Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p130
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 326148–329035

8‑185  Meaning of Non‑material Constituent Entity (or NMCE)
  A Non‑material Constituent Entity (or NMCE) is a Constituent Entity of an MNE Group for a Fiscal Year if:
 (a) where it is an Entity:
 (i) the Entity is not consolidated on a line‑by‑line basis in the Consolidated Financial Statements of the Ultimate Parent Entity of the MNE Group for the Fiscal Year solely on size or materiality grounds; and
 (ii) those Consolidated Financial Statements are described in paragraph (a) or (c) of the definition of Consolidated Financial Statements in section 34 of the Act; and
 (iii) those Consolidated Financial Statements are externally audited; and
 (iv) the external audit was performed in accordance with the auditing standards issued by the auditing standards board in the jurisdiction in which the Ultimate Parent Entity of the MNE Group is located; and
 (v) the report from the external audit is not qualified in a respect that is relevant to the matter mentioned in subparagraph (i); and
 (vi) if the Entity's Total Revenue for the Fiscal Year exceeds 50 million Euros—its financial accounts are prepared in accordance with an Acceptable Financial Accounting Standard or an Authorised Financial Accounting Standard; and
 (b) where it is a Permanent Establishment—the Main Entity in respect of the Permanent Establishment is an NMCE for the Fiscal Year under paragraph (a) of this section.

Subdivision D—Miscellaneous

8‑190  Meaning of Total Revenue and Income Tax Accrued (Current Year) of Constituent Entity
 (1) The Total Revenue of a Constituent Entity of an MNE Group for a Fiscal Year means the Constituent Entity's total revenue for the Fiscal Year as determined in accordance with the MNE Group's Relevant CbC Regulations.
 (2) The Income Tax Accrued (Current Year) of a Constituent Entity of an MNE Group for a Fiscal Year means the Constituent Entity's income tax accrued (current year) for the Fiscal Year as determined in accordance with the MNE Group's Relevant CbC Regulations.

8‑195  Meaning of Relevant CbC Regulations and Country‑by‑Country Reporting regulations
 (1) Relevant CbC Regulations of an MNE Group means:
 (a) if the jurisdiction in which the Ultimate Parent Entity of the MNE Group is located (the UPE jurisdiction) does not have Country‑by‑Country Reporting regulations and the MNE Group is not required to file a Country‑by‑Country Report in any jurisdiction—the following documents:
 (i) the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, as approved by the Council of the OECD and last amended on 7 January 2022;
 (ii) Guidance on the Implementation of Country‑by‑Country Reporting: BEPS Action 13 (Updated May 2024) of the OECD; or
 (b) if paragraph (a) does not apply and the MNE Group is does not file a Country‑by‑Country Report in the UPE Jurisdiction—the Country‑by‑Country Reporting regulations of the