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

CHAPTER 2 - LIABILITY AMOUNTS  

PART 2-5 - UTPR TOP-UP TAX AMOUNT  

SECTION 2-45   MEANING OF UTPR TOP-UP TAX AMOUNT  

2-45(1)    
Subsection (2) applies if a Constituent Entity of an Applicable MNE Group for a Fiscal Year is located in Australia.

2-45(2)    
The Constituent Entity has a UTPR Top-up Tax Amount for the Fiscal Year if:

(a)    the Total UTPR Top-up Tax Amount for the Applicable MNE Group for the Fiscal Year is greater than zero; and

(b)    an amount of the Total UTPR Top-up Tax Amount is allocated to Australia under section 2-60 ; and

(c)    an amount of that allocated amount is distributed to the Constituent Entity under section 2-70 .

2-45(3)    
Subsection (4) applies if:

(a)    a Constituent Entity for a Fiscal Year of an Applicable MNE Group for the Fiscal Year is a Permanent Establishment of a Main Entity; and

(b)    the Constituent Entity is located in Australia for the Fiscal Year; and

(c)    the Main Entity is not located in Australia for the Fiscal Year.

2-45(4)    
If, disregarding this subsection, the Constituent Entity has a UTPR Top-up Tax Amount for the Fiscal Year:

(a)    despite subsection (2) , the Constituent Entity does not have a UTPR Top-up Tax Amount for the Fiscal Year; and

(b)    the Main Entity has a UTPR Top-up Tax Amount for the Fiscal Year.

2-45(5)    
For the purposes of subsections (2) and (4) , the UTPR Top-up Tax Amount is equal to the amount distributed to the Constituent Entity as mentioned in paragraph (2)(c) .

2-45(6)    
To avoid doubt, if the Constituent Entity is an Investment Entity or Insurance Investment Entity, it does not have a UTPR Top-up Tax Amount for the Fiscal Year.

Note 1:

Under the formula in subsection 2-70(3) , an amount of the Australian allocated amount will not be distributed to such a Constituent Entity (see section 2-85 ).

Note 2:

If the Constituent Entity is Securitisation Entity, it will not have a UTPR Top-up Tax Amount for the Fiscal Year unless the only Constituent Entities of the MNE Group that are located in its jurisdiction are Securitisation Entities (see paragraph 2-85(2)(c) ).

 

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