Taxation (Multinational - Global and Domestic Minimum Tax) Rules 2024
Subsections (2) and (3) specify, for the purposes of section 43 of the Act, the jurisdiction a Constituent Entity of an MNE Group is located in for a Fiscal Year if, disregarding that section, it would be located in more than one jurisdiction under section 40 of the Act.
10-60(2)
If: (a) the jurisdictions are party to a Tax Treaty; and (b) the Constituent Entity is deemed to be resident in only one of the jurisdictions for purposes of the Tax Treaty;
the Constituent Entity is taken to be located in that jurisdiction for the Fiscal Year.
10-60(3)
If subsection (2) does not apply to the Constituent Entity, the Entity is taken to be located in the following jurisdiction for the Fiscal Year: (a) if the Constituent Entity has, for the Fiscal Year, a greater amount of Covered Taxes (determined without reference to any taxes paid under a Controlled Foreign Company Tax Regime) paid or due to be paid in one of the jurisdictions than in the other jurisdictions - that jurisdiction; (b) if paragraph (a) does not apply, and the MNE Group has a greater Substance-based Income Exclusion Amount for the Fiscal Year (computed under Part 5-3 on the assumption that the Constituent Entity were the only Constituent Entity of the MNE Group located in the jurisdiction) in one of the jurisdictions than in the other jurisdictions - that jurisdiction; (c) if neither paragraph (a) nor (b) applies, and the Constituent Entity is the Ultimate Parent Entity of the MNE Group - the jurisdiction in which it was created.
Note:
Under paragraph 43(2)(b) of the Act, a Constituent Entity of an MNE Group mentioned in subsection (1) of this section is a Stateless Constituent Entity of the MNE Group for a Fiscal Year if the Constituent Entity is not taken to be located in a jurisdiction for the Fiscal Year under subsections (2) and (3) of this section.
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