Taxation (Multinational - Global and Domestic Minimum Tax) Rules 2024
Subsection (2) applies if an election under subsection 3- 31(1) for an MNE Group applies to a jurisdiction and a Fiscal Year.
3-32(2)
Despite section 3-30 , in computing the GloBE Income or Loss of a Constituent Entity of the MNE Group located in the jurisdiction, adjust the Constituent Entity ' s Financial Accounting Net Income or Loss for the Fiscal Year so as to include any Excluded Equity Gain or Loss of the Constituent Entity for the Fiscal Year, to the extent that: (a) for a gain or loss in respect of an Ownership Interest mentioned in paragraph 3-35(1)(a) :
(i) the Constituent Entity is subject to tax on the basis of mark-to-market movements, or the impairment, of the Ownership Interest, if the tax consequences of those movements or that impairment are reflected in the Constituent Entity ' s income tax expense; or
(b) for a profit or loss in respect of an Ownership Interest mentioned in paragraph 3-35(1)(b) - the profit or loss is attributable to an Ownership Interest (other than a Portfolio Shareholding) that is in a Tax Transparent Entity; or (c) for a gain or loss in respect of an Ownership Interest mentioned in paragraph 3-35(1)(c) - the gain or loss is included in the Constituent Entity ' s taxable income (excluding any gain that is fully offset, or the proportionate share of any gain that is partially offset, by any deduction or other similar relief particular to the type of gain).
(ii) the Constituent Entity is subject to tax on a realisation basis, if the Constituent Entity ' s income tax expense includes a deferred tax expense on the mark-to-market movements, or the impairment, of the Ownership Interest; or
3-32(3)
However, subsection (2) does not apply in relation to a profit or loss, or a gain or loss, in respect of an Ownership Interest that is a qualified flow-through ownership interest in relation to which section 4-37 or 4-39 applies.
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