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

CHAPTER 4 - COMPUTATION OF ADJUSTED COVERED TAXES  

PART 4-5 - THE GloBE LOSS ELECTION  

Note:

SECTION 4-120   GloBE LOSS ELECTION  

4-120(1)    
A GloBE Loss Election is:

(a)    an election under subsection (2) (a GloBE Loss Election for an MNE Group); or

(b)    an election under subsection 4-130(1) (a GloBE Loss Election for an Ultimate Parent Entity).

GloBE Loss Election for an MNE Group

4-120(2)    
A Filing Constituent Entity for an MNE Group may make an election for the MNE Group under this subsection that applies to a specified jurisdiction if:

(a)    the jurisdiction does not have an Eligible Distribution Tax System; and

(b)    the election is made in the first GloBE Information Return of the MNE Group for the first Fiscal Year in respect of which the following conditions are met:

(i) a Constituent Entity of the MNE Group is located in the jurisdiction;

(ii) subsection 8-10(1) (Transitional CbCR Safe Harbour) does not apply in relation to the MNE Group, the jurisdiction and the Fiscal Year.

4-120(3)    
Unless the GloBE Loss Election for the MNE Group under subsection (2) is revoked, it applies to:

(a)    the Fiscal Year for which the GloBE Information Return for the Applicable MNE Group that records the election is filed by the Filing Constituent Entity; and

(b)    each subsequent Fiscal Year.

Revocation

4-120(4)    
A Filing Constituent Entity for the MNE Group may revoke a GloBE Loss Election for the MNE Group made under subsection (2) of this section.

4-120(5)    
If the Filing Constituent Entity revokes a GloBE Loss Election for the MNE Group made under subsection (2) , the election does not apply to:

(a)    the Fiscal Year for which the GloBE Information Return for the Applicable MNE Group that records the revocation is filed by the Filing Constituent Entity; and

(b)    each subsequent Fiscal Year.