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

CHAPTER 4 - COMPUTATION OF ADJUSTED COVERED TAXES  

PART 4-3 - ALLOCATION OF COVERED TAXES FROM ONE CONSTITUENT ENTITY TO ANOTHER CONSTITUENT ENTITY  

SECTION 4-80   ALLOCATION OF AMOUNTS FROM PERMANENT ESTABLISHMENT TO MAIN ENTITY  

4-80(1)    
This section applies if subsection 3-250(2) (Allocation of GloBE Loss from Permanent Establishment to Main Entity) applies in relation to a Permanent Establishment and the Main Entity in respect of the Permanent Establishment.

4-80(2)    
In computing the Adjusted Covered Taxes of the Permanent Establishment and the Main Entity, disregard a deferred tax asset if:

(a)    it is attributable to a tax loss arising in the jurisdiction in which the Permanent Establishment is located; and

(b)    the loss is treated as an expense of the Main Entity under paragraph 3-250(2)(a) .

4-80(3)    
If:

(a)    an amount is treated as GloBE Income of the Main Entity in respect of a Permanent Establishment under paragraph 3-250(2)(b) ; and

(b)    Covered Taxes arise in the jurisdiction in which the Permanent Establishment is located, and are associated with the income amount mentioned in that paragraph;

treat those Covered Taxes as Covered Taxes of the Main Entity (but not beyond the amount computed by multiplying that income by the highest corporate tax rate on ordinary income in the jurisdiction where the Main Entity is located).