Revenue Note for Guidance

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Revenue Note for Guidance

111C Scope of Part 4A

Summary

This section sets out the scope of this Part.

Details

Application

(1) Subject to subsection (2) of this section, the application of consolidated revenue threshold to group mergers and demergers as set out in section 111AL, and the application of the domestic top-up tax as set out in sections 111AAA and 111AAD, this Part shall apply for a fiscal year to constituent entities, located in the State, that are members of an MNE group or of a large-scale domestic group, where the revenue of the group (including that of any excluded entities) recorded in the group’s consolidated financial statements is no less than €750,000,000 (adjusted proportionally for periods greater or less than 12 months) for at least two of the four fiscal years immediately preceding that fiscal year.

Excluded Entities

(2) Subject to subsection (3), this Part shall not apply to the following entities (in this Part referred to as “excluded entities”):

  • an entity which is-
    1. (2)(a) a governmental entity,
    2. an international organisation,
    3. a non-profit organisation,
    4. a pension fund,
    5. an investment fund that is an ultimate parent entity, and
    6. a real estate investment vehicle that is an ultimate parent entity,
  • (2)(b) an entity, where at least 95% of the value of that entity is owned by an excluded entity directly or through one or more excluded entities, other than a pension services entity, and that, operates exclusively, or almost exclusively, to hold assets or invest funds for the benefit of excluded entities, or exclusively carries out activities ancillary to those performed by excluded entities, and
  • (2)(c) an entity, where at least 85% of the value of that entity is owned by an excluded entity directly or through one or more excluded entities, other than a pension services entity, where substantially all of the income of the entity is derived from dividends or equity gains or losses that are excluded from the calculation of qualifying income or loss to which paragraph (b) or (c) of section 111P(2) applies.

(3) A member of a group that would otherwise be an excluded entity, by virtue of paragraph (b) or (c) of subsection (2), shall not be an excluded entity where a filing constituent entity makes an election, in accordance with section 111AAAD, that the entity is not to be an excluded entity.

(4) Provides that nothing in the Acts shall prevent an entity or permanent establishment from being chargeable to IIR top-up tax, UTPR top-up tax or domestic top-up tax, as the case may be, under this Part.

Relevant Date: Finance Act 2024