Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p117
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 292663–295459

tax mentioned in that subsection.
 (4) For the purposes of subsection (1), if:
 (a) a Constituent Entity of the MNE Group is a Permanent Establishment; and
 (b) a loss arising in respect of the Permanent Establishment is allocated to the Permanent Establishment (and not to the Main Entity in respect of the Permanent Establishment);
increase the MNE Group's profit or loss before income tax for the jurisdiction in which the Main Entity is located by the amount of the loss.

8‑35  Meaning of Qualified CbC Report
 (1) Qualified CbC Report in relation to a jurisdiction means a Country‑by‑Country Report that is prepared in relation to the jurisdiction, and filed, using Qualified Financial Statements.
 (2) Subsections (3) and (4) apply if an MNE Group is not required have a Qualified CbC Report in relation to a jurisdiction.
 (3) For the purposes of this Division, if:
 (a) the jurisdiction in which the Ultimate Parent Entity of the MNE Group is located has requirements for the filing of Country‑by‑Country Reports; and
 (b) on the assumption that the MNE Group filed a Country‑by‑Country Report in accordance with those requirements, data from the MNE Group's Qualified Financial Statements would have been reported as total revenue and profit or loss before tax in that Country‑by‑Country Report;
treat that data as being reported in the MNE Group's Qualified CbC Report.
 (4) For the purposes of this Division, if:
 (a) the jurisdiction in which the Ultimate Parent Entity of the MNE Group is located does not have requirements for the filing of Country‑by‑Country Reports; and
 (b) on the assumption that the MNE Group filed a Country‑by‑Country Report in accordance with the following, data from the MNE Group's Qualified Financial Statements would have been reported as total revenue and profit or loss before tax in that Country‑by‑Country Report:
 (i) Transfer Pricing Documentation and Country‑by‑Country Reporting, Action 13 ‑ 2015 Final Report of the OECD/G20 Base Erosion and Profit Shifting Project;
 (ii) Guidance on the Implementation of Country‑by‑Country Reporting: BEPS Action 13 (Updated May 2024) of the OECD;
treat that data as being reported in the MNE Group's Qualified CbC Report.

Subdivision C—Simplified ETR test

8‑40  Meeting the Simplified ETR test
  An MNE Group meets the Simplified ETR test for a jurisdiction for a Fiscal Year if the MNE Group's Simplified ETR for the jurisdiction for the Fiscal Year is equal to or greater than the Transition Rate for the Fiscal Year.

8‑45  Meaning of Simplified ETR
  An MNE Group's Simplified ETR, for a jurisdiction for a Fiscal Year, is the amount equal to:
 (a) the MNE Group's Simplified Covered Taxes for the jurisdiction for the Fiscal Year;
divided by:
 (b) the MNE Group's Profit (Loss) before Income Tax for