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

CHAPTER 5 - COMPUTATION OF EFFECTIVE TAX RATE  

PART 5-4 - ADDITIONAL CURRENT TOP-UP TAX  

SECTION 5-100   ADDITIONAL CURRENT TOP-UP TAX - ADJUSTED COVERED TAXES LESS THAN EXPECTED AMOUNT  

5-100(1)    
This section applies if, in a Fiscal Year (the current Fiscal Year ), there is an amount of Additional Current Top-up Tax of an MNE Group for a jurisdiction for a Fiscal Year, in respect of the current Fiscal Year, under subsection 4-30(3) .

Note:

Section 4-35 (Excess Negative Tax Expense Carry-forward) may prevent an amount of Additional Current Top-up Tax from arising under subsection 4-30(3) .

5-100(2)    
For the purposes of section 2-15 (Inclusion Ratio), increase the GloBE Income for the current Fiscal Year of a Constituent Entity of the MNE Group located in the jurisdiction by the amount that is:

(a)    the Additional Current Top-up Tax mentioned in subsection (1) allocated to the Constituent Entity in accordance with subsection (3) ;

divided by:

(b)    the Minimum Rate.

5-100(3)    
For the purposes of paragraph (2)(a) , the Additional Current Top-up Tax is allocated as follows:

(a)    allocate such an amount only to Constituent Entities that have an amount of Adjusted Covered Taxes for the current Fiscal Year that is:

(i) less than zero; and

(ii) less than the GloBE Income or Loss of the Constituent Entity for the current Fiscal Year multiplied by the Minimum Rate;

(b)    allocate such an amount to those Constituent Entities pro-rata based upon the following amount for each of those Constituent Entities:

(GloBE Income or Loss Minimum × Rate)

−

Adjusted Covered Taxes

where:

Adjusted Covered Taxes
means the Adjusted Covered Taxes of the Constituent Entity for the current Fiscal Year.

GloBE Income or Loss
means the GloBE Income or Loss of the Constituent Entity for the current Fiscal Year.

5-100(4)    
For the purposes of Chapter 2 , if a Constituent Entity is allocated an amount of Additional Current Top-up Tax for a Fiscal Year under subsection (3) , treat the Constituent Entity as a Low-Taxed Constituent Entity for the Fiscal Year.