111AX Transitional relief for substance-based income exclusion

Summary

This section provides the relevant percentages for the purpose of applying the payroll and tangible asset carve-out for substance-based income exclusion for fiscal years that begin in the transition period of ten calendar years beginning with 2023. This transition period applies regardless of when a MNE Group comes within the scope of the GloBE Rules.

Details

Payroll carve-out

(1) Provides the relevant percentages for the purpose of applying the payroll carve-out for the substance-based income exclusion under section 111AE(3). The value of 5% shall be replaced, for each fiscal year beginning in the calendar years in column (1) of the table, with the values set out in column (2) the following table:

Tangible asset carve-out

(2) Provides the relevant percentages for the purpose of applying the tangible asset carve-out for the substance-based income exclusion under section 111AE(4). The value of 5% shall be replaced, for each fiscal year beginning in the calendar years in column (1) of the table, with the values set out in column (2) the following table:

Relevant Date: Finance Act 2024