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

CHAPTER 8 - ADMINISTRATION AND SAFE HARBOURS  

PART 8-2 - SAFE HARBOURS  

Division 2 - Transitional CbCR Safe Harbour  

Subdivision C - Simplified ETR test  

SECTION 8-50   MEANING OF SIMPLIFIED COVERED TAXES  

8-50(1)    

An MNE Group ' s Simplified Covered Taxes for a jurisdiction for a Fiscal Year is its income tax expense for the jurisdiction for the Fiscal Year that would be reported in its Qualified Financial Statements for the Fiscal Year, if the assumptions in subsections (2) and (3) were made.

8-50(2)    
For the purposes of subsection (1) , assume that the following were disregarded:

(a)    

if the income or loss of a Constituent Entity of the MNE Group (other than a Permanent Establishment) is not included in the MNE Group ' s Qualified CbC Report in relation to the jurisdiction for the Fiscal Year - income tax expense for that Constituent Entity;

(ab)    

income tax expense that relates to income tax imposed in respect of a Permanent Establishment located in another jurisdiction, by that other jurisdiction;

(b)    taxes that are not Covered Taxes;

(c)    uncertain tax positions.

8-50(3)    

For the purposes of subsection (1) , if:

(a)    the MNE Group has a Permanent Establishment in the jurisdiction for the Fiscal Year; and

(b)    the income tax expense recorded in the Qualified Financial Statements of the Main Entity includes an amount for the Permanent Establishment;

assume that so much of the income tax expense as relates to income tax imposed in respect of the Permanent Establishment by the jurisdiction in which the Permanent Establishment is located were included.