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

PART 3 - CORE GROUP AND ENTITY CONCEPTS  

Division 2 - Excluded Entities  

SECTION 22   MEANINGS OF INTERNATIONAL ORGANISATION AND NON-PROFIT ORGANISATION  

22(1)    
An International Organisation is any of the following:

(a)    an intergovernmental or supranational organisation that meets all of the following criteria:

(i) it is comprised primarily of governments;

(ii) it has in effect a headquarters agreement (or substantially similar agreement) with the jurisdiction in which the organisation is established (for example, an arrangement that entitles the organisation ' s offices or establishments in the jurisdiction to privileges and immunities);

(iii) law or its governing documents prevent its income inuring to the benefit of private persons;

(b)    an Entity that meets both of the following criteria:

(i) it acts for, is part of, or is wholly-owned by an organisation described in paragraph (a) ;

(ii) law or its governing documents prevent its income inuring to the benefit of private persons.

22(2)    
A Non-profit Organisation is an Entity that meets all of the following criteria:

(a)    it is established and operated in the jurisdiction where it is created and managed:

(i) exclusively for religious, charitable, scientific, artistic, cultural, athletic, educational or other similar purposes; or

(ii) as a professional organisation, business league, chamber of commerce, labour organisation, agricultural or horticultural organisation, civic league or an organisation operated exclusively for the promotion of social welfare;

(b)    substantially all of its income from its operations as mentioned in paragraph (a) is exempt from income tax in the jurisdiction where it is created and managed;

(c)    it has no shareholders or members who have a proprietary or beneficial interest in its income or assets;

(d)    its income or assets may not be distributed to, or applied for the benefit of, a private person or non-charitable Entity other than:

(i) pursuant to the conduct of its operations as mentioned in paragraph (a) ; or

(ii) as payment of reasonable compensation for services rendered or for the use of property or capital; or

(iii) as payment representing the fair market value of property which it has purchased;

(e)    upon its termination, liquidation or dissolution, all of its assets must be distributed or revert to a Non-profit Organisation or to the government (including any Governmental Entity) of the jurisdiction where it is created and managed, or any political subdivision thereof;

(f)    it does not carry on a trade or business that is not directly related to the purposes for which it was established.