Akta Kewangan (No. 2) 2023 · Updated to 29 Dec 2023 · Chapter 6
172. The GloBE Loss Election
Feedback & supportA Filing Constituent Entity may make a GloBE
Loss Election for a jurisdiction in lieu of applying the rules provided under section 171.
Where a GloBE Loss Election is made for a jurisdiction, a GloBE Loss Deferred Tax Asset is established in each
Financial Year in which there is a Net GloBE Loss for the jurisdiction.
The Net GloBE Loss of a jurisdiction is the nil or negative amount, if any, computed in accordance with the following formula:
A - B where
A is the GloBE Income of all Constituent
Entities; and
B is the GloBE Losses of all Constituent
Entities.
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The GloBE Loss Deferred Tax Asset is an amount equal to the Net GloBE Loss in a Financial Year for the jurisdiction multiplied by the Minimum Rate.
The balance of the GloBE Loss Deferred Tax Asset is carried forward to subsequent Financial Years, reduced by the amount of GloBE Loss Deferred Tax Asset used in a Financial Year.
The GloBE Loss Deferred Tax Asset must be used in any subsequent Financial Year in which there is Net GloBE
Income for the jurisdiction in an amount equal to the lower of the Net GloBE Income multiplied by the Minimum Rate or the amount of available GloBE Loss Deferred Tax Asset.
Where the GloBE Loss Election is subsequently revoked, any remaining GloBE Loss Deferred Tax Asset is reduced to zero, effective as of the first day of the first Financial Year in which the GloBE Loss Election is no longer applicable and subsequently, the deferred tax assets and liabilities for the jurisdiction, if any, will be taken into account as if they had been calculated under sections 171 and 196 for the prior
Financial Year.
The GloBE Loss Election must be filed with the first information return of the Multinational Enterprise Group for the first Financial Year in which the Multinational Enterprise
Group has a Constituent Entity located in the jurisdiction for which the election is made.
GloBE Loss Election shall not be made for a jurisdiction with an Eligible Distribution Tax System under section 191.
A Flow-through Entity that is an Ultimate Parent
Entity of a Multinational Enterprise Group may make a
GloBE Loss Election under this section and when such an election is made, the GloBE Loss Deferred Tax Asset shall be calculated in accordance with subsections (1) to (9).
Kewangan (No. 2)
Notwithstanding subsection (10), the GloBE Loss
Deferred Tax Asset shall be calculated with reference to the
GloBE Loss of the Flow-through Entity after reduction in accordance with subsection 189(2).