Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p115
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 287773–290449

this Part; and
 (b) treat the purposes mentioned in subsection 7‑115(1) (Investment Entities treated as not being Constituent Entities of the MNE Group) as including the purposes of this Part.
Note 1: As a result of this subsection, this Part is applied separately to Investment Entities.
Note 2: For the application of Division 2 of this Part to Investment Entities, see section 8‑95.

Division 2—Transitional CbCR Safe Harbour

Subdivision A—Transitional CbCR Safe Harbour

8‑10  Transitional CbCR Safe Harbour—general rule
 (1) An MNE Group's Jurisdictional Top‑up Tax for a jurisdiction for a Fiscal Year is taken to be zero if:
 (a) an election for the MNE Group under subsection (3) applies to the jurisdiction and the Fiscal Year; and
 (b) the MNE Group meets any of the following tests for the jurisdiction for the Fiscal Year:
 (i) the De minimis test;
 (ii) the Simplified ETR test;
 (iii) the Routine profits test.
Note: Despite this subsection, Top‑up Tax may still need to be computed for certain Investment Entities of the MNE Group: see subsection 8‑95(4).
 (2) Subsection (1) only applies in relation to the MNE Group, the jurisdiction and the Fiscal Year (the application year) if:
 (a) the application year is the first Fiscal Year (the initial year) to which the following apply:
 (i) the Fiscal Year is covered by the Transition Period;
 (ii) one or more Constituent Entities of the MNE Group are located in the jurisdiction for the Fiscal Year; or
 (b) subsection (1) has applied in relation to the MNE Group, the jurisdiction and the following Fiscal Years:
 (i) the initial year;
 (ii) if there are one or more Fiscal Years between the initial year and the application year—each of those Fiscal Years.

Election
 (3) A Filing Constituent Entity for an MNE Group may make an election for the MNE Group under this subsection that applies to:
 (a) a specified Fiscal Year covered by the Transition Period; and
 (b) a specified jurisdiction.
 (4) Unless the election is revoked, it applies to the specified Fiscal Year and the specified jurisdiction.

8‑15  Meaning of Transition Period
  A Fiscal Year is covered by the Transition Period if it:
 (a) starts on or before 31 December 2026; and
 (b) ends on or before 30 June 2028.

Subdivision B—De minimis test

8‑20  Meeting the De minimis test
 (1) An MNE Group meets the De minimis test for a jurisdiction for a Fiscal Year if:
 (a) the MNE Group's Total Revenue for the jurisdiction for the Fiscal Year is less than 10 million Euros; and
 (b) the MNE Group's Profit (Loss) before Income Tax for the jurisdiction for the Fiscal Year is less than 1 million Euros.
 (2) However, the MNE Group does not meet