Finance (No. 2) Act 2023

189Deemed distribution tax electionU.K.

(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 Parteligible 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.