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

CHAPTER 8 - ADMINISTRATION  

PART 8-2 - SAFE HARBOURS  

Division 2 - Transitional CbCR Safe Harbour  

Subdivision B - De minimis test  

SECTION 8-20   MEETING THE DE MINIMIS TEST  

8-20(1)    
An MNE Group meets the De minimis test for a jurisdiction for a Fiscal Year if:

(a)    the MNE Group ' s Total Revenue for the jurisdiction for the Fiscal Year is less than 10 million Euros; and

(b)    the MNE Group ' s Profit (Loss) before Income Tax for the jurisdiction for the Fiscal Year is less than 1 million Euros.

8-20(2)    
However, the MNE Group does not meet the De minimis test for a jurisdiction for a Fiscal Year if the sum of the following equals or exceeds 10 million Euros:

(a)    the total revenue for the Fiscal Year of each Constituent Entity of the MNE Group that:


(i) is located in the jurisdiction; and

(ii) is covered by subsection (3) ;

(b)    the MNE Group ' s Total Revenue for the jurisdiction for the Fiscal Year.

8-20(3)    
For the purposes of subparagraph (2)(a)(ii) , this subsection covers a Constituent Entity of the MNE Group if the Constituent Entity ' s assets, liabilities, income, expenses and cash flows are excluded from the Consolidated Financial Statements of the Ultimate Parent Entity of the MNE Group solely on the grounds that the Constituent Entity is held for sale.


 

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