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

CHAPTER 5 - COMPUTATION OF EFFECTIVE TAX RATE  

PART 5-6 - MINORITY-OWNED CONSTITUENT ENTITIES  

SECTION 5-125   MINORITY-OWNED CONSTITUENT ENTITIES THAT ARE NOT PART OF A MINORITY-OWNED SUBGROUP  

5-125(1)    
This section applies if a Constituent Entity of an MNE Group is a Minority-Owned Constituent Entity (the MOCE ) that:

(a)    is not a part of a Minority-Owned Subgroup; and

(b)    is not an Investment Entity.

5-125(2)    
For the purposes mentioned in subsection (3) , treat the MOCE as the only Constituent Entity of the MNE Group located in the jurisdiction in which it is located.

5-125(3)    
The purposes are as follows:

(a)    computing the Top-up Tax of the MOCE;

(b)    determining whether the MOCE is a Low-Taxed Constituent Entity.

Note 1:

5-125(4)    
For the purposes mentioned in subsection (5) , treat the MOCE as not being a Constituent Entity of the MNE Group.

5-125(5)    
The purposes are as follows:

(a)    computing the Top-up Tax of each Constituent Entity of the MNE Group (other than the MOCE);

(b)    determining whether each Constituent Entity of the MNE Group (other than the MOCE) is a Low-Taxed Constituent Entity.

5-125(6)    
Subsections (2) and (4) do not apply for the purposes of Part 5-5 (De minimis exclusion).