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Taxation (Multinational—Global and Domestic Minimum Tax) Rules 2024

In force Administered by
- Department of the Treasury
This item is authorised by the following title:

• Taxation (Multinational—Global and Domestic Minimum Tax) Act 2024 Latest version View as made version F2026C00258 C02 27 March 2026

View document Legislative instrument Filter active Table of contents
- Chapter 1—Preliminary etc
- Part 1-1—Preliminary
- 1-5 Name
- 1-15 Authority
- Part 1-2—Excluded Entities
- 1-20 Excluded Entities
- Part 1-3—Currency conversion
- 1-25 Foreign currency translation—general
- Chapter 2—Liability amounts
- Part 2-1—Application of the IIR
- 2-5 Meaning of IIR Top-up Tax Amount
- Part 2-2—Allocation of Top-up Tax under the IIR
- 2-10 Meaning of Allocable Share
- 2-15 Meaning of Inclusion Ratio
- Part 2-3—IIR offset mechanism
- 2-20 IIR offset mechanism
- Part 2-4—Domestic Top-up Tax Amount
- 2-25 Meaning of Domestic Top-up Tax Amount
- 2-30 Amount of Domestic Top-up Tax Amount
- 2-35 Computing Top-up Tax for the purposes of section 2-30—principles
- 2-40 Domestic Top-up Tax Amount—special rule for consolidated groups
- Part 2-5—UTPR Top-up Tax Amount
- 2-45 Meaning of UTPR Top-up Tax Amount
- 2-50 UTPR Top-up Tax Amount—special rule for consolidated groups
- 2-55 Meaning of Total UTPR Top-up Tax Amount
- Part 2-6—Allocation of Top-Up Tax for the UTPR
- 2-60 Allocation of Total UTPR Top-Up Tax Amount to Australia
- 2-65 Meaning of UTPR Percentage
- 2-70 Distribution of allocated Total UTPR Top-Up Tax Amount to Australian Constituent Entity
- 2-75 Number of employees in a jurisdiction
- 2-80 Meaning of Net Book Value of Tangible Assets
- 2-85 Employees and the Net Book Value of Tangible Assets of Investment Entities and Securitisation Entities to be disregarded
- 2-90 Employees and the Net Book Value of Tangible Assets allocated to Permanent Establishment
- 2-95 Employees and the Net Book Value of Tangible Assets allocated from Flow-through Entity
- Chapter 3—Computation of GloBE Income or Loss
- Part 3-1—Financial accounts
- 3-5 Meaning of GloBE Income or Loss
- 3-10 Meaning of Financial Accounting Net Income or Loss
- Part 3-2—Adjustments to determine GloBE Income or Loss
- Division 1—Article 3.2.1 adjustments
- 3-15 Adjustment—net taxes expense
- 3-20 Adjustment—Excluded Dividends
- 3-25 Meaning of Excluded Dividends, Short-term Portfolio Shareholding and Portfolio Shareholding
- 3-30 Adjustment—Excluded Equity Gain or Loss
- 3-31 Adjustment—Excluded Equity Gain or Loss—election
- 3-32 Adjustment—Excluded Equity Gain or Loss—general case
- 3-35 Meaning of Excluded Equity Gain or Loss
- 3-40 Adjustment—insurance reserves
- 3-45 Adjustment—Included Revaluation Method Gain or Loss
- 3-50 Meaning of Included Revaluation Method Gain or Loss and Other Comprehensive Income
- 3-55 Adjustment—asymmetric foreign currency gains or losses
- 3-60 Meaning of tax functional currency and accounting functional currency
- 3-65 Adjustment—policy disallowed expenses
- 3-70 Adjustment—prior period errors and changes in accounting principles
- 3-75 Adjustment—accrued pension expense
- 3-80 Adjustment—qualified debt release amount
- 3-85 Meaning of qualified debt release amount
- Division 2—Other Article 3.2 adjustments
- 3-90 Adjustment—stock-based compensation expense
