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

CHAPTER 8 - ADMINISTRATION  

PART 8-2 - SAFE HARBOURS  

Division 3 - Simplified Calculations Safe Harbour  

Subdivision A - Simplified Calculations Safe Harbour  

SECTION 8-155   SIMPLIFIED CALCULATIONS SAFE HARBOUR - GENERAL RULE  

8-155(1)    
Subsection (2) applies if an election for an MNE Group under subsection (3) applies to a Fiscal Year and a jurisdiction.

8-155(2)    
The MNE Group ' s Top-up Tax Percentage for the jurisdiction for the Fiscal Year is taken to be zero if the MNE Group meets any of the following tests for the jurisdiction for the Fiscal Year:

(a)    the SC De minimis test;

(b)    the SC ETR test;

(c)    the SC Routine profits test.

Note:

If the Top-up Tax Percentage is taken to be zero under this subsection, the MNE Group ' s Jurisdictional Top-up Tax for the jurisdiction for the Fiscal Year may still be above zero due to any relevant Additional Current Top-up Tax under Part 5-4 .

Election

8-155(3)    
A Filing Constituent Entity for an MNE Group may make an election for the MNE Group under this subsection that applies to a specified jurisdiction.

8-155(4)    
An election under subsection (3) is an Annual Election.

Stateless Constituent Entity

8-155(5)    
However, subsection (2) does not apply in relation to a jurisdiction if the jurisdiction is a jurisdiction in which a Stateless Constituent Entity is taken to be located under section 5-45 .