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

CHAPTER 8 - ADMINISTRATION  

PART 8-2 - SAFE HARBOURS  

Division 2 - Transitional CbCR Safe Harbour  

Subdivision A - Transitional CbCR Safe Harbour  

SECTION 8-10   TRANSITIONAL CbCR SAFE HARBOUR - GENERAL RULE  

8-10(1)    
An MNE Group ' s Jurisdictional Top-up Tax for a jurisdiction for a Fiscal Year is taken to be zero if:

(a)    an election for the MNE Group under subsection (3) applies to the jurisdiction and the Fiscal Year; and

(b)    the MNE Group meets any of the following tests for the jurisdiction for the Fiscal Year:

(i) the De minimis test;

(ii) the Simplified ETR test;

(iii) the Routine profits test.

Note:

Despite this subsection, Top-up Tax may still need to be computed for certain Investment Entities of the MNE Group: see subsection 8-95(4) .

8-10(2)    
Subsection (1) only applies in relation to the MNE Group, the jurisdiction and the Fiscal Year (the application year ) if:

(a)    the application year is the first Fiscal Year (the initial year ) to which the following apply:

(i) the Fiscal Year is covered by the Transition Period;

(ii) one or more Constituent Entities of the MNE Group are located in the jurisdiction for the Fiscal Year; or

(b)    subsection (1) has applied in relation to the MNE Group, the jurisdiction and the following Fiscal Years:

(i) the initial year;

(ii) if there are one or more Fiscal Years between the initial year and the application year - each of those Fiscal Years.

Election

8-10(3)    
A Filing Constituent Entity for an MNE Group may make an election for the MNE Group under this subsection that applies to:

(a)    a specified Fiscal Year covered by the Transition Period; and

(b)    a specified jurisdiction.

8-10(4)    
Unless the election is revoked, it applies to the specified Fiscal Year and the specified jurisdiction.