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

CHAPTER 3 - COMPUTATION OF GloBE INCOME OR LOSS  

PART 3-2 - ADJUSTMENTS TO DETERMINE GloBE INCOME OR LOSS  

Division 2 - Other Article 3.2 adjustments  

SECTION 3-125   MEANING OF QUALIFIED REFUNDABLE TAX CREDIT, NON-QUALIFIED REFUNDABLE TAX CREDIT AND REFUNDABLE TAX CREDIT  

3-125(1)    
A Refundable Tax Credit is a Qualified Refundable Tax Credit to the extent that it must be paid as cash or available as cash equivalents within 4 years from when a Constituent Entity first satisfies the conditions for receiving the credit under the laws of the jurisdiction granting the credit.

3-125(2)    
However, the Refundable Tax Credit is not a Qualified Refundable Tax Credit :

(a)    if it is issued under a tax credit regime with a refund mechanism that has no practical significance for those taxpayers that will be entitled to the tax credit; or

(b)    to the extent that it includes an amount of Tax creditable or refundable under a Qualified Imputation Tax or a Disqualified Refundable Imputation Tax.

3-125(3)    
A Non-Qualified Refundable Tax Credit is a Refundable Tax Credit that is not a Qualified Refundable Tax Credit or a Marketable Transferable Tax Credit.

3-125(4)    
A tax credit is a Refundable Tax Credit if it is payable in cash or cash equivalents (including by way of discharge against a liability to a Tax which is not a Covered Tax):

(a)    after it has been used to reduce or discharge any liability to Covered Taxes; or

(b)    in the absence of any liability for Covered Taxes.