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

CHAPTER 8 - ADMINISTRATION AND SAFE HARBOURS  

PART 8-2 - SAFE HARBOURS  

Division 5 - Transitional UTPR Safe Harbour  

SECTION 8-225   TRANSITIONAL UTPR SAFE HARBOUR  

8-225(1)    
Subsection (2) applies if an election for an MNE Group under subsection (3) applies to a Fiscal Year and the jurisdiction in which the Ultimate Parent Entity of the MNE Group is located (the UPE jurisdiction ).

8-225(2)    
In computing the Total UTPR Top-up Tax Amount for the MNE Group for the Fiscal Year, treat the following as being zero:

(a)    the Top-up Tax for the Fiscal Year of each Low-Taxed Constituent Entity for the Fiscal Year of the MNE Group that is located in the UPE jurisdiction;

(b)    if there are one or more Joint Ventures of the MNE Group - the Ultimate Parent Entity ' s Allocable Share of the Top-up Tax of each Joint Venture, and of each of its JV Subsidiaries (if any), that is located in the UPE jurisdiction.

Election

8-225(3)    
A Filing Constituent Entity for an MNE Group may make an election for the MNE Group under this subsection that applies to the Fiscal Year and the UPE jurisdiction if:

(a)    the Fiscal Year:

(i) does not exceed 12 months; and

(ii) starts on or before 31 December 2025; and

(iii) ends before 31 December 2026; and

(b)    the UPE jurisdiction has a corporate income tax that applies at a rate of at least 20%.

8-225(4)    
An election under subsection (3) is an Annual Election.