Akta Kewangan (No. 2) 2023 · Updated to 29 Dec 2023 · Chapter 4
162. Inclusion Rule
Feedback & supportA Parent Entity’s Allocable Share of the Multinational
Top-up Tax of a Low-Taxed Constituent Entity is an amount equal to the Multinational Top-up Tax of the Low-Taxed
Constituent Entity as calculated under Chapter 7 of this Part multiplied by the Parent Entity’s Inclusion Ratio for the
Low-Taxed Constituent Entity for the Financial Year.
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A Parent Entity’s Inclusion Ratio for a Low-Taxed
Constituent Entity for a Financial Year shall be determined in accordance with the formula:
A – B
C where
A is the GloBE Income of the Low-Taxed
Constituent Entity for the Financial Year;
B is the amount of such income attributable to Ownership Interests held by other owners; and
C is the GloBE Income of the Low-Taxed
Constituent Entity for the Financial Year.
The amount of GloBE Income attributable to Ownership
Interests in a Low-Taxed Constituent Entity held by other owners is the amount that would have been treated as attributable to such owners under the principles of the
Acceptable Financial Accounting Standard used in the
Ultimate Parent Entity’s Consolidated Financial Statements if the Low-Taxed Constituent Entity’s net income were equal to its GloBE Income and—
the Parent Entity had prepared Consolidated Financial
Statements in accordance with that accounting standard referred to as the hypothetical Consolidated
Financial Statements;
the Parent Entity owned a Controlling Interest in the
Low-Taxed Constituent Entity such that all of the income and expenses of the Low-Taxed Constituent
Entity were consolidated on a line-by-line basis with those of the Parent Entity in the hypothetical
Consolidated Financial Statements;
Kewangan (No. 2)
all of the Low-Taxed Constituent Entity’s GloBE
Income were attributable to transactions with persons that are not Group Entities; and
all Ownership Interests not directly or indirectly held by the Parent Entity were held by persons other than Group Entities.
In the case of a Flow-through Entity, GloBE Income under subsections (1) to (3) shall not include any income allocated, pursuant to subsection 168(3), to an owner that is not a Group Entity.