Commonwealth Numbered Acts

TAXATION (MULTINATIONAL--GLOBAL AND DOMESTIC MINIMUM TAX) ACT 2024 (NO. 132, 2024) - NOTES

No. 132, 2024

Contents

Part 1--Preliminary

1 Short title

2 Commencement

3 Interpreting this Act

4 Geographical application of this Act

5 Application of this Act to Fiscal Years

Part 2--Liability

Division 1--Australian IIR tax (income inclusion rule tax)

6 Liability to tax--Australian IIR tax

7 Meaning of IIR Top-up Tax Amount

Division 2--Australian DMT tax (domestic minimum top-up tax)

8 Liability to tax--Australian DMT tax

9 Meaning of Domestic Top-up Tax Amount

Division 3--Australian UTPR tax (undertaxed profits rule tax)

10 Liability to tax--Australian UTPR tax

11 Meaning of UTPR Top-up Tax Amount

Part 3--Core Group and Entity concepts

Division 1--Groups, Entities and Permanent Establishments

12 Meaning of Applicable MNE Group

13 Meanings of Entity and Ultimate Parent Entity

14 Meanings of MNE Group and Group

15 Meaning of Group Entity

16 Meaning of Constituent Entity

17 Groups--general structure

18 Groups--structure with Permanent Establishment

19 Meanings of Permanent Establishment and Main Entity

Division 2--Excluded Entities

20 Meaning of Excluded Entity

21 Meaning of Governmental Entity

22 Meanings of International Organisation and Non-profit Organisation

23 Meanings of Pension Fund and Pension Services Entity

24 Meanings of Real Estate Investment Vehicle and Investment Fund

25 Meaning of Excluded Service Entity

Division 3--Joint Ventures and Multi-Parented MNE Groups

26 Joint Ventures

27 Meanings of JV Group and JV Subsidiary

28 Multi-Parented MNE Groups

Part 4--Rules

29 The Rules--general

30 The Rules--conferral of powers and functions

31 The Rules--incorporation by reference

32 The Rules--retrospective application

33 The Rules--miscellaneous

Part 5--Interpretation

Division 1--Definitions

34 Definitions

35 Currency translation of aggregate variation--definition of Material Competitive Distortion

Division 2--Elections

36 Five-Year Elections

37 Annual Elections

Division 3--Ownership Interests and Ownership Interest Percentages

38 Meanings of Ownership Interest, Direct Ownership Interest and Indirect Ownership Interest

39 Meanings of Ownership Interest Percentage, Direct Ownership Interest Percentage and Indirect Ownership Interest Percentage

Division 4--Location of Entities and Permanent Establishments

40 Location of an Entity that is not a Flow-through Entity

41 Location of an Entity that is a Flow-through Entity

42 Location of a Permanent Establishment

43 Dual-located entities

44 Change of location during a Fiscal Year

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

No. 132, 2024

An Act to implement a multinational top-up tax, and for related purposes

[Assented to 10 December 2024]

The Parliament of Australia enacts: