Akta Kewangan (No. 2) 2023 · Updated to 29 Dec 2023 · Chapter 7
174. Determination of Effective Tax Rate
Feedback & supportThe Effective Tax Rate of the Multinational Enterprise
Group for a jurisdiction with Net GloBE Income shall be calculated for each Financial Year.
Kewangan (No. 2)
The Effective Tax Rate of the Multinational Enterprise
Group for a jurisdiction is an amount determined in accordance with the following formula:
A
B where
A is the sum of the Adjusted Covered Taxes of each Constituent Entity located in the jurisdiction for the Financial Year; and
B is the Net GloBE Income of the jurisdiction for the Financial Year.
For the purposes of this Chapter, each Stateless
Constituent Entity shall be treated as a single Constituent
Entity located in a separate jurisdiction.
The Net GloBE Income of a jurisdiction for a Financial
Year is the positive amount, if any, computed in accordance with the following formula:
A – B where
A is the GloBE Income of all Constituent
Entities, being the sum of the GloBE
Income of all Constituent Entities located in the jurisdiction determined in accordance with Chapter 5 of this Part for the
Financial Year; and
B is the GloBE Losses of all Constituent
Entities, being the sum of the GloBE
Losses of all Constituent Entities located in the jurisdiction determined in accordance with Chapter 5 of this Part for the
Financial Year.
Undang-Undang Malaysia 98
The adjusted Covered Taxes and GloBE Income or
Loss of Constituent Entities that are Investment Entities and Insurance Investment Entities are excluded from the determination of the Effective Tax Rate in subsections (1) to (3)
and the determination of Net GloBE Income in subsection (4).