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

CHAPTER 8 - ADMINISTRATION  

PART 8-2 - SAFE HARBOURS  

Division 3 - Simplified Calculations Safe Harbour  

Subdivision C - NMCE simplified calculations  

SECTION 8-185  

8-185   MEANING OF NON-MATERIAL CONSTITUENT ENTITY (OR NMCE)  
A Non-material Constituent Entity (or NMCE ) is a Constituent Entity of an MNE Group for a Fiscal Year if:

(a)    where it is an Entity:

(i) the Entity is not consolidated on a line-by-line basis in the Consolidated Financial Statements of the Ultimate Parent Entity of the MNE Group for the Fiscal Year solely on size or materiality grounds; and

(ii) those Consolidated Financial Statements are described in paragraph (a) or (c) of the definition of Consolidated Financial Statements in section 34 of the Act; and

(iii) those Consolidated Financial Statements are externally audited; and

(iv) the external audit was performed in accordance with the auditing standards issued by the auditing standards board in the jurisdiction in which the Ultimate Parent Entity of the MNE Group is located; and

(v) the report from the external audit is not qualified in a respect that is relevant to the matter mentioned in subparagraph (i) ; and

(vi) if the Entity ' s Total Revenue for the Fiscal Year exceeds 50 million Euros - its financial accounts are prepared in accordance with an Acceptable Financial Accounting Standard or an Authorised Financial Accounting Standard; and

(b)    where it is a Permanent Establishment - the Main Entity in respect of the Permanent Establishment is an NMCE for the Fiscal Year under paragraph (a) of this section.