- 3-95 Adjustment—Arm’s Length Principle and tax/accounting permanent differences in respect of cross-border transactions
- 3-100 Adjustment—Arm’s Length Principle and transactions between Constituent Entities located in the same jurisdiction
- 3-105 Meaning of Arm’s Length Principle
- 3-110 Adjustment—Refundable Tax Credits and transferable tax credits
- 3-115 Qualified Refundable Tax Credits—amounts
- 3-120 Marketable Transferable Tax Credits—amounts
- 3-125 Meaning of Qualified Refundable Tax Credit, Non-Qualified Refundable Tax Credit and Refundable Tax Credit
- 3-130 Meaning of Marketable Transferable Tax Credit
- 3-135 Meaning of Marketable Price Floor
- 3-140 Meaning of Non-Marketable Transferable Tax Credit and Other Tax Credit
- 3-145 Adjustment—loss on transfer of purchased Non-Marketable Transferable Tax Credits
- 3-150 Adjustment—assets and liabilities that are subject to fair value or impairment accounting
- 3-155 Adjustment—Aggregate Asset Gain—election
- 3-160 Adjustment—Aggregate Asset Gain—effect
- 3-165 Adjustment—Aggregate Asset Gain—allocation of amounts
- 3-170 Meaning of Aggregate Asset Gain, Net Asset Gain, etc
- 3-175 Meaning of Look-back Period and Loss Year
- 3-180 Adjustment—Intragroup Financing Arrangements
- 3-185 Meaning of Intragroup Financing Arrangement
- 3-190 Meaning of Low-Tax Entity and High-Tax Counterparty
- 3-195 Meaning of Low-Tax Jurisdiction
- 3-200 Adjustment—election to apply consolidated accounting treatment
- 3-205 Adjustment—insurance company amounts charged to policyholders for taxes paid in respect of returns to policy holders
- 3-210 Adjustment—distributions paid or payable in respect of Additional Tier One Capital or Restricted Tier One Capital
- 3-215 Adjustments as necessary for Chapters 6 and 7
- Part 3-3—International Shipping Income exclusion
- 3-220 Adjustment—certain shipping income
- 3-225 Meaning of International Shipping Income, etc.
- 3-230 Meaning of Qualified Ancillary International Shipping Income, etc.
- 3-235 International traffic
- Part 3-4—Allocation of income or loss between a Main Entity and a Permanent Establishment
- 3-240 Meaning of Financial Accounting Net Income or Loss—Permanent Establishment
- 3-245 Adjustment of Permanent Establishment’s Financial Accounting Net Income or Loss
- 3-250 Computing GloBE Income or Loss of the Main Entity in respect of a Permanent Establishment
- Part 3-5—Allocation of income or loss from a Flow-through Entity
- 3-255 Constituent Entity that is a Flow-through Entity—Financial Accounting Net Income or Loss
- Chapter 4—Computation of Adjusted Covered Taxes
- Part 4-1—Adjusted Covered Taxes
- Division 1—General
- 4-5 Meaning of Adjusted Covered Taxes
- 4-10 Meaning of Accrued Current Covered Tax Expense
- 4-15 Meaning of Additions to Covered Taxes
- 4-20 Meaning of Reductions to Covered Taxes
- 4-25 No double counting of Covered Taxes
- 4-30 Additional Current Top-up Tax where MNE Group has no Net GloBE Income and tax falls short of expected tax
- 4-35 Additional Current Top-up Tax under section 4-30—Excess Negative Tax Expense Carry-forward
- Division 2—Qualified flow-through ownership interests
- 4-36 Application of Division
- 4-37 Excluded Equity Gain or Loss—qualified flow-through ownership interests—general case
- 4-38 Meaning of qualified flow-through ownership interest, investment amount and adjusted investment amount
