Part 3Multinational top-up tax

Chapter 1Introduction and charge

124How to calculate top-up amounts and attribute them

1

Generally, a member of a multinational group in a territory will have a top-up amount for an accounting period if—

a

the effective tax rate of the members of the group in that territory for that period is less than 15%, and

b

that member has profits for that period.

2

Chapter 3 of this Part sets out how to determine the effective tax rate of the members of a multinational group in a territory by reference to the profits of, and the taxes payable by, those members in that territory.

3

Chapter 4 of this Part sets out how to calculate the profits of members of a multinational group.

4

Chapter 5 of this Part sets out—

a

which taxes (referred to in this Part as “covered taxes”) are to be considered in determining the effective tax rate of those members, and

b

how to determine the amount of covered taxes allocated to those members.

5

Chapter 6 of this Part sets out how to use the effective tax rate and profits of the members of a multinational group to determine the top-up amounts of those members.

6

Chapter 7 of this Part sets out how to attribute those top-up amounts to a responsible member of the group.

7

Chapter 8 of this Part contains provisions about—

a

additional top-up amounts, and

b

further adjustments that may need to be made (including provision about adjustments for restructuring of multinational groups).

8

Chapter 9 of this Part sets out special provision for investment entities, joint venture groups and minority owned members (including provision that applies to those entities instead of provision in the previous Chapters).

9

Chapter 10 of this Part contains definitions and other provisions relevant to the calculations and other determinations to be made for the purposes of multinational top-up tax and Chapter 11 contains general provision.