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

CHAPTER 9 - TRANSITION RULES  

PART 9-1 - TAX ATTRIBUTES UPON TRANSITION  

SECTION 9-10   PRE-TRANSITION YEAR DEFERRED TAX ASSETS AND LIABILITIES - AMOUNTS  

9-10(1)    
For the purposes of subsection 9-5(2) , take account of a deferred tax asset or deferred tax liability:

(a)    if it relates to a tax credit (including a tax credit carry-forward or a foreign tax credit) and is reflected or disclosed in the Constituent Entity ' s financial accounts - in the amount set out in subsection (3) ; or

(b)    otherwise - in the amount set out in subsection (4) .

9-10(2)    
For the purposes of subsection (1) , disregard the impact of any valuation adjustment or accounting recognition adjustment with respect to the amount of a deferred tax asset.

9-10(3)    
For the purposes of paragraph (1)(a) , the amount is as follows:

(a)    if the tax rate used to determine the deferred tax asset or deferred tax liability is below the Minimum Rate - the amount of the deferred tax asset or deferred tax liability reflected or disclosed in the financial accounts;

(b)    otherwise - the amount computed using the following formula:

Deferred tax asset or liability	×	Minimum Rate
Applicable domestic tax rate

where:

applicable domestic tax rate
means the tax rate in the Fiscal Year preceding the Transition Year;

deferred tax asset or liability
means the amount of the deferred tax asset or deferred tax liability reflected or disclosed in the financial accounts.

9-10(4)    
For the purposes of paragraph (1)(b) , the amount is as follows:

(a)    if paragraph (b) of this subsection does not apply - the lesser of the following:

(i) the amount of the deferred tax asset or deferred tax liability reflected or disclosed in the financial accounts;

(ii) that amount recast at the Minimum Rate;

(b)    in the case of a deferred tax asset that is attributable to a loss that, assuming the Constituent Entity computed its GloBE Income or Loss for the Fiscal Year in which the loss arose, would have been taken into account in that computation - the amount of the deferred tax asset reflected in the financial accounts recast at the Minimum Rate.