- 4-39 Excluded Equity Gain or Loss—qualified flow-through ownership interests—proportional amortisation
- Part 4-2—Definition of Covered Taxes
- 4-40 Meaning of Covered Taxes
- Part 4-3—Allocation of Covered Taxes from one Constituent Entity to another Constituent Entity
- 4-45 Allocation of amounts from Constituent Entity to Permanent Establishment—general rule
- 4-50 Allocation of amounts from Tax Transparent Entity to a Constituent Entity-owner of the Tax Transparent Entity
- 4-55 Allocation of amounts from Constituent Entity-owner to CFC
- 4-60 Meaning of Blended CFC Tax Regime
- 4-65 Allocation of amounts from Constituent Entity-owner to Hybrid Entity or Reverse Hybrid Entity
- 4-70 Amounts accrued in financial accounts of Constituent Entity-owner on distribution from Constituent Entity to Constituent Entity-owner—allocation to Constituent Entity
- 4-75 Allocation of amounts in respect of Passive Income—inclusion in Constituent Entity’s Adjusted Covered Taxes
- 4-80 Allocation of amounts from Permanent Establishment to Main Entity
- Part 4-4—Mechanism to address temporary differences
- 4-85 Meaning of Total Deferred Tax Adjustment Amount
- 4-90 Total Deferred Tax Adjustment Amount—effect of Substitute Loss Carry-forward DTA
- 4-95 Meaning of Substitute Loss Carry-forward DTA
- 4-100 Effect of Recaptured Deferred Tax Liability
- 4-105 Meaning of Recaptured Deferred Tax Liability
- 4-110 Meaning of Recapture Exception Accrual
- 4-115 Meaning of Disallowed Accrual and Unclaimed Accrual
- Part 4-5—The GloBE Loss Election
- 4-120 GloBE Loss Election
- 4-125 GloBE Loss Deferred Tax Asset of an MNE Group
- 4-130 GloBE Loss Election for an Ultimate Parent Entity
- 4-135 GloBE Loss Deferred Tax Asset of an Ultimate Parent Entity
- Part 4-6—Post-filing adjustments and tax rate changes
- 4-140 Effect of adjustment to the liability for Covered Taxes
- 4-145 Tax rate changes and unpaid current tax expense
- Chapter 5—Computation of Effective Tax Rate
- Part 5-1—Determination of Effective Tax Rate
- 5-5 Meaning of Effective Tax Rate
- 5-10 Effective Tax Rate—Excess Negative Tax Expense administrative procedure
- 5-15 Meaning of Net GloBE Income and Net GloBE Loss
- Part 5-2—Top-up Tax
- 5-20 Meaning of Top-up Tax Percentage
- 5-25 Meaning of Excess Profit
- 5-30 Meaning of Jurisdictional Top-up Tax
- 5-35 Certain amounts of Domestic Top-up Tax disregarded
- 5-40 Top-up Tax of a Constituent Entity
- 5-45 Treatment of Stateless Constituent Entities
- Part 5-3—Substance-based Income Exclusion
- 5-50 Substance-based Income Exclusion Amount
- 5-55 Payroll Carve-out Amount
- 5-60 Meaning of Eligible Payroll Costs and Eligible Employee
- 5-65 Tangible Asset Carve-out Amount
- 5-70 Operating leases and intragroup finance leases
- 5-75 Meaning of Eligible Tangible Asset
- 5-80 Allocation of amounts between a Main Entity and a Permanent Establishment
- 5-85 Allocation of amounts in relation to Flow-through Entities
- 5-90 Allocation of amounts in relation to Deductible Dividend Regimes
- Part 5-4—Additional Current Top-up Tax
- 5-95 Additional Current Top-up Tax—ETR Adjustment Provisions
- 5-100 Additional Current Top-up Tax—Adjusted Covered Taxes less than expected amount
- Part 5-5—De minimis exclusion
- 5-105 De minimis exclusion
- 5-110 Meaning of Average GloBE Revenue etc.
