Section 169 — AKTA KEWANGAN (NO. 2) 2023

(a)

the net amount of its Additions to Covered Taxes for the Financial Year and Reductions to Covered

Taxes for the Financial Year;

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(b)

the Total Deferred Tax Adjustment Amount as determined under section 171; and

(c)

any increase or decrease in Covered Taxes recorded in equity or Other Comprehensive Income relating to amounts included in the computation of GloBE

Income or Loss that will be subject to tax under local tax rules.

(2)

No amount of Covered Taxes may be taken into account more than once.

(3)

In a Financial Year in which there is no Net GloBE

Income for a jurisdiction, if the Adjusted Covered Taxes for a jurisdiction are less than zero and less than the Expected

Adjusted Covered Taxes Amount the Constituent Entities in that jurisdiction shall be treated as having Additional

Current Multinational Top-up Tax for the jurisdiction under section 181 arising in the current Financial Year equal to the difference between these amounts.

(4)

For the purposes of subsection (3) the Expected Adjusted

Covered Taxes Amount is equal to the GloBE Income or Loss for a jurisdiction multiplied by the Minimum Rate.

(5)

For the purposes of paragraph 1(a), “Additions to

Covered Taxes” means the sum of—

(a)

any amount of Covered Taxes of a Constituent Entity for the Financial Year accrued as an expense in the profit before taxation in the financial accounts;

(b)

any amount of GloBE Loss Deferred Tax Asset of a Constituent Entity for the Financial Year used under subsection 172(6);

(c)

any amount of Covered Taxes of a Constituent Entity for the Financial Year that is paid in the Financial

Year and that relates to an uncertain tax position where that amount has been treated for a previous

Financial Year as a Reduction to Covered Taxes under paragraph (6)(d) of the definition of “Reductions to Covered Taxes”; and

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(d)

any amount of credit or refund of a Constituent Entity for the Financial Year in respect of a Qualified

Refundable Tax Credit that is recorded as a reduction to the current tax expense.

(6)

In this section, “Reductions to Covered Taxes” means the sum of—

(a)

the amount of current tax expense with respect to income excluded from the computation of GloBE

Income or Loss under Chapter 5 of this Part;

(b)

any amount of credit or refund in respect of a Non-Qualified Refundable Tax Credit that is not recorded as a reduction to the current tax expense;

(c)

any amount of Covered Taxes refunded or credited, except for any Qualified Refundable Tax Credit, to a Constituent Entity that was not treated as an adjustment to current tax expense in the financial accounts;

(d)

the amount of current tax expense which relates to an uncertain tax position; and

(e)

any amount of current tax expense that is not expected to be paid within three years of the last day of the

Financial Year.

Allocation of Covered Taxes from one Constituent Entity to another Constituent Entity