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 3-210   ADJUSTMENT - DISTRIBUTIONS PAID OR PAYABLE IN RESPECT OF ADDITIONAL TIER ONE CAPITAL OR RESTRICTED TIER ONE CAPITAL  

3-210(1)    
In computing a Constituent Entity ' s GloBE Income or Loss for a Fiscal Year, adjust the Constituent Entity ' s Financial Accounting Net Income or Loss for the Fiscal Year so as to:

(a)    treat an amount recognised as a decrease to the equity of the Constituent Entity attributable to a distribution paid or payable in respect of Additional Tier One Capital or Restricted Tier One Capital issued by the Constituent Entity as an expense; and

(b)    treat an amount recognised as an increase to the equity of the Constituent Entity attributable to a distribution received or receivable in respect of Additional Tier One Capital or Restricted Tier One Capital held by the Constituent Entity as income.

3-210(2)    
An instrument issued by a Constituent Entity, pursuant to prudential regulatory requirements, that is convertible to equity or written down if a pre-specified trigger event occurs, and that has other features which are designed to aid loss absorbency in the event of a financial crisis, is:

(a)    if the requirements are applicable to the banking sector - Additional Tier One Capital ; or

(b)    if the requirements are applicable to the insurance sector - Restricted Tier One Capital .