- 5-115 Recalculations under an ETR Adjustment Provision
- Part 5-6—Minority-Owned Constituent Entities
- 5-120 Minority-Owned Constituent Entities that comprise a Minority-Owned Subgroup
- 5-125 Minority-Owned Constituent Entities that are not part of a Minority-Owned Subgroup
- 5-130 Meaning of Minority-Owned Constituent Entity and Minority-Owned Parent Entity
- 5-135 Meaning of Minority-Owned Subsidiary and Minority-Owned Subgroup
- Chapter 6—Corporate restructurings and holding structures
- Part 6-1—Application of consolidated revenue threshold to Group mergers and demergers
- 6-5 Applicable MNE Groups—mergers
- 6-10 Applicable MNE Groups—demergers
- Part 6-2—Constituent Entities joining and leaving an MNE Group
- Division 1—Transfers of Ownership Interests
- 6-15 Application of this Division
- 6-20 Target’s assets etc. included in MNE Group’s Consolidated Financial Statements
- 6-25 Target’s Financial Accounting Net Income or Loss and Adjusted Covered Taxes
- 6-30 Historical carrying value of target’s assets and liabilities
- 6-35 Target’s Eligible Payroll Costs and Tangible Asset Carve-out Amount
- 6-40 Deferred tax assets and deferred tax liabilities
- 6-45 Target’s Top-up Tax if Parent Entity in 2 or more MNE Groups
- Division 2—Transfer of Ownership Interests treated as transfer of assets and liabilities
- 6-50 Transfer of Ownership Interests treated as transfer of assets and liabilities
- Part 6-3—Transfer of assets and liabilities
- 6-55 Acquisitions and disposals of assets and liabilities
- 6-60 GloBE Reorganisations
- 6-65 Meaning of GloBE Reorganisation and Non-qualifying Gain or Loss
- 6-70 Fair value adjustments
- Part 6-4—Joint Ventures
- 6-75 Joint Ventures
- Part 6-5—Multi-Parented MNE Groups
- 6-80 Multi-Parented MNE Groups
- 6-85 Meaning of Multi-Parented MNE Group etc.
- Chapter 7—Tax neutrality and distribution regimes
- Part 7-1—Ultimate Parent Entity that is a Flow-through Entity
- 7-5 Flow-through Entity that is Ultimate Parent Entity—reduce GloBE Income and Covered Taxes
- 7-10 Flow-through Entity that is Ultimate Parent Entity—reduce GloBE Loss
- 7-15 Application of sections 7-5 and 7-10 to Permanent Establishment
- Part 7-2—Ultimate Parent Entity subject to Deductible Dividend Regime
- 7-20 Ultimate Parent Entity subject to Deductible Dividend Regime—reduce GloBE Income and Covered Taxes
- 7-25 Ultimate Parent Entity subject to Deductible Dividend Regime—reduce GloBE Income and Covered Taxes of other Constituent Entities
- 7-30 Meaning of Deductible Dividend Regime
- 7-35 Meaning of Deductible Dividend
- Part 7-3—Eligible Distribution Tax Systems
- 7-40 Deemed distribution tax election
- 7-45 Meaning of Eligible Distribution Tax System
- 7-50 Effect of election—amount in respect of deemed distribution tax added to Adjusted Covered Taxes
- 7-55 Deemed Distribution Tax Recapture Account
- 7-60 Recapture Account Loss Carry-forward
- 7-65 Effect of positive balance of Deemed Distribution Tax Recapture Account after 4 Fiscal Years—reduce Adjusted Covered Taxes for original year
- 7-70 Distribution taxes excluded in Adjusted Covered Taxes
- 7-75 Effect of Constituent Entity leaving jurisdiction, etc.
