Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p17
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 17/20)
Character Range: 6832562–6835169

other benefit worked out by reference to the amount of the foreign income tax (other than a reduction in the amount of the foreign income tax).

770‑145  When foreign income tax is considered not paid—foreign DMT tax reduced by amount of benefit
 (1) This section applies if:
 (a) an entity is:
 (i) a *Group Entity of an *Applicable MNE Group; or
 (ii) a *GloBE Joint Venture of an Applicable MNE Group; or
 (iii) a *GloBE JV Subsidiary of a GloBE Joint Venture of an Applicable MNE Group; and
 (b) the entity pays an amount of *foreign income tax imposed by a tax law of a foreign country; and
 (c) the foreign income tax is *foreign DMT tax; and
 (d) the entity, or another entity of a kind mentioned in subparagraph (a)(i), (ii) or (iii), is entitled to an amount of any of the following benefits in respect of the entity:
 (i) a refundable tax credit (whether by way of cash or cash equivalent, or through an offset of unrelated, existing liabilities), to the extent that the tax credit is computed as an excess over the entity's income tax liability;
 (ii) consideration received for the transfer of a transferable tax credit to which the entity was entitled in respect of foreign income tax of the foreign country;
 (iii) cash or cash equivalent amounts recognised as government grants under *accounting standard AASB 120 (or, if that standard does not apply to the entity, a comparable accounting standard that applies to the entity under a *foreign law);
 (iv) if the foreign country is specified in a determination under subsection (3)—a benefit of a kind specified in the determination in respect of the foreign country; and
 (e) both of the following are in relation to the same *foreign tax period in relation to the entity:
 (i) the foreign income tax;
 (ii) the benefits.
 (2) Despite anything else in this Division, this Act applies to the entity as if the amount of *foreign DMT tax were reduced by the amount of the benefit (but not below zero).
 (3) The Minister may, by legislative instrument, make a determination specifying a benefit in respect of a specified foreign country.
 (4) In making the determination, the Minister must have regard to the following:
 (a) the extent (if any) to which the benefit has been designed to be available to *Applicable MNE Groups;
 (b) the extent (if any) to which the benefit could increase the amount of *foreign DMT tax payable in the foreign country;
 (c) the extent (if any) to which the benefit could increase the amount of a *tax offset under this Division;
 (d) the nature of any other benefit specified in the determination.
 (5) A reference