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

CHAPTER 5 - COMPUTATION OF EFFECTIVE TAX RATE  

PART 5-3 - SUBSTANCE-BASED INCOME EXCLUSION  

SECTION 5-75   MEANING OF ELIGIBLE TANGIBLE ASSET  

5-75(1)    
Eligible Tangible Asset , of a Constituent Entity located in a jurisdiction, means any of the following:

(a)    property (including plant and equipment) located in the jurisdiction that are owned by the Constituent Entity;

(b)    natural resources located in the jurisdiction that are owned by the Constituent Entity;

(c)    the Constituent Entity ' s right of use, as a lessee, of tangible assets located in the jurisdiction;

(d)    a licence or similar arrangement from a government for the use by the Constituent Entity of immovable property in the jurisdiction, or exploitation of natural resources in the jurisdiction, that entails significant investment in tangible assets.

5-75(2)    
If the Constituent Entity holds part of a property mentioned in paragraph (1)(a) for lease and retains the other part of the property for its own use:

(a)    for the purposes of this Part, treat the parts of the property as separate Eligible Tangible Assets ; and

(b)    allocate the carrying value of the property between those parts on a just and reasonable basis.

5-75(3)    
However, an asset is not an Eligible Tangible Asset at any time during a Fiscal Year if it is used in the generation of a Constituent Entity ' s International Shipping Income for the Fiscal Year.