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

CHAPTER 8 - ADMINISTRATION  

PART 8-2 - SAFE HARBOURS  

Division 2 - Transitional CbCR Safe Harbour  

Subdivision G - Treatment of Hybrid Arbitrage Arrangements  

SECTION 8-110   TRANSITIONAL CbCR SAFE HARBOUR - HYBRID ARBITRAGE ARRANGEMENTS  

8-110(1)    
For the purposes of applying subsection 8-10(1) in relation to an MNE Group and a jurisdiction:

(a)    exclude from the MNE Group ' s profit or loss before income tax for the jurisdiction any expense or loss arising as a result of a deduction/non-inclusion arrangement, or duplicate loss arrangement, entered into after 15 December 2022; and

(b)    exclude from the MNE Group ' s income tax expense for the jurisdiction any income tax expense arising as a result of a duplicate tax recognition arrangement entered into after 15 December 2022.

8-110(2)    
Subsections (3) and (4) apply if:

(a)    the expense or loss mentioned in paragraph (1)(a) arises as a result of an arrangement that is a duplicate loss arrangement; and

(b)    the arrangement is a duplicate loss arrangement because of paragraph 8-125(1)(a) ; and

(c)    all Constituent Entities of the MNE Group including the expense or loss in their financial statements are located in the same jurisdiction.

8-110(3)    
A Filing Constituent Entity for the MNE Group must choose one of the Constituent Entities for the purposes of subsection (4) .

8-110(4)    
Treat subsection (1) as not applying with respect to the expense or loss in the financial statements of that Constituent Entity.