Part 3Multinational top-up tax

Chapter 5Covered tax balance

Eligible distribution tax systems: deemed taxes

189Deemed distribution tax election

1

The filing member of a multinational group may make an election that section 190 (deemed distribution tax) applies to all of the standard members of the group in a particular territory for an accounting period.

2

An election under subsection (1) may only be made in relation to a territory if that territory has an eligible distribution tax system.

3

In this Part “eligible distribution tax system” means a system of tax on company profits that—

a

is generally only payable when a company distributes, or is deemed to distribute, those profits to its members, or when it incurs certain non-business expenses,

b

is charged at a rate of at least 15%, and

c

was in force on or before 1 July 2021.

4

Paragraph 2 of Schedule 15 (annual elections) applies to an election under this section.