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 3-175   MEANING OF LOOK-BACK PERIOD AND LOSS YEAR  

3-175(1)    
The Look-back Period , of an election for an MNE Group under subsection 3-155(2) , means the Fiscal Year to which the election applies (the application year ) and the 4 Fiscal Years immediately preceding it.

3-175(2)    
A Loss Year , in relation to an election for an MNE Group under subsection 3-155(2) , means a Fiscal Year in the Look-back Period of the election if both of the following apply in relation to the Fiscal Year:

(a)    a Constituent Entity of the MNE Group located in the jurisdiction to which the election applies has an adjusted Net Asset Loss for the Fiscal Year greater than zero (see subsection (3) of this section);

(b)    the sum of adjusted Net Asset Losses for the Fiscal Year of all Constituent Entities of the MNE Group located in that jurisdiction exceeds the sum of the Net Asset Gains for the Fiscal Year of all those Constituent Entities.

3-175(3)    
For the purposes of subsection (2) , the adjusted Net Asset Loss for a Fiscal Year of a Constituent Entity of the MNE Group located in the jurisdiction is:

(a)    the Net Asset Loss of the Constituent Entity for the Fiscal Year;

reduced by:

(b)    so much of that Net Asset Loss as has already been applied under paragraph 3-165(3)(c) in respect of an election that applies to a Fiscal Year that is before the application year.