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 2-85   EMPLOYEES AND THE NET BOOK VALUE OF TANGIBLE ASSETS OF INVESTMENT ENTITIES AND SECURITISATION ENTITIES TO BE DISREGARDED  

2-85(1)    
For the purposes of section 2-65 , disregard the employees and the Net Book Value of Tangible Assets for a Fiscal Year of any of the following:

(a)    an Investment Entity;

(b)    an Insurance Investment Entity.

2-85(2)    
For the purposes of section 2-70 , disregard the employees and the Net Book Value of Tangible Assets for a Fiscal Year of any of the following:

(a)    an Investment Entity;

(b)    an Insurance Investment Entity;

(c)    a Securitisation Entity for the Fiscal Year.

2-85(3)    
Paragraph (2)(c) does not apply if:

(a)    

no other Constituent Entities of the MNE Group (other than the Securitisation Entity) are located in Australia; or

(b)    

each Constituent Entity of the MNE Group that is located in Australia is one of the following:

(i) a Securitisation Entity;

(ii) an Investment Entity;

(iii) an Insurance Investment Entity.

2-85(4)    

Subsections (5) and (6) apply in relation to a Constituent Entity of an MNE Group (other than a Securitisation Entity, Investment Entity or Insurance Investment Entity) located in Australia if:

(a)    paragraph (2)(c) applies in relation to the MNE Group for a Fiscal Year; and

(b)    the Constituent Entity does not have a UTPR Top-up Tax Amount for the Fiscal Year; and

(c)    no other Constituent Entity of the MNE Group located in Australia has a UTPR Top-up Tax Amount for the Fiscal Year.

2-85(5)    

Treat the Constituent Entity as having one employee, for the Fiscal Year, for the purposes of the following definitions in subsection 2-70(3) :

(a)    the definition of Number of employees of all CEs in Australia ;

(b)    the definition of Number of employees of CE in Australia .

2-85(6)    

Treat the sum of the Net Book Value of tangible assets of the Constituent Entity as being one Euro, for the Fiscal Year, for the purposes of the following definitions in subsection 2-70(3) :

(a)    the definition of Total value of tangible assets of all CEs in Australia ;

(b)    the definition of Total value of tangible assets of CE in Australia .