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

CHAPTER 10 - DEFINITIONS  

PART 10-3 - LOCATION OF DUAL-LOCATED ENTITIES  

SECTION 10-60   DUAL-LOCATED ENTITIES  

10-60(1)    
Subsections (2) and (3) specify, for the purposes of section 43 of the Act, the jurisdiction a Constituent Entity of an MNE Group is located in for a Fiscal Year if, disregarding that section, it would be located in more than one jurisdiction under section 40 of the Act.

10-60(2)    
If:

(a)    the jurisdictions are party to a Tax Treaty; and

(b)    the Constituent Entity is deemed to be resident in only one of the jurisdictions for purposes of the Tax Treaty;

the Constituent Entity is taken to be located in that jurisdiction for the Fiscal Year.

10-60(3)    
If subsection (2) does not apply to the Constituent Entity, the Entity is taken to be located in the following jurisdiction for the Fiscal Year:

(a)    if the Constituent Entity has, for the Fiscal Year, a greater amount of Covered Taxes (determined without reference to any taxes paid under a Controlled Foreign Company Tax Regime) paid or due to be paid in one of the jurisdictions than in the other jurisdictions - that jurisdiction;

(b)    if paragraph (a) does not apply, and the MNE Group has a greater Substance-based Income Exclusion Amount for the Fiscal Year (computed under Part 5-3 on the assumption that the Constituent Entity were the only Constituent Entity of the MNE Group located in the jurisdiction) in one of the jurisdictions than in the other jurisdictions - that jurisdiction;

(c)    if neither paragraph (a) nor (b) applies, and the Constituent Entity is the Ultimate Parent Entity of the MNE Group - the jurisdiction in which it was created.

Note:

Under paragraph 43(2)(b) of the Act, a Constituent Entity of an MNE Group mentioned in subsection (1) of this section is a Stateless Constituent Entity of the MNE Group for a Fiscal Year if the Constituent Entity is not taken to be located in a jurisdiction for the Fiscal Year under subsections (2) and (3) of this section.