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

CHAPTER 3 - COMPUTATION OF GloBE INCOME OR LOSS  

PART 3-2 - ADJUSTMENTS TO DETERMINE GloBE INCOME OR LOSS  

Division 2 - Other Article 3.2 adjustments  

SECTION 3-145   ADJUSTMENT - LOSS ON TRANSFER OF PURCHASED NON-MARKETABLE TRANSFERABLE TAX CREDITS  

3-145(1)    
Subsection (2) applies if:

(a)    a Constituent Entity transferred a Non-Marketable Transferable Tax Credit during a Fiscal Year; and

(b)    the Constituent Entity is not the person to whom the tax credit was originally granted; and

(c)    the transfer amount (see subsection (3) ) is a negative number.

3-145(2)    
In computing the Constituent Entity ' s GloBE Income or Loss for the Fiscal Year, adjust the Constituent Entity ' s Financial Accounting Net Income or Loss for the Fiscal Year so as to include the transfer amount.

3-145(3)    
For the purposes of paragraph (1)(c) and subparagraph 4-20(1)(c)(ii) , the transfer amount is:

(a)    the sum of:

(i) the amount of the tax credit that has been used by the Constituent Entity; and

(ii) the amount (if any) received by the Constituent Entity in exchange for the transfer;

reduced by:

(b)    the sum of:

(i) the Constituent Entity ' s purchase price of the tax credit; and

(ii) each amount credited or refunded to the Constituent Entity mentioned in subsection 4-20(2) , as reduced by subsection 4-20(3) (whether in the Fiscal Year or a previous Fiscal Year).

Note:

If the transfer amount is a positive number, it is included in the Constituent Entity ' s Reduction to Covered Taxes: see subparagraph 4-20(1)(c)(ii) .