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

CHAPTER 7 - TAX NEUTRALITY AND DISTRIBUTION REGIMES  

PART 7-1 - ULTIMATE PARENT ENTITY THAT IS A FLOW-THROUGH ENTITY  

SECTION 7-15   APPLICATION OF SECTIONS 7-5 AND 7-10 TO PERMANENT ESTABLISHMENT  

7-15(1)    
This section applies if:

(a)    the Ultimate Parent Entity of an MNE Group is a Flow-through Entity; and

(b)    either:

(i) the Ultimate Parent Entity; or

(ii) if subsection (2) applies - the Tax Transparent Entity mentioned in that subsection;

wholly or partly carries out its business through a Permanent Establishment.

7-15(2)    
For the purposes of subparagraph (1)(b)(ii) , this subsection applies if the Ultimate Parent Entity holds an Ownership Interest in a Tax Transparent Entity that is:

(a)    a Direct Ownership Interest; or

(b)    an Indirect Ownership Interest held through a Tax Transparent Structure.

7-15(3)    
Subsection (4) applies if an amount (the attributable income ) of the Permanent Establishment ' s GloBE Income for a Fiscal Year is attributable to a Direct Ownership Interest held by another Entity in the Ultimate Parent Entity.

7-15(4)    
Subsections 7-5(2) , (3) and (4) apply to the Permanent Establishment in the same way that they apply to an Ultimate Parent Entity.

7-15(5)    
Subsection (6) applies if an amount (the attributable loss ) of the Permanent Establishment ' s GloBE Loss for a Fiscal Year is attributable to a Direct Ownership Interest held by another Entity in the Ultimate Parent Entity.

7-15(6)    
Subsection 7-10(2) applies to the Permanent Establishment in the same way that it applies to an Ultimate Parent Entity.