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

CHAPTER 3 - COMPUTATION OF GloBE INCOME OR LOSS  

PART 3-2 - ADJUSTMENTS TO DETERMINE GloBE INCOME OR LOSS  

Division 2 - Other Article 3.2 adjustments  

SECTION 3-130   MEANING OF MARKETABLE TRANSFERABLE TAX CREDIT  

3-130(1)    
A Marketable Transferable Tax Credit means a tax credit that:

(a)    can be used by the holder of the tax credit to reduce its liability for a Covered Tax in the jurisdiction that issued the tax credit; and

(b)    meets:

(i) the requirement in subsection (3) or (4) (Legal Transferability Standard); and

(ii) the requirement in subsection (5) or (6) (Marketability Standard).

Marketable Transferable Tax Credit that is also Qualified Refundable Tax Credit

3-130(2)    
However, for the purposes of this instrument, treat a tax credit as not being a Marketable Transferable Tax Credit to the extent that it is also Qualified Refundable Tax Credit.

Legal Transferability Standard

3-130(3)    
A tax credit meets the requirement in this subsection if:

(a)    the tax credit was originally granted to a person (the Originator ); and

(b)    the Originator is the holder of the tax credit; and

(c)    the Originator can transfer the credit to an unrelated party:

(i) in the Fiscal Year in which the Originator first satisfies the eligibility criteria for the credit (the Origination Year ); or

(ii) within 15 months of the end of the Origination Year.

3-130(4)    
A tax credit meets the requirement in this subsection if:

(a)    the tax credit is held by a purchaser; and

(b)    the purchaser can transfer the tax credit to an unrelated party in the Fiscal Year in which it purchased the tax credit; and

(c)    the purchaser is not subject to more stringent legal restrictions on transfer of the tax credit than the person to whom the tax credit was originally granted.

Marketability Standard

3-130(5)    
A tax credit meets the requirement in this subsection if:

(a)    the tax credit meets the requirement in subsection (3) ; and

(b)    within 15 months of the end of the Fiscal Year in which the Originator first satisfies the eligibility criteria for the credit (the Origination Year ), either:

(i) if the tax credit has been transferred to an unrelated party of the Originator - the transfer price of the tax credit equals or exceeds its Marketable Price Floor; or

(ii) if the tax credit has not been transferred, or has been transferred to a related party - similar tax credits have been traded between unrelated parties at a price that equals or exceeds its Marketable Price Floor.

3-130(6)    
A tax credit meets the requirement in this subsection if:

(a)    the tax credit meets the requirement in subsection (4) ; and

(b)    the purchaser acquired the tax credit from an unrelated party at a price that equals or exceeds its Marketable Price Floor.

Related parties

3-130(7)    
For the purposes of this section, 2 Entities are related parties of each other if:

(a)    one of the Entities owns, directly or indirectly:

(i) at least 50% of the beneficial interest in the other Entity; or

(ii) if the other Entity is a company - at least 50% of the aggregate vote and value of the other Entity ' s shares; or

(b)    another Entity owns, directly or indirectly, at least 50% of the beneficial interest in each of the 2 Entities; or

(c)    if the 2 Entities are companies - another Entity owns, directly or indirectly, at least 50% of the aggregate vote and value of the shares in each of the 2 Entities; or

(d)    if one of the 2 Entities is a company - another Entity owns, directly or indirectly:

(i) at least 50% of the aggregate vote and value of the shares in the Entity that is a company; and

(ii) at least 50% of the beneficial interest in the other Entity; or

(e)    based on all the relevant facts and circumstances:

(i) one of the Entities controls the other Entity; or

(ii) one or more other Entities or individuals control both of the Entities.