an Excluded Non-Profit Subsidiary.

1-20(2)    
An Entity is an Excluded Exempt Income Entity if:

(a)    at least 85% of the value of the Entity is owned (directly or through a chain of Excluded Entities) by one or more of the following (other than a Pension Services Entity):

(i) an Excluded Entity under paragraph 20(1)(a) , (b) , (c) , (d) , (e) or (f) of the Act;

(ii) if the Entity is an Ultimate Parent Entity - an Investment Fund or a Real Estate Investment Vehicle; and

(b)    substantially all of the Entity ' s income is Excluded Dividends or Excluded Equity Gain or Loss that is excluded from the computation of GloBE Income or Loss in accordance with section 3-20 or 3-30 of this instrument.

1-20(3)    
An Entity is an Excluded Non-Profit Subsidiary if:

(a)    100% of the value of the Entity is owned (directly or indirectly) by one or more Non-profit Organisations; and

(b)    the sum of the revenue of all Group Entities of the MNE Group of which the Entity is a Group Entity (other than such revenue as is attributable to a Group Entity of the MNE Group that is a Non-profit Organisation, an Excluded Service Entity or an Excluded Exempt Income Entity):

(i) does not exceed the MNE Group ' s GloBE Threshold for the Fiscal Year; and

(ii) is less than 25% of the total revenue of the MNE Group.