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

CHAPTER 8 - ADMINISTRATION  

PART 8-2 - SAFE HARBOURS  

Division 4 - Qualified Domestic Minimum Top-up Tax (QDMTT) Safe Harbour  

SECTION 8-210   DISQUALIFICATION FROM ELECTION - SWITCH-OFF RULE  

8-210(1)    
Despite subsection 8-200(3) , a Filing Constituent Entity for the MNE Group may not make an election for the MNE Group that applies to a Fiscal Year and a jurisdiction if subsection (2) , (3) , (4) , (6) , (7) , (8) or (9) of this section applies.

Flow-through Entity UPEs not required to apply QDMTT

8-210(2)    
This subsection applies if:

(a)    the Ultimate Parent Entity of the MNE Group meets the following conditions:

(i) it is located in the jurisdiction;

(ii) it is a Flow-through Entity; and

(b)    an Ultimate Parent Entity that meets those conditions is not required to apply the Qualified Domestic Minimum Top-up Tax of the jurisdiction for the Fiscal Year in any circumstance.

Flow-through Entity Constituent Entities not required to apply QDMTT

8-210(3)    
This subsection applies if:

(a)    a Constituent Entity of the MNE Group meets the following conditions:

(i) it is located in the jurisdiction;

(ii) it is not an Ultimate Parent Entity;

(iii) it is a Flow-through Entity; and

(b)    a Constituent Entity of an MNE Group that meets those conditions is not required to apply the Qualified Domestic Minimum Top-up Tax of the jurisdiction for the Fiscal Year in any circumstance.

OECD Securitisation Entities not required to apply QDMTT

8-210(4)    
This subsection applies if:

(a)    a Constituent Entity of the MNE Group meets the following conditions:

(i) it is located in the jurisdiction;

(ii) it is an OECD Securitisation Entity; and

(b)    a Constituent Entity of an MNE Group that meets those conditions is not required to apply the Qualified Domestic Minimum Top-up Tax of the jurisdiction for the Fiscal Year in any circumstance (including where liability under the Qualified Domestic Minimum Top-up Tax in respect of the Constituent Entity is imposed on other Constituent Entities of the MNE Group).

8-210(5)    
However, subsection (4) does not apply if, under the Qualified Domestic Minimum Top-up Tax of the jurisdiction, the liability for the Fiscal Year in respect of a Constituent Entity of an MNE Group that meets those conditions is:

(a)    imposed on one or more other Constituent Entities of the MNE Group that are not OECD Securitisation Entities; or

(b)    if there are no other Constituent Entities of the MNE Group located in the jurisdiction - imposed on the Constituent Entity.

JV entities not required to apply QDMTT

8-210(6)    
This subsection applies if:

(a)    the MNE Group is a separate MNE Group mentioned in subsection 6-75(2) (Joint Ventures); and

(b)    the Joint Venture of the MNE Group, or a JV Subsidiary of the Joint Venture of the MNE Group, is located in the jurisdiction; and

(c)    a Joint Venture of an MNE Group, or a JV Subsidiary of a Joint Venture of an MNE Group, that is located in the jurisdiction is not required to apply the Qualified Domestic Minimum Top-up Tax of the jurisdiction for the Fiscal Year in any circumstance (including where liability under the Qualified Domestic Minimum Top-up Tax in respect of the Joint Venture or the JV Subsidiary is imposed on Constituent Entities of the MNE Group).

Investment Entities not required to apply QDMTT

8-210(7)    
This subsection applies if:

(a)    the MNE Group is an MNE Group mentioned in subsection 7-100(1) (Investment Entities); and

(b)    a Constituent Entity of the MNE Group meets the following conditions:

(i) it is located in the jurisdiction;

(ii) it is an Investment Entity or an Insurance Investment Entity; and

(c)    a Constituent Entity of an MNE Group that meets those conditions is not required to apply the Qualified Domestic Minimum Top-up Tax of the jurisdiction for the Fiscal Year in any circumstance.

Initial phase of international activity year

8-210(8)    
This subsection applies if:

(a)    the Qualified Domestic Minimum Top-up Tax of the jurisdiction provides that it does not apply to an MNE Group and a Fiscal Year in relation to which subsection 9-40(1) applies; and

(b)    that provision is not limited in application to circumstances where the Constituent Entities of the MNE Group located in the jurisdiction are not subject to a Qualified IIR applied by another jurisdiction; and

(c)    that provision applies to the MNE Group and the Fiscal Year mentioned in subsection (1) .

Other specified restrictions

8-210(9)    
This subsection applies if:

(a)    the jurisdiction has a Qualified Domestic Minimum Top-up Tax for a Fiscal Year; and

(b)    the jurisdiction is specified in a determination under subsection 8-200(2) ; and

(c)    a determination under subsection (10) of this section specifies the jurisdiction and a restriction of the jurisdiction ' s Qualified Domestic Minimum Top-up Tax; and

(d)    the restriction applies to the MNE Group for the Fiscal Year.

8-210(10)    
The Minister may, by legislative instrument, make a determination specifying:

(a)    a jurisdiction; and

(b)    a restriction of the jurisdiction ' s Qualified Domestic Minimum Top-up Tax.