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

CHAPTER 6 - CORPORATE RESTRUCTURINGS AND HOLDING STRUCTURES  

PART 6-1 - APPLICATION OF CONSOLIDATED REVENUE THRESHOLD TO GROUP MERGERS AND DEMERGERS  

SECTION 6-10   APPLICABLE MNE GROUPS - DEMERGERS  

6-10(1)    
This section specifies conditions for the purposes of paragraph 12(1)(b) of the Act.

6-10(2)    
An MNE Group (the demerged Group ) meets the conditions specified in this section for a Fiscal Year (the test year ) if:

(a)    an Applicable MNE Group demerges (see subsection (3) ) into 2 or more Groups; and

(b)    the demerged Group is one of those Groups; and

(c)    the demerged Group is an MNE Group throughout the test year; and

(d)    if the test year is the first Fiscal Year ending after the demerger - the demerged Group ' s annual revenue for the test year equals or exceeds its GloBE Threshold for the test year; and

(e)    if the test year is the second, third or fourth Fiscal Year ending after the demerger - in at least:

(i) the test year and a previous Fiscal Year ending after the demerger; or

(ii) two of the Fiscal Years ending after the demerger and before the test year;

the demerged Group has annual revenues equalling or exceeding its GloBE Threshold for the relevant year.

6-10(3)    
For the purposes of this section, a demerger means any arrangement under which the Group Entities of a Group are separated into 2 or more Groups that are no longer consolidated with the same Ultimate Parent Entity.