Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p18
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 45566–48195

the MNE Group holds an Ownership Interest in the Joint Venture or JV Subsidiary.
Note: The Joint Venture or JV Subsidiary may be located in Australia.
 (7) The amount of the reduction is the portion of the Parent Entity's Allocable Share of the Top‑up Tax that is brought into charge by the Parent Entity under a Qualified IIR.

Part 2‑6—Allocation of Top‑Up Tax for the UTPR

2‑60  Allocation of Total UTPR Top‑Up Tax Amount to Australia
 (1) For the purposes of this instrument, the Total UTPR Top‑up Tax Amount for an MNE Group for a Fiscal Year is allocated to Australia in accordance with this section.
 (2) The amount of the Total UTPR Top‑up Tax Amount allocated to Australia is:
 (a) the Total UTPR Top‑up Tax Amount;
multiplied by:
 (b) the MNE Group's UTPR percentage for the Fiscal Year for Australia.

2‑65  Meaning of UTPR Percentage
 (1) An MNE Group's UTPR Percentage for a Fiscal Year for a jurisdiction that has a Qualified UTPR in force for the Fiscal Year is the percentage computed under the following formula:
where:
Number of employees in all UTPR jurisdictions means the total number of employees of all Constituent Entities of the MNE Group located in each jurisdiction that has a Qualified UTPR in force for the Fiscal Year.
Number of employees in the jurisdiction means the total number of employees of all Constituent Entities of the MNE Group located in the jurisdiction.
Total value of tangible assets in all UTPR jurisdictions means the sum of the Net Book Value of tangible assets for the Fiscal Year of all Constituent Entities of the MNE Group located in each jurisdiction that has a Qualified UTPR in force for the Fiscal Year.
Total value of tangible assets in the jurisdiction means the sum of the Net Book Value of tangible assets for the Fiscal Year of all Constituent Entities of the MNE Group located in the jurisdiction.
Note 1: Australia is a jurisdiction that has a Qualified UTPR in force for the Fiscal Year.
Note 2: For the treatment of Investment Entities, Insurance Investment Entities and Securitisation Entities, see section 2‑85.
 (2) Despite subsection (1), the MNE Group's UTPR Percentage for the Fiscal Year (the current Fiscal Year) for the jurisdiction is zero if:
 (a) an amount of the Total UTPR Top‑up Tax Amount for the MNE Group for a prior Fiscal Year is allocated to the jurisdiction for the prior Fiscal Year under the provisions of a law of the jurisdiction that is equivalent to this Part; and
 (b) that amount (the allocated amount) has not resulted in the Constituent Entities of the MNE Group located in the jurisdiction having an additional cash tax expense