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

CHAPTER 10 - DEFINITIONS  

PART 10-3 - LOCATION OF DUAL-LOCATED ENTITIES  

SECTION 10-65   DUAL-LOCATED PARENT ENTITY LOCATED IN NON-IIR JURISDICTION  

10-65(1)    
This section applies if:

(a)    disregarding section 43 of the Act, a Parent Entity of an MNE Group is located in more than one jurisdiction (each of which is a relevant jurisdiction ) for a Fiscal Year under section 40 of the Act; and

(b)    under subsection 10-60(2) or (3) of this instrument, the Parent Entity is taken to be located in one of those jurisdictions (the location jurisdiction ) for the Fiscal Year; and

(c)    the Parent Entity is not required, under the laws of the location jurisdiction, to apply a Qualified IIR for the Fiscal Year.

10-65(2)    
If:

(a)    Australia is a relevant jurisdiction and is not the location jurisdiction; and

(b)    if Australia and the location jurisdiction are party to a Tax Treaty:

(i) the Parent Entity is treated as a resident of the location jurisdiction for purposes of the Tax Treaty; and

(ii) the location jurisdiction does not apply a Qualified IIR; and

(c)    Australia is not restricted from taxing the Parent Entity under the Tax Treaty for income tax purposes;

treat the Parent Entity as being located in Australia for the purposes of paragraph 2-5(1)(a) of this instrument.