Malaysia legislation
Section 195
Section 195
(2)
An election made for a jurisdiction under subsection (1)
shall not apply in circumstances where—
(a)
Malaysia could be allocated Multinational Top-up
Tax under this Part if the Effective Tax Rate for the safe harbour jurisdiction computed in accordance with Chapter 7 of this Part was below the Minimum
Rate;
Act 851
(b)
the Director General notifies the Liable Constituent
Entity within thirty-six months after the filing of the information return of specific facts and circumstances that may have materially affected the eligibility of the Constituent Entities located in the safe harbour jurisdiction for the relevant safe harbour and invites the Liable Constituent Entity to clarify within six months the effect of those facts and circumstances on the eligibility of those Constituent Entities for that safe harbour; and
(c)
the Liable Constituent Entity fails to demonstrate within the response period that those facts and circumstances did not materially affect the eligibility of the Constituent Entities for the relevant safe harbour.
(3)
For the purposes of this section, “Liable Constituent
Entity” means one or several Constituent Entities located in Malaysia that could be liable for Multinational Top-up
Tax or subject to an adjustment under Chapter 4 of this Part if the GloBE Safe Harbour in subsection (1) did not apply.