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 4-130   GloBE LOSS ELECTION FOR AN ULTIMATE PARENT ENTITY  

4-130(1)    
A Filing Constituent Entity for an MNE Group may make an election for the Ultimate Parent Entity of an MNE Group under this subsection if:

(a)    the Ultimate Parent Entity is a Flow-through Entity; and

(b)    the jurisdiction in which it is located does not have an Eligible Distribution Tax System; and

(c)    the election is made in the first GloBE Information Return of the MNE Group for the first Fiscal Year in respect of which subsection 8-10(1) (Transitional CbCR Safe Harbour) does not apply in relation to the MNE Group, the jurisdiction and the Fiscal Year.

4-130(2)    
Unless the GloBE Loss Election for the Ultimate Parent Entity made under subsection (1) 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

4-130(3)    
A Filing Constituent Entity for the MNE Group may revoke the GloBE Loss Election for the Ultimate Parent Entity made under subsection (1) .

4-130(4)    
If the Filing Constituent Entity revokes a GloBE Loss Election for the Ultimate Parent Entity made under subsection (1) , 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.