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

CHAPTER 8 - ADMINISTRATION  

PART 8-2 - SAFE HARBOURS  

Division 2 - Transitional CbCR Safe Harbour  

Subdivision B - De minimis test  

SECTION 8-30   MEANING OF PROFIT (LOSS) BEFORE INCOME TAX  

8-30(1)    
An MNE Group ' s Profit (Loss) before Income Tax , for a jurisdiction for a Fiscal Year, means the MNE Group ' s profit or loss before income tax for the jurisdiction for the Fiscal Year, as reported in its Qualified CbC Report in relation to the jurisdiction for the Fiscal Year.

8-30(2)    
Subsection (3) applies if an intragroup payment that is made between Group Entities of the MNE Group:

(a)    is treated as income in the Qualified Financial Statements of the recipient Group Entity; and

(b)    is treated as expense in the Qualified Financial Statements of the paying Group Entity.

8-30(3)    
For the purposes of subsection (1) , include the amount of the intragroup payment in the MNE Group ' s profit or loss before income tax mentioned in that subsection.

8-30(4)    
For the purposes of subsection (1) , if:

(a)    a Constituent Entity of the MNE Group is a Permanent Establishment; and

(b)    a loss arising in respect of the Permanent Establishment is allocated to the Permanent Establishment (and not to the Main Entity in respect of the Permanent Establishment);

increase the MNE Group ' s profit or loss before income tax for the jurisdiction in which the Main Entity is located by the amount of the loss.