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

CHAPTER 4 - COMPUTATION OF ADJUSTED COVERED TAXES  

PART 4-1 - ADJUSTED COVERED TAXES  

Division 2 - Qualified flow-through ownership interests  

SECTION 4-39   EXCLUDED EQUITY GAIN OR LOSS - QUALIFIED FLOW-THROUGH OWNERSHIP INTERESTS - PROPORTIONAL AMORTISATION  

4-39(1)    
This section applies if:

(a)    an election under subsection 3-31(1) for an MNE Group applies to a jurisdiction and a Fiscal Year; and

(b)    a Constituent Entity of the MNE Group located in the jurisdiction has a qualified flow-through ownership interest for the Fiscal Year; and

(c)    either:

(i) the Constituent Entity uses the proportional amortisation method of accounting in relation to the qualified flow-through ownership interest for the Fiscal Year; or

(ii) the Constituent Entity does not use that method in relation to the qualified flow-through ownership interest for the Fiscal Year, but an election under subsection (4) applies to the Constituent Entity for the Fiscal Year.

4-39(2)    
If the final result of the following method statement is exceeded by the sum of all amounts covered by subsection (3) for the Fiscal Year, subtract the excess from the Constituent Entity ' s Adjusted Covered Taxes for the Fiscal Year. Method statement

4-39(3)    
This subsection covers each of the following:

(a)    the amount of any tax credit in respect of the qualified flow-through ownership interest;

(b)    the amount of any tax-deductible loss in respect of the qualified flowthrough ownership interest, multiplied by the applicable domestic tax rate;

(c)    the amount of any distribution (including a return of capital) in respect of the qualified flow-through ownership interest;

(d)    the amount of the proceeds of sale of all or a part of the qualified flowthrough ownership interest.

Election

4-39(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 Constituent Entity of the MNE Group.

4-39(5)    
The election begins to apply at the later of the following:

(a)    the start of the Fiscal Year in which the Constituent Entity acquires the qualified flow-through ownership interest;

(b)    the start of the Fiscal Year in which the Constituent Entity becomes subject to this instrument in relation to the qualified flow-through ownership interest.

4-39(6)    
The election may not be revoked.