- Part 7-4—Effective Tax Rate computation for Investment Entities
- Division 1—Application
- 7-80 Application of this Part
- 7-85 Insurance Investment Entity treated as Investment Entity
- 7-90 Computing GloBE Income or Loss of Investment Entity
- Division 2—Allocable Share of Top-up Tax of Investment Entity
- 7-95 Allocable Share of Top-up Tax of Investment Entity
- Division 3—Top-up Tax of Investment Entity etc.
- 7-100 Top-up Tax etc. of Investment Entity—primary deeming rule
- 7-105 Computing Jurisdictional Top-up Tax for the purposes of computing Top-up Tax of Investment Entity
- 7-110 Meaning of Allocable GloBE Income or Loss
- Division 4—Top-up Tax of non-Investment Entity
- 7-115 Top-up Tax of Constituent Entity that is not Investment Entity
- Part 7-5—Investment Entity tax transparency election
- 7-120 Application of this Part
- 7-125 Investment Entity tax transparency election
- 7-130 Effect of election—Investment Entity treated as Tax Transparent Entity
- 7-135 Effect of revocation of election—Investment Entity treated as Tax Transparent Entity
- Part 7-6—Taxable distribution method election
- 7-140 Application of this Part
- 7-145 Taxable distribution method election
- 7-150 Effect of election—distributions and deemed distributions received by Constituent Entity-owner included in computing its GloBE Income, etc.
- 7-155 Effect of election—where positive balance of Undistributed Net GloBE Income Account after 3 Fiscal Years, increase Top-up Tax for tested year
- 7-160 Meaning of Undistributed Net GloBE Income Account
- 7-165 Deemed distributions
- 7-170 Effect of revoking election
- Chapter 8—Administration
- Part 8-2—Safe harbours
- Division 1—Preliminary
- 8-5 Application of this Part to Minority-Owned Constituent Entities, Joint Ventures and Investment Entities
- Division 2—Transitional CbCR Safe Harbour
- Subdivision A—Transitional CbCR Safe Harbour
- 8-10 Transitional CbCR Safe Harbour—general rule
- 8-15 Meaning of Transition Period
- Subdivision B—De minimis test
- 8-20 Meeting the De minimis test
- 8-25 Meaning of Total Revenue of MNE Group
- 8-30 Meaning of Profit (Loss) before Income Tax
- 8-35 Meaning of Qualified CbC Report
- Subdivision C—Simplified ETR test
- 8-40 Meeting the Simplified ETR test
- 8-45 Meaning of Simplified ETR
- 8-50 Meaning of Simplified Covered Taxes
- 8-55 Meaning of Transition Rate
- Subdivision D—Routine profits test
- 8-60 Meeting the Routine profits test
- 8-65 Meaning of CbCR Resident
- Subdivision E—Qualified Financial Statements
- 8-70 Meaning of Qualified Financial Statements
- 8-75 Use of same kind of Qualified Financial Statements
- Subdivision F—Special rules for particular circumstances
- 8-80 Transitional CbCR Safe Harbour—special rule for Joint Ventures
- 8-85 Transitional CbCR Safe Harbour—special rule for Ultimate Parent Entity that is Flow-through Entity
- 8-90 Transitional CbCR Safe Harbour—special rule for Deductible Dividend Regimes
- 8-95 Transitional CbCR Safe Harbour—special rules for Investment Entities and their Constituent Entity-owners
- 8-100 Transitional CbCR Safe Harbour—special rule for Net Unrealised Fair Value Loss
- 8-105 Transitional CbCR Safe Harbour—exclusions
- Subdivision G—Treatment of Hybrid Arbitrage Arrangements
- 8-110 Transitional CbCR Safe Harbour—Hybrid Arbitrage Arrangements
- 8-115 Meaning of Hybrid Arbitrage Arrangement
- 8-120 Meaning of deduction/non-inclusion arrangement
