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

PART 3 - CORE GROUP AND ENTITY CONCEPTS  

Division 2 - Excluded Entities  

SECTION 20   MEANING OF EXCLUDED ENTITY  

20(1)    
An Excluded Entity is an Entity that is any of the following:

(a)    a Governmental Entity;

(b)    an International Organisation;

(c)    a Non-profit Organisation;

(d)    a Pension Fund;

(e)    an Investment Fund that is an Ultimate Parent Entity;

(f)    a Real Estate Investment Vehicle that is an Ultimate Parent Entity;

(g)    an Excluded Service Entity;

(h)    an Entity of a kind prescribed by the Rules for the purposes of this paragraph.

20(2)    
If:

(a)    an Entity is an Excluded Entity under a paragraph of subsection (1) ; and

(b)    the Entity is a Main Entity in respect of a Permanent Establishment;

for the purposes of this Act, treat the Permanent Establishment as an Excluded Entity under that paragraph.

20(3)    
To avoid doubt, subsection (2) does not result in the Permanent Establishment being treated as an Entity for the purposes of this Act.

20(4)    
However, an Entity is not an Excluded Entity throughout a Fiscal Year if an election under subsection (5) applies to the Entity and the Fiscal Year.

20(5)    
A Filing Constituent Entity for an Applicable MNE Group may make an election under this section that applies to a specified Constituent Entity of the MNE Group.

20(6)    
An election under subsection (5) is a Five-Year Election.