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 4-5  

4-5   MEANING OF ADJUSTED COVERED TAXES  
The Adjusted Covered Taxes for a Fiscal Year of a Constituent Entity of an MNE Group is the Constituent Entity ' s Accrued Current Covered Tax Expense for the Fiscal Year, adjusted by:

(a)    adding its Additions to Covered Taxes for the Fiscal Year (see section 4-15 ) and subtracting its Reductions to Covered Taxes for the Fiscal Year (see section 4-20 ); and

(b)    adding the Total Deferred Tax Adjustment Amount for the Constituent Entity for the Fiscal Year (see Part 4-4 ); and

(c)    adding any increase in Covered Taxes, and subtracting any decrease in Covered Taxes, that:

(i) are recorded in equity or Other Comprehensive Income of the Constituent Entity for the Fiscal Year; and

(ii) relate to amounts included in the computation of its GloBE Income or Loss for the Fiscal Year that will be subject to tax under the law of the jurisdiction in which it is located.