8‑10 Transitional CbCR Safe Harbour—gene8‑10 Transitional CbCR Safe Harbour—general rule

8‑10 Transitional CbCR Safe Harbour—general rule

(1) An MNE Group’s Jurisdictional Top‑up Tax for a jurisdiction for a Fiscal Year is taken to be zero if: (a) an election for the MNE Group under subsection (3) applies to the jurisdiction and the Fiscal Year; and (b) the MNE Group meets any of the following tests for the jurisdiction for the Fiscal Year: (i) the De minimis test; (ii) the Simplified ETR test; (iii) the Routine profits test.

Note: Despite this subsection, Top‑up Tax may still need to be computed for certain Investment Entities of the MNE Group: see subsection 8‑95(4).

(2) Subsection (1) only applies in relation to the MNE Group, the jurisdiction and the Fiscal Year (the application year) if: (a) the application year is the first Fiscal Year (the initial year) to which the following apply: (i) the Fiscal Year is covered by the Transition Period; (ii) one or more Constituent Entities of the MNE Group are located in the jurisdiction for the Fiscal Year; or (b) subsection (1) has applied in relation to the MNE Group, the jurisdiction and the following Fiscal Years: (i) the initial year; (ii) if there are one or more Fiscal Years between the initial year and the application year—each of those Fiscal Years. Election (3) A Filing Constituent Entity for an MNE Group may make an election for the MNE Group under this subsection that applies to: (a) a specified Fiscal Year covered by the Transition Period; and (b) a specified jurisdiction. (4) Unless the election is revoked, it applies to the specified Fiscal Year and the specified jurisdiction.