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

CHAPTER 3 - COMPUTATION OF GloBE INCOME OR LOSS  

PART 3-4 - ALLOCATION OF INCOME OR LOSS BETWEEN A MAIN ENTITY AND A PERMANENT ESTABLISHMENT  

SECTION 3-250   COMPUTING GloBE INCOME OR LOSS OF THE MAIN ENTITY IN RESPECT OF A PERMANENT ESTABLISHMENT  

3-250(1)    
Subject to subsection (2) , in computing the GloBE Income or Loss of the Main Entity in respect of a Permanent Establishment, do not take into account the Financial Accounting Net Income or Loss of the Permanent Establishment.

3-250(2)    
If, disregarding this subsection, a Permanent Establishment would have a GloBE Loss for a Fiscal Year:

(a)    in computing the GloBE Income or Loss of the Main Entity in respect of the Permanent Establishment for the Fiscal Year, treat the amount of the GloBE Loss (the loss amount ) as an expense of the Main Entity (and not of the Permanent Establishment), to the extent that the loss amount:

(i) is treated as an expense in computing the Main Entity ' s taxable income in the jurisdiction in which the Main Entity is located; and

(ii) is not set off against an item of income that is subject to tax under the laws of both the jurisdiction in which the Permanent Establishment is located and the jurisdiction in which the Main Entity is located; and

(b)    where, disregarding this paragraph, the Permanent Establishment would have GloBE Income for a subsequent Fiscal Year, treat the lesser of the following as GloBE Income of the Main Entity (and not of the Permanent Establishment):

(i) the amount of the GloBE Income;

(ii) the loss amount, to the extent that it is treated under paragraph (a) as an expense of the Main Entity (and not of the Permanent Establishment), reduced by amounts (if any) treated as GloBE Income of the Main Entity under a previous operation of this paragraph.

3-250(3)    
In computing the extent to which the loss amount is treated under paragraph (2)(a) as an expense of the Main Entity (and not of the Permanent Establishment), disregard so much of the loss amount as is offset, under the law of the jurisdiction in which the Main Entity is located, by an amount in respect of GloBE Income for the Fiscal Year of another Permanent Establishment in respect of the Main Entity.