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

CHAPTER 2 - LIABILITY AMOUNTS  

PART 2-6 - ALLOCATION OF TOP-UP TAX FOR THE UTPR  

SECTION 2-65   MEANING OF UTPR PERCENTAGE  

2-65(1)    
An MNE Group ' s UTPR Percentage for a Fiscal Year for a jurisdiction that has a Qualified UTPR in force for the Fiscal Year is the percentage computed under the following formula:

where:

Number of employees in all UTPR jurisdictions
means the total number of employees of all Constituent Entities of the MNE Group located in each jurisdiction that has a Qualified UTPR in force for the Fiscal Year.

Number of employees in the jurisdiction
means the total number of employees of all Constituent Entities of the MNE Group located in the jurisdiction.

Total value of tangible assets in all UTPR jurisdictions
means the sum of the Net Book Value of tangible assets for the Fiscal Year of all Constituent Entities of the MNE Group located in each jurisdiction that has a Qualified UTPR in force for the Fiscal Year.

Total value of tangible assets in the jurisdiction
means the sum of the Net Book Value of tangible assets for the Fiscal Year of all Constituent Entities of the MNE Group located in the jurisdiction.

Note 1:

Australia is a jurisdiction that has a Qualified UTPR in force for the Fiscal Year.

Note 2:

For the treatment of Investment Entities, Insurance Investment Entities and Securitisation Entities, see section 2-85 .

2-65(2)    
Despite subsection (1) , the MNE Group ' s UTPR Percentage for the Fiscal Year (the current Fiscal Year ) for the jurisdiction is zero if:

(a)    an amount of the Total UTPR Top-up Tax Amount for the MNE Group for a prior Fiscal Year is allocated to the jurisdiction for the prior Fiscal Year under the provisions of a law of the jurisdiction that is equivalent to this Part; and

(b)    

that amount (the allocated amount ) has not resulted in the Constituent Entities of the MNE Group located in the jurisdiction having an additional cash tax expense equal, in total, to the allocated amount, by the end of the period of 12 months after the end of the current Fiscal Year.

2-65(3)    
If an MNE Group ' s UTPR Percentage for a Fiscal Year for a jurisdiction is zero under subsection (2) , disregard the jurisdiction in computing the MNE Group ' s UTPR Percentage for the Fiscal Year of another jurisdiction under subsection (1) .

2-65(4)    
Subsection (2) does not apply if, disregarding this subsection, the MNE Group ' s UTPR Percentage for the Fiscal Year for each jurisdiction that has a Qualified UTPR in force for the Fiscal Year is zero.