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

CHAPTER 2 - LIABILITY AMOUNTS  

PART 2-6 - ALLOCATION OF TOP-UP TAX FOR THE UTPR  

SECTION 2-95   EMPLOYEES AND THE NET BOOK VALUE OF TANGIBLE ASSETS ALLOCATED FROM FLOW-THROUGH ENTITY  

2-95(1)    
For the purposes of sections 2-65 and 2-70 , if a Constituent Entity of an MNE Group is a Flow-through Entity that is a Stateless Constituent Entity:

(a)    allocate, in accordance with subsection (2) , the employees and the Net Book Value of Tangible Assets of the Flow-through Entity to the Constituent Entities (if any) of the MNE Group that are located in the jurisdiction in which the Flow-through Entity was created (each of which is a receiving Constituent Entity ); and

(b)    to the extent that the employees and the Net Book Value of Tangible Assets of the Flow-through Entity are not allocated under paragraph (a) - disregard the employees and the Net Book Value of Tangible Assets.

2-95(2)    
The number of employees of the Flow-through Entity, or the Net Book Value of Tangible Assets of the Flow-through Entity, that are allocated under paragraph (1)(a) to a receiving Constituent Entity is:

(a)    the number of those employees, or that Net Book Value of Tangible Assets;

multiplied by:

(b)    the percentage computed under the formula in subsection 2-70(3) in respect of the receiving Constituent Entity.

2-95(3)    
If the Flow-through Entity is a Main Entity in respect of a Permanent Establishment, subsection (1) operates subject to section 2-90 .