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

CHAPTER 5 - COMPUTATION OF EFFECTIVE TAX RATE  

PART 5-5 - DE MINIMIS EXCLUSION  

SECTION 5-105   DE MINIMIS EXCLUSION  

5-105(1)    
The Top-up Tax of a Constituent Entity of an MNE Group located in a jurisdiction is taken to be zero for a Fiscal Year if:

(a)    the Average GloBE Revenue of the MNE Group for the jurisdiction for the Fiscal Year is less than 10 million Euros; and

(b)    the Average GloBE Income or Loss of the MNE Group for the jurisdiction for the Fiscal Year is a loss or is less than 1 million Euros; and

(c)    an election for the MNE Group under subsection (2) applies to the jurisdiction and the Fiscal Year; and

(d)    the Constituent Entity is not a Stateless Constituent Entity, an Investment Entity or an Insurance Investment Entity.

Election

5-105(2)    
A Filing Constituent Entity for the MNE Group may make an election for the MNE Group under this subsection that applies to a specified jurisdiction.

5-105(3)    
An election under subsection (2) is an Annual Election.