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

CHAPTER 2 - LIABILITY AMOUNTS  

PART 2-4 - DOMESTIC TOP-UP TAX AMOUNT  

SECTION 2-30   AMOUNT OF DOMESTIC TOP-UP TAX AMOUNT  
Constituent Entities generally and Permanent Establishments

2-30(1)    
For the purposes of subsection 2-25(2) or (4) , the amount of the Domestic Top-up Tax Amount is equal to the amount of the Top-up Tax mentioned in that subsection, computed in accordance with the principles set out in section 2-35 .

Joint Ventures and JV Subsidiaries

2-30(2)    
For the purposes of subsection 2-25(6) or (8) , the amount of the Domestic Top-up Tax Amount is equal to the amount of the Top-up Tax mentioned in that subsection, computed in accordance with the principles set out in sections 2-35 and 6-75.

2-30(3)    
Subsection (4) applies if:

(a)    any of the following circumstances exist:

(i) a Joint Venture of an MNE Group is also a Joint Venture of another MNE Group;

(ii) a JV Subsidiary of a Joint Venture of an MNE Group is also a JV Subsidiary of a Joint Venture of another MNE Group; and

(b)    as a result of those circumstances, subsection 2-25(6) or (8) applies to the Joint Venture, or the JV Subsidiary, for a Fiscal Year, in relation to each of the MNE Groups.

2-30(4)    
Treat the reference in subsection (2) to " the amount of the Top-up Tax " as instead being a reference to " half the amount of the Top-up Tax " .

Note:

This means that the Joint Venture or the JV Subsidiary (or if subsection 2-25(8) applies, the Main Entity) has a Domestic Top-up Tax Amount for the Fiscal Year of half the amount of the Top-up Tax, in relation to each MNE Group.