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

CHAPTER 8 - ADMINISTRATION AND SAFE HARBOURS  

PART 8-2 - SAFE HARBOURS  

Division 4 - Qualified Domestic Minimum Top-up Tax (QDMTT) Safe Harbour  

SECTION 8-201   QDMTT SAFE HARBOUR - STATELESS CONSTITUENT ENTITIES  

8-201(1)    
An MNE Group ' s Jurisdictional Top-up Tax for a jurisdiction in which a Stateless Constituent Entity is taken to be located under section 5-45 (the Stateless Jurisdiction ) for a Fiscal Year is taken to be zero if:

(a)    either:

(i) for a Stateless Constituent Entity that is a Flow-through Entity - the jurisdiction (the Actual Jurisdiction ) in which the Stateless Constituent Entity was created applies a Qualified Domestic Minimum Top-up Tax for the Fiscal Year; or

(ii) for a Stateless Constituent Entity that is a Permanent Establishment in relation to which paragraph 19(1)(d) of the Act applies - the jurisdiction (also the Actual Jurisdiction ) in which the Permanent Establishment ' s place of business (including a deemed place of business) is located applies a Qualified Domestic Minimum Top-up Tax for the Fiscal Year; and

(b)    the Actual Jurisdiction is specified in a determination under subsection 8-200(2) ; and

(c)    an election for the MNE Group under subsection (2) applies to the Stateless Jurisdiction and the Fiscal Year.

Note:

Under section 5-45 each Stateless Constituent Entity is treated as a single Constituent Entity located in a separate jurisdiction.

Election

8-201(2)    
Subject to subsection (4) , 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.

Note:

A Filing Constituent Entity for an MNE Group may not make an election under this subsection in certain circumstances: see section 8-205 .

8-201(3)    
An election under subsection (2) is an Annual Election.

8-201(4)    
A Filing Constituent Entity for the MNE Group may not make an election under subsection (2) for the MNE Group that applies to a Fiscal Year and a Stateless Jurisdiction if the Stateless Constituent Entity is not required to apply the Qualified Domestic Minimum Top-up Tax of the Actual Jurisdiction for the Fiscal Year in any circumstance.