Malaysia legislation
Section 161
Section 161
(2)
An Intermediate Parent Entity located in Malaysia of a Multinational Enterprise Group that owns directly or indirectly an Ownership Interest in a Low-Taxed Constituent Entity at any time during a Financial Year shall pay a Multinational
Top-up Tax in an amount equal to its Allocable Share of such tax of that Low-Taxed Constituent Entity for the
Financial Year.
(3)
Subsection (2) shall not apply if—
(a)
the Ultimate Parent Entity of the Multinational
Enterprise Group is required to apply a Qualified
Income Inclusion Rule for that Financial Year; or
(b)
another Intermediate Parent Entity that owns directly or indirectly a Controlling Interest in the Intermediate
Parent Entity is required to apply a Qualified Income
Inclusion Rule for that Financial Year.
Finance (No. 2)
(4)
Notwithstanding subsections (1) to (3), a Partially-Owned
Parent Entity located in Malaysia that owns directly or indirectly an Ownership Interest in a Low-Taxed Constituent
Entity at any time during the Financial Year shall pay a
Multinational Top-up Tax in an amount equal to its Allocable
Share of such tax of that Low-Taxed Constituent Entity for the Financial Year.
(5)
Subsection (4) shall not apply if the Partially-Owned
Parent Entity is wholly owned directly or indirectly by another Partially-Owned Parent Entity that is required to apply a Qualified Income Inclusion Rule for that Financial Year.
(6)
A Parent Entity located in Malaysia shall apply the provisions of subsections (1) to (5) with respect to a Low-Taxed Constituent Entity that is not located in Malaysia.
Allocation of Multinational Top-up Tax under the Income
Inclusion Rule