Document ID: chunk:federal_register_of_legislation:F2024L01740:reg:10:p1
Version: federal_register_of_legislation:F2024L01740
Segment Type: reg
Provision Reference: reg 10 (pt 1/10)
Character Range: 351058–353727

10                                                        2032                           5.4%

Part 9‑3—Exclusion from the UTPR of MNE Groups in the initial phase of their international activity

9‑40  Total UTPR Top‑up Tax Amount reduced to zero
 (1) The Total UTPR Top‑up Tax Amount for an MNE Group for a Fiscal Year covered by subsection (2) is taken to be zero if:
 (a) the Constituent Entities of the MNE Group are located in no more than 6 jurisdictions for the Fiscal Year; and
 (b) the sum of the Net Book Value of Tangible Assets for the Fiscal Year of each Constituent Entity of the MNE Group located in a jurisdiction other than the Reference Jurisdiction of the MNE Group does not exceed 50 million Euros.
 (2) This subsection covers a Fiscal Year if:
 (a) it starts on or after the first day of the first Fiscal Year for which the MNE Group is an Applicable MNE Group; and
 (b) it starts on or after 1 January 2024.
 (3) For the purposes of subsection (1), disregard a Constituent Entity of the MNE Group that is an Investment Entity or an Insurance Investment Entity.
 (4) For the purposes of paragraph (1)(b), in relation to a tangible asset of a Stateless Constituent Entity of the MNE Group:
 (a) if the tangible asset is physically located in the Reference Jurisdiction throughout the Fiscal Year—treat it as a tangible asset of a Constituent Entity of the MNE Group located in the Reference Jurisdiction; or
 (b) otherwise—treat it as a tangible asset of a Constituent Entity of the MNE Group located in a jurisdiction other than the Reference Jurisdiction.

9‑45  If Australia is the Reference Jurisdiction, section 9‑40 does not apply etc.
 (1) This section applies in relation to a Fiscal Year covered by subsection 9‑40(2) if:
 (a) disregarding subsection (2) of this section, subsection 9‑40(1) applies in relation to the Fiscal Year; and
 (b) Australia is the Reference Jurisdiction of the MNE Group.
 (2) Subsection 9‑40(1) does not apply in relation to the Fiscal Year.
 (3) For the purposes of Part 2‑5, the Top‑up Tax for the Fiscal Year of a Low‑Taxed Constituent Entity of the MNE Group is taken to be zero if the Low‑Taxed Constituent Entity is located in Australia.
 (4) For the purposes of Part 2‑6:
 (a) the UTPR Percentage of each jurisdiction other than Australia is deemed to be zero; and
 (b) the UTPR Percentage of Australia is deemed to be 100%.

9‑50  Meaning of Reference Jurisdiction
 (1) The Reference Jurisdiction of an MNE Group is the jurisdiction where the MNE Group has the highest total value of tangible assets for the first Fiscal Year starting on or after 1 January 2024 for which the MNE Group is an Applicable