Taxation (Multinational - Global and Domestic Minimum Tax) Rules 2024
CHAPTER 7
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TAX NEUTRALITY AND DISTRIBUTION REGIMES
PART 7-4
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EFFECTIVE TAX RATE COMPUTATION FOR INVESTMENT ENTITIES
Division 4
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Top-up Tax of non-Investment Entity
SECTION 7-115
TOP-UP TAX OF CONSTITUENT ENTITY THAT IS NOT INVESTMENT ENTITY
7-115(1)
Treat the Investment Entities mentioned in subsection 7-80(1) as not being Constituent Entities of the MNE Group, for the purposes of: (a) computing the Top-up Tax of each Constituent Entity (other than an Investment Entity) of the MNE Group; and (b) determining whether each Constituent Entity (other than an Investment Entity) of the MNE Group is a Low-Taxed Constituent Entity.
7-115(2)
Paragraph (1)(a) does not affect the operation of Chapters 2 , 3 , 4 (other than sections 4-30 and 4-35 , and Parts 4-5 and 4-6 ), 6 , 8 and 9 to the extent that they affect the application of Chapter 5 for the purposes of computing the Top-up Tax of each Constituent Entity (other than an Investment Entity) of the MNE Group.
7-115(3)
Subsection (4) applies if a Constituent Entity of the MNE Group that is not an Investment Entity has an amount payable for a Fiscal Year in respect of an Investment Entity under a Qualified Domestic Minimum Top-up Tax of a jurisdiction.
7-115(4)
In computing the Jurisdictional Top-up Tax of the MNE Group for the jurisdiction under section 5-30 , treat the amount as not being an amount payable by the Constituent Entity under a Qualified Domestic Minimum Top-up Tax of the jurisdiction (see definition of Domestic Top-up Tax in that section).
Treat the Investment Entities mentioned in subsection 7-80(1) as not being Constituent Entities of the MNE Group, for the purposes of: (a) computing the Top-up Tax of each Constituent Entity (other than an Investment Entity) of the MNE Group; and (b) determining whether each Constituent Entity (other than an Investment Entity) of the MNE Group is a Low-Taxed Constituent Entity.
7-115(2)
Paragraph (1)(a) does not affect the operation of Chapters 2 , 3 , 4 (other than sections 4-30 and 4-35 , and Parts 4-5 and 4-6 ), 6 , 8 and 9 to the extent that they affect the application of Chapter 5 for the purposes of computing the Top-up Tax of each Constituent Entity (other than an Investment Entity) of the MNE Group.
7-115(3)
Subsection (4) applies if a Constituent Entity of the MNE Group that is not an Investment Entity has an amount payable for a Fiscal Year in respect of an Investment Entity under a Qualified Domestic Minimum Top-up Tax of a jurisdiction.
7-115(4)
In computing the Jurisdictional Top-up Tax of the MNE Group for the jurisdiction under section 5-30 , treat the amount as not being an amount payable by the Constituent Entity under a Qualified Domestic Minimum Top-up Tax of the jurisdiction (see definition of Domestic Top-up Tax in that section).
Note:
The amount is treated as an amount payable by the Investment Entity: see subsection 7-105(4) .
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