Part 3Multinational top-up tax

Chapter 9Special provision for investment entities, joint venture groups and minority-owned members

Investment entities

221Substance based income exclusion for investment entity

1

The substance based income exclusion for an investment entity is to be determined by adding together—

a

the payroll carve-out amount of the entity, and

b

the tangible asset carve-out amount of the entity,

2

Section 195(4) applies to the determination of the payroll carve-out amount of the entity as it applies for members of the group that are not investment entities.

3

Section 195(5) applies to the determination of the tangible asset carve-out amount of the entity as it applies for members of the group that are not investment entities.

4

If the filing member for the group elects not to calculate the substance based income exclusion for the period in a self-assessment (see Schedule 12), the exclusion is nil.

5

Paragraph 2 of Schedule 15 (annual elections) applies to an election under subsection (4).