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

CHAPTER 8 - ADMINISTRATION  

PART 8-2 - SAFE HARBOURS  

Division 2 - Transitional CbCR Safe Harbour  

Subdivision D - Routine profits test  

SECTION 8-60   MEETING THE ROUTINE PROFITS TEST  

8-60(1)    
An MNE Group meets the Routine profits test for a jurisdiction for a Fiscal Year if the MNE Group ' s Profit (Loss) before Income Tax for the jurisdiction for the Fiscal Year is equal to or less than the MNE Group ' s Substance-based Income Exclusion Amount for the jurisdiction for the Fiscal Year.

8-60(2)    
For the purposes of subsection (1) , in computing the Substance-based Income Exclusion Amount mentioned in that subsection, treat a Constituent Entity of the MNE Group as being located in the jurisdiction for the Fiscal Year if, and only if:

(a)    the Constituent Entity is a CbCR Resident of the jurisdiction for the Fiscal Year; and

(b)    the Constituent Entity is located in the jurisdiction for the Fiscal Year.

8-60(3)    
To avoid doubt, for the purposes of subsection (1) , in computing the Substance-based Income Exclusion Amount mentioned in that subsection, apply the rules in Part 9-2 (Transitional relief for Substance-based Income Exclusion).