Akta Kewangan (No. 2) 2023 · Updated to 29 Dec 2023 · Chapter 9
189. Ultimate Parent Entity that is a Flow-through Entity
Feedback & supportThe GloBE Income for a Financial Year of a
Flow-through Entity that is the Ultimate Parent Entity of a Multinational Enterprise Group shall be reduced by the amount of GloBE Income attributable to each Ownership
Interest if—
the holder of the Ownership Interest is subject to tax on such income for a taxable period that ends within twelve months of the end of the
Financial Year of the Multinational Enterprise
Group and—
the holder of the Ownership Interest is subject to tax on the full amount of such income at a nominal rate that equals or exceeds the
Minimum Rate; or
it can be reasonably expected that the aggregate amount of Covered Taxes paid by the Ultimate Parent Entity and other
Entities that are part of the Tax Transparent
Structure and Taxes of the holder of the
Ownership Interest on such income equals or exceeds the amount that results from multiplying the full amount of such income by the Minimum Rate; or
the holder is a natural person that—
is a tax resident in the Ultimate Parent Entity
Jurisdiction; and
holds Ownership Interests that, in the aggregate, are a right to five per cent or less of the profits and assets of the Ultimate Parent
Entity; or
Kewangan (No. 2)
the holder is a Governmental Entity, an International
Organisation, a Non-profit Organisation, or a Pension
Fund that—
is resident in the Ultimate Parent Entity
Jurisdiction; and
holds Ownership Interests that, in the aggregate, are a right to five per cent or less of the profits and assets of the Ultimate
Parent Entity.
In computing its GloBE Loss for a Financial Year, a Flow-through Entity that is the Ultimate Parent Entity of a Multinational Enterprise Group shall reduce its
GloBE Loss for such Financial Year by the amount of
GloBE Loss attributable to each Ownership Interest, except to the extent that the holders of Ownership Interests are not allowed to use the loss in computing their separate taxable income.
A Flow-through Entity that reduces its GloBE Income pursuant to subsection (1) shall reduce its Covered Taxes proportionally.
Subsections (1) to (3) shall apply to a Permanent
Establishment through which—
a Flow-through Entity that is the Ultimate Parent
Entity of a Multinational Enterprise Group wholly or partly carries out its business; or
the business of a Tax Transparent Entity is wholly or partly carried out if the Ultimate Parent Entity’s
Ownership Interest in that Tax Transparent Entity is held directly or through a Tax Transparent
Structure.
Undang-Undang Malaysia 120
Ultimate Parent Entity subject to Deductible Dividend