Taxation (Multinational - Global and Domestic Minimum Tax) Rules 2024
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Hide history noteThis section applies if: (a) an election under subsection 3-31(1) for an MNE Group applies to a jurisdiction and a Fiscal Year; and (b) a Constituent Entity of the MNE Group located in the jurisdiction has a qualified flow-through ownership interest for the Fiscal Year; and (c) the Constituent Entity is not mentioned in subsection 4-39(1) .
4-37(2)
If the Constituent Entity ' s adjusted investment amount in respect of the qualified flow-through ownership interest exceeds zero for the Fiscal Year, add to the Constituent Entity ' s Adjusted Covered Taxes for the Fiscal Year the lesser of the following: (a) that excess; (b) the sum of the amounts covered by subsection (3) for the Fiscal Year.
4-37(3)
This subsection covers each of the following: (a) the amount of any tax credit, other than a Qualified Refundable Tax Credit, with respect to the qualified flow-through ownership interest; (b) the amount of any tax-deductible loss with respect to the qualified flow-through ownership interest, multiplied by the applicable domestic tax rate;
to the extent that the amount is treated, for financial accounting purposes, as reducing the Constituent Entity ' s tax expense for the Fiscal Year.
4-37(4)
If the Constituent Entity ' s adjusted investment amount in respect of the qualified flow-through ownership interest for the Fiscal Year is exceeded by the sum of the amounts covered by subsection (5) for the Fiscal Year, subtract the excess from the Constituent Entity ' s Adjusted Covered Taxes for the Fiscal Year, subject to subsection (6) .
4-37(5)
This subsection covers each of the following: (a) the amount of any tax credit in respect of the qualified flow-through ownership interest; (b) the amount of any tax-deductible loss in respect of the qualified flow-through ownership interest, multiplied by the applicable domestic tax rate; (c) the amount of any distribution (including a return of capital) in respect of the qualified flow-through ownership interest; (d) the amount of the proceeds of sale of all or a part of the qualified flow-through ownership interest.
4-37(6)
A subtraction may only be made under subsection (4) in respect of the following amounts for the Fiscal Year to the extent of any addition to the Constituent Entity ' s Adjusted Covered Taxes under subsection (2) : (a) an amount mentioned in paragraph (5)(a) that is a Qualified Refundable Tax Credit; (b) an amount mentioned in paragraph (5)(c) or (d) .
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