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

PART 3 - CORE GROUP AND ENTITY CONCEPTS  

Division 3 - Joint Ventures and Multi-Parented MNE Groups  

SECTION 26   JOINT VENTURES  

26(1)    
An Entity is a Joint Venture of an MNE Group if:

(a)    the Entity ' s financial results are reported under the equity method in the Consolidated Financial Statements of the Ultimate Parent Entity of the MNE Group for the Fiscal Year; and

(b)    the Ultimate Parent Entity ' s Ownership Interest Percentage in the Entity is at least 50%.

26(2)    
However, the Entity is not a Joint Venture of an MNE Group if any of the following applies:

(a)    the Entity is the Ultimate Parent Entity of an Applicable MNE Group;

(b)    the Entity is an Excluded Entity under paragraph 20(1)(a) , (b) , (c) , (d) , (e) or (f) ;

(c)    in a case where the Group Entities of the MNE Group that hold Direct Ownership Interests in the Entity (the Excluded Entity owners ) are Excluded Entities mentioned in paragraph (b) of this subsection - any of the following applies:

(i) the Entity operates exclusively or almost exclusively to hold assets or invest funds for the benefit of the holders of Direct Ownership Interests in the Entity;

(ii) the Entity only carries out activities that are ancillary to those carried out by the Excluded Entity owners;

(iii) the Entity is of a kind prescribed by the Rules for the purposes of this subparagraph;

(d)    the MNE Group is comprised exclusively of Excluded Entities;

(e)    the Entity is a JV Subsidiary of a Joint Venture.