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

CHAPTER 2 - LIABILITY AMOUNTS  

PART 2-4 - DOMESTIC TOP-UP TAX AMOUNT  

SECTION 2-40   DOMESTIC TOP-UP TAX AMOUNT - SPECIAL RULE FOR CONSOLIDATED GROUPS  

2-40(1)    

Subsection (2) applies if:

(a)    either of the following is a subsidiary member of a consolidated group:

(i) a Constituent Entity of an MNE Group;

(ii) a JV Subsidiary of a Joint Venture of an MNE Group; and

(b)    the head company of the consolidated group is not an Excluded Entity or a Securitisation Entity for the Fiscal Year.

2-40(2)    

Despite section 2-30 , the Constituent Entity ' s or the JV Subsidiary ' s (as the case requires) Domestic Top-up Tax Amount for the Fiscal Year is taken to be reduced to zero.

2-40(3)    

Subsection (4) applies if:

(a)    any of the following is the head company of a consolidated group:

(i) a Constituent Entity of an MNE Group;

(ii) a Joint Venture of an MNE Group;

(iii) a JV Subsidiary of a Joint Venture of an MNE Group; and

(b)    the head company of the consolidated group is not an Excluded Entity or a Securitisation Entity for the Fiscal Year.

2-40(4)    

The amount of the head company ' s Domestic Top-up Tax Amount for the Fiscal Year is taken to be increased by the amount of each reduction under subsection (2) of this section (if any) in respect of a subsidiary member of the consolidated group.

2-40(5)    
This section applies in relation to a MEC group in the same way in which it applies in relation to a consolidated group.

2-40(6)    
The following terms have the same meaning in this section as they do in the Income Tax Assessment Act 1997 :

(a)    consolidated group;

(b)    head company;

(c)    MEC group;

(d)    subsidiary member.