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 3-160   ADJUSTMENT - AGGREGATE ASSET GAIN - EFFECT  

3-160(1)    
This section applies if an election for an MNE Group under subsection 3-155(2) applies to a jurisdiction and to a Fiscal Year (the application year ).

Adjustments to Adjusted Covered Taxes

3-160(2)    
In computing the Adjusted Covered Taxes for the application year of a Constituent Entity of the MNE Group located in the jurisdiction, exclude Covered Taxes in respect of any Net Asset Gain or Net Asset Loss of the Constituent Entity for the application year.

Adjustments to GloBE Income or Loss - application year

3-160(3)    
In computing the GloBE Income or Loss for the application year of a Constituent Entity of the MNE Group located in the jurisdiction, adjust the Constituent Entity ' s Financial Accounting Net Income or Loss for the Fiscal Year so as to:

(a)    include any amounts allocated under section 3-165 to the Constituent Entity for the application year; and

(b)    exclude any Net Asset Gain or Net Asset Loss of the Constituent Entity for the application year.

Adjustments to GloBE Income or Loss and recalculation of ETR and Top-up Tax - prior years

3-160(4)    
If an amount is allocated under section 3-165 to a Constituent Entity of an MNE Group located in a jurisdiction for a Fiscal Year in the election ' s Look-back Period (a Look-back Year ) that is not the application year:

(a)    recalculate in accordance with section 5-95 the Effective Tax Rate and Jurisdictional Top-up Tax of the MNE Group for the jurisdiction for the Look-back Year; and

(b)    for the purposes of that recalculation, make the adjustments to the GloBE Income or Loss of Constituent Entities of the MNE Group for the Look-back Year set out in subsection (5) .

3-160(5)    
For the purposes of paragraph (4)(b) , in computing the GloBE Income or Loss of a Constituent Entity of the MNE Group located in the jurisdiction for the Look-back Year, adjust the Constituent Entity ' s Financial Accounting Net Income or Loss for the Fiscal Year so as to include any amounts allocated under section 3-165 to the Constituent Entity for the Look-back Year.