Akta Kewangan (No. 2) 2023 · Updated to 29 Dec 2023 · Chapter 4
161. Application of Income Inclusion Rule
Feedback & supportA Constituent Entity which is the Ultimate 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 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.
Kewangan (No. 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.
Subsection (2) shall not apply if—
the Ultimate Parent Entity of the Multinational
Enterprise Group is required to apply a Qualified
Income Inclusion Rule for that Financial Year; or
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.
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.
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.
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