Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p136
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 341530–344306

the current year under section 4‑105 in respect of a deferred tax liability mentioned in paragraph (2)(a) of this section, section 4‑100 does not apply in relation to that Recaptured Deferred Tax Liability.

9‑10  Pre‑Transition Year deferred tax assets and liabilities—amounts
 (1) For the purposes of subsection 9‑5(2), take account of a deferred tax asset or deferred tax liability:
 (a) if it relates to a tax credit (including a tax credit carry‑forward or a foreign tax credit) and is reflected or disclosed in the Constituent Entity's financial accounts—in the amount set out in subsection (3); or
 (b) otherwise—in the amount set out in subsection (4).
 (2) For the purposes of subsection (1), disregard the impact of any valuation adjustment or accounting recognition adjustment with respect to the amount of a deferred tax asset.
 (3) For the purposes of paragraph (1)(a), the amount is as follows:
 (a) if the tax rate used to determine the deferred tax asset or deferred tax liability is below the Minimum Rate—the amount of the deferred tax asset or deferred tax liability reflected or disclosed in the financial accounts;
 (b) otherwise—the amount computed using the following formula:

  where:
  applicable domestic tax rate means the tax rate in the Fiscal Year preceding the Transition Year;
  deferred tax asset or liability means the amount of the deferred tax asset or deferred tax liability reflected or disclosed in the financial accounts.
 (4) For the purposes of paragraph (1)(b), the amount is as follows:
 (a) if paragraph (b) of this subsection does not apply—the lesser of the following:
 (i) the amount of the deferred tax asset or deferred tax liability reflected or disclosed in the financial accounts;
 (ii) that amount recast at the Minimum Rate;
 (b) in the case of a deferred tax asset that is attributable to a loss that, assuming the Constituent Entity computed its GloBE Income or Loss for the Fiscal Year in which the loss arose, would have been taken into account in that computation—the amount of the deferred tax asset reflected in the financial accounts recast at the Minimum Rate.

9‑15  Pre‑Transition Year intra‑MNE Group asset transfers
 (1) This section applies if:
 (a) a transaction (including any transfer of rights) occurs, or is deemed to occur, in relation to an asset (including any item of economic value) owned by an Entity (the disposing Entity) in which:
 (i) an Entity (the acquiring Entity) creates or increases the carrying value of the asset in its financial accounts and the disposing Entity recognises the corresponding amount of income in its financial accounts; or
 (ii) an Entity (the acquiring Entity) records the carrying value of the asset in its financial accounts at cost and a deferred tax asset based