111AZ Delayed application of the IIR and UTPR by Member States

Summary

This section provides that a constituent entity of an MNE group located in the State whose ultimate parent entity is located in a Member State that has elected to defer implementation of a qualified IIR in that Member State shall be subject to UTPR top-up tax.

Details

(1) Where the ultimate parent entity of an MNE group is located in a Member State that has made an election pursuant to Article 50.1 of the Directive (to defer implementation of a qualified IIR in that Member State), subject to section 111AAL (in relation to a UTPR group), a constituent entity of that MNE group located in the State shall be subject to UTPR top-up tax for the fiscal years beginning on or after 31 December 2023 in accordance with section 111N.

(2)(a) The ultimate parent entity referred to in subsection (1) shall nominate a designated filing entity in a Member State other than the Member State in which the ultimate parent entity is located or, if the MNE group has no constituent entity in another Member State, in a jurisdiction that has, for the reporting fiscal year, a qualifying competent authority agreement in effect with the Member State in which the ultimate parent entity is located.

(2)(b) The designated filing entity shall file a top-up tax information return in accordance with the requirements set out in section 111AAI and the constituent entities located in the Member State that has made an election pursuant to Article 50.1 of the Directive shall provide the designated filing entity with information necessary to comply with section 111AAI(3).

Relevant Date: Finance Act 2024