Akta Kewangan (No. 2) 2023 · Updated to 29 Dec 2023 · Chapter 8
188. Multi-Parented Multinational Enterprise Groups
Feedback & supportThe following provisions shall apply to Multi-Parented
Multinational Enterprise Groups:
the Entities and Constituent Entities of each Group are treated as members of a single Multinational
Enterprise Group for the purposes of this Part;
an Entity other than an Excluded Entity shall be treated as a Constituent Entity if it is consolidated on a line-by-line basis by the Multi-Parented
Multinational Enterprise Group or its Controlling
Interests are held by Entities in the Multi-Parented
Multinational Enterprise Group;
the Consolidated Financial Statements of the
Multi-Parented Multinational Enterprise Group shall be the Consolidated Financial Statements referred to in the definition of Stapled Structure or Dual-listed Arrangement as relevant prepared under an Acceptable Financial Accounting Standard, which is deemed to be the accounting standard of the Ultimate Parent Entity;
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the Ultimate Parent Entities of the separate Groups that comprise the Multi-Parented Multinational
Enterprise Group shall be the Ultimate Parent Entities of the Multi-Parented Multinational Enterprise Group;
the Parent Entities of the Multi-Parented Multinational
Enterprise Group including each Ultimate Parent
Entity located in Malaysia shall apply the Income
Inclusion Rule in accordance with Chapter 4 of this
Part with respect to their Allocable Share of the
Top-up Tax of the Low-Taxed Constituent Entity;
and
the Ultimate Parent Entities are required to submit the information return in accordance with section 201, unless they appoint a single Designated Filing
Entity and that return shall include the information concerning each of the Groups that comprise the
Multi-Parented Multinational Enterprise Group.
When applying this Part in respect of a Multi-Parented
Multinational Enterprise Group, references to an Ultimate
Parent Entity shall apply as if they were references to multiple
Ultimate Parent Entities.
For the purposes of this section—
“Dual-listed Arrangement” means an arrangement entered into by two or more Ultimate Parent Entities of separate
Groups, under which—
the Ultimate Parent Entities agree to combine their business by contract alone;
pursuant to contractual arrangements the Ultimate
Parent Entities will make distributions with respect to dividends and in liquidation to their shareholders based on a fixed ratio;
their activities are managed as a single economic entity under contractual arrangements while retaining their separate legal identities;
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the Ownership Interests in the Ultimate Parent Entities comprising the agreement are quoted, traded or transferred independently in different capital markets;
and
the Ultimate Parent Entities prepare Consolidated
Financial Statements in which the assets, liabilities, income, expenses and cash flows of all the Entities of the Groups are presented together as those of a single economic unit and that are required by a regulatory regime to be externally audited;
“Multi-Parented Multinational Enterprise Group” means two or more Groups where—
the Ultimate Parent Entities of those Groups enter into an arrangement that is a Stapled Structure or a Dual-listed Arrangement; and
at least one Entity or Permanent Establishment of the combined Group is located in a different jurisdiction with respect to the location of the other Entities of the combined Group;
“Stapled Structure” means an arrangement entered into by two or more Ultimate Parent Entities of separate Groups, under which—
fifty per cent or more of the Ownership Interests in the Ultimate Parent Entities of the separate Groups are by reason of form of ownership, restrictions on transfer, or other terms or conditions combined with each other, and cannot be transferred or traded independently and if the combined Ownership Interests are listed, they are quoted at a single price; and
one of those Ultimate Parent Entities prepares
Consolidated Financial Statements in which the assets, liabilities, income, expenses and cash flows of all the Entities of the Groups are presented together as those of a single economic unit and that are required by a regulatory regime to be externally audited.
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