Document ID: chunk:federal_register_of_legislation:C2025C00014:section:177k
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 177K
Character Range: 1664050–1665124

177K  Diverted profits tax—$25 million income test
 (1) This section applies in relation to the relevant taxpayer, in relation to the DPT tax benefit, if the sum of the following does not exceed $25 million:
 (a) the assessable income of the relevant taxpayer for the year of income mentioned in paragraph 177J(1)(a);
 (b) the exempt income of the relevant taxpayer for that year of income;
 (c) the non‑assessable non‑exempt income of the relevant taxpayer for that year of income;
 (d) the assessable income of each entity covered by subsection (2) for that year of income;
 (e) if the DPT tax benefit is a tax benefit mentioned in paragraph 177C(1)(a)—the amount of the DPT tax benefit.
 (2) An entity is covered by this subsection if for the year of income mentioned in paragraph 177J(1)(a):
 (a) the entity is an associate (within the meaning given by section 318) of the relevant taxpayer; and
 (b) both the entity and the relevant taxpayer:
 (i) are members of the same global group; and
 (ii) are significant global entities because they are members of that group.