Part 3Multinational top-up tax
Chapter 10Definitions etc
Miscellaneous
253Disqualified and qualified refundable imputation taxes
1
An amount of tax payable by a member of a multinational group is “disqualified refundable imputation tax” if—
a
it is—
i
in respect of a dividend made by the member and is refundable to the beneficial owner of the dividend,
ii
creditable by the beneficial owner of such a dividend against a tax liability other than a tax liability in respect of that dividend, or
iii
refundable to an entity upon the distribution of a dividend, and
b
it is not qualified refundable imputation tax.
2
An amount of tax payable by a member of a multinational group is “qualified refundable imputation tax” to the extent—
a
it is refundable or creditable to the beneficial owner of a dividend distributed by—
i
the member, or
ii
where the member is a permanent establishment, the main entity, and
b
the refund is payable, or the credit is provided—
i
under a foreign tax credit regime by a territory other than the territory that imposed the tax on the member,
ii
to a beneficial owner of the dividend subject to tax in the territory imposing the tax payable by the member, provided the nominal rate of that tax that is at least 15%,
iii
to a beneficial owner of the dividend who is an individual who is tax resident in that territory and who is subject to tax on the dividends as ordinary income,
iv
to a governmental entity or an international organisation,
v
to a resident non-profit organisation, a resident pension fund or a resident investment entity that is not a member of a multinational group, or
vi
to a resident life insurance company to the extent the dividends are received in connection with a pension fund business and subject to tax in a similar manner as a dividend received by a pension fund.
3
For the purposes of sub-paragraphs (v) and (vi) of subsection (2)(b), an entity is a resident entity if it is resident in the territory that imposed the tax, and for those purposes—
a
a non-profit organisation or pension fund is resident in a territory if it is created and managed in that territory;
b
an investment entity is resident in a territory if it is created and regulated in that territory;
c
a life insurance company is resident in a territory if it is located there (see section 239).