- 8-125 Meaning of duplicate loss arrangement
- 8-130 Meaning of duplicate tax recognition arrangement
- 8-135 Entities treated as Constituent Entities for purposes of this Subdivision
- 8-140 Financial statements for purposes of this Subdivision
- 8-145 Financial statements—Flow-through Entity
- 8-150 Arrangement treated as having been entered into after 15 December 2022
- Division 3—Simplified Calculations Safe Harbour
- Subdivision A—Simplified Calculations Safe Harbour
- 8-155 Simplified Calculations Safe Harbour—general rule
- Subdivision B—SC De minimis test, SC ETR test and SC Routine profits test
- 8-160 Meeting the SC De minimis test
- 8-165 Meeting the SC ETR test
- 8-170 Meeting the SC Routine profits test
- Subdivision C—NMCE simplified calculations
- 8-175 NMCE simplified calculations
- 8-180 NMCE simplified calculations election
- 8-185 Meaning of Non-material Constituent Entity (or NMCE)
- Subdivision D—Miscellaneous
- 8-190 Meaning of Total Revenue and Income Tax Accrued (Current Year) of Constituent Entity
- 8-195 Meaning of Relevant CbC Regulations and Country-by-Country Reporting regulations
- Division 4—Qualified Domestic Minimum Top-up Tax (QDMTT) Safe Harbour
- 8-200 QDMTT Safe Harbour—general rule
- 8-205 Disqualification from election—disputed amounts
- 8-210 Disqualification from election—switch-off rule
- 8-215 Meaning of OECD Securitisation Entity
- 8-220 Meaning of Securitisation Arrangement
- Division 5—Transitional UTPR Safe Harbour
- 8-225 Transitional UTPR Safe Harbour
- Chapter 9—Transition rules
- Part 9-1—Tax attributes upon transition
- 9-5 Pre-Transition Year deferred tax assets and liabilities
- 9-10 Pre-Transition Year deferred tax assets and liabilities—amounts
- 9-15 Pre-Transition Year intra-MNE Group asset transfers
- 9-20 Meaning of Transition Year
- Part 9-2—Transitional relief for the Substance-based Income Exclusion
- 9-25 Application of this Part
- 9-30 Transitional relief for Payroll Carve-out Amount
- 9-35 Transitional relief for Tangible Asset Carve-out Amount
- 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
- 9-45 If Australia is the Reference Jurisdiction, section 9-40 does not apply etc.
- 9-50 Meaning of Reference Jurisdiction
- Chapter 10—Definitions
- Part 10-1—Defined terms
- 10-5 Definitions
- 10-10 GloBE Implementation Framework
- 10-15 Qualified GloBE taxes
- 10-20 Direct Ownership Interest—interest differently classified
- Part 10-2—Definitions of Securitisation Entity, Flow-through Entity, Tax Transparent Entity, Reverse Hybrid Entity, and Hybrid Entity
- 10-25 Meaning of Securitisation Entity
- 10-30 Meaning of Flow-through Entity
- 10-35 Meaning of Tax Transparent Entity
- 10-40 Meaning of Reverse Hybrid Entity
- 10-45 Fiscal transparency and meaning of Tax Transparent Structure
- 10-50 Deemed Flow-through Entity and Tax Transparent Entity
- 10-55 Meaning of Hybrid Entity
- Part 10-3—Location of dual-located entities
- 10-60 Dual-located entities
- 10-65 Dual-located Parent Entity located in non-IIR jurisdiction
- Chapter 15—Application and transitional provisions
- 15-5 Application—Taxation (Multinational—Global and Domestic Minimum Tax) Amendment (2025 Measures No. 1) Rules 2025
- 15-10 Application—Taxation (Multinational—Global and Domestic Minimum Tax) Amendment (2026 Measures No. 1) Rules 2026
- Endnotes
- Endnote 1—About the endnotes
- Endnote 2—Abbreviation key
- Endnote 3—Legislation history
- Endnote 4—Amendment history