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

CHAPTER 4 - COMPUTATION OF ADJUSTED COVERED TAXES  

PART 4-1 - ADJUSTED COVERED TAXES  

Division 1 - General  

SECTION 4-35   ADDITIONAL CURRENT TOP-UP TAX UNDER SECTION 4-30 - EXCESS NEGATIVE TAX EXPENSE CARRY-FORWARD  

4-35(1)    
Subsection (2) applies if:

(a)    disregarding subsection (2) , there is an amount of Additional Current Top-up Tax of the MNE Group for the Fiscal Year for the jurisdiction, in respect of that Fiscal Year, under subsection 4-30(3) ; and

(b)    an election for the MNE Group under subsection (4) of this section applies to the jurisdiction for the Fiscal Year.

4-35(2)    
Despite subsection 4-30(3) , the amount of Additional Current Top-up Tax of the MNE Group for the Fiscal Year for the jurisdiction, in respect of that Fiscal Year, under that subsection is taken to be reduced to:

(a)    unless paragraph (b) of this subsection applies - nil; or

(b)    if some or all of that amount of Additional Current Top-up Tax (computed disregarding this paragraph) is attributable to a tax loss that:

(i) was carried back from that Fiscal Year to a prior Fiscal Year; and

(ii) was deducted for the prior Fiscal Year under the tax law of the jurisdiction;

that amount of Additional Current Top-up Tax, to the extent that is attributable to the tax loss.

4-35(3)    
If subsection (2) applies:

(a)    where an Excess Negative Tax Expense Carry-forward has not been established for the MNE Group for the jurisdiction:

(i) an Excess Negative Tax Expense Carry-forward is established for the MNE Group for the jurisdiction; and

(ii) the balance of the Excess Negative Tax Expense Carry-forward is increased by the amount of the reduction under subsection (2) ; or

(b)    otherwise - the balance of Excess Negative Tax Expense Carry-forward for the MNE Group for the jurisdiction is increased by the amount of the reduction under subsection (2) .

Note 1:

In some circumstances, the balance of the Excess Negative Tax Expense Carry-forward is applied to reduce the sum of Adjusted Covered Taxes in relation to the jurisdiction mentioned in paragraph 5-5(2)(a) : see subsection 5-5(4) .

Note 2:

The balance of the Excess Negative Tax Expense Carry-forward may also be increased under section 5-10 .

Election

4-35(4)    
A Filing Constituent Entity for an MNE Group may make an election for the MNE Group under this subsection that applies to a specified jurisdiction.

4-35(5)    
An election under subsection (4) is an Annual Election.