111C. Scope of Part 4A

(1) Subject to subsection (2) and section 111AL, 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 following condition (in this Part referred to as ‘the consolidated revenue test’) is satisfied, namely, the revenue of the group (including that of any excluded entities within the meaning of subsection (2)) recorded in the group’s consolidated financial statements is no less than the consolidated revenue threshold for at least 2 of the 4 fiscal years immediately preceding that fiscal year.

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

(a) an entity which is—

(i) a governmental entity,

(ii) an international organisation,

(iii) a non-profit organisation,

(iv) a pension fund,

(v) an investment fund that is an ultimate parent entity, or

(vi) a real estate investment vehicle that is an ultimate parent entity;

(b) an entity where at least 95 per cent of the value of that entity is owned by one or more entities referred to in paragraph (a), directly or through one or more excluded entities, other than a pension services entity, that—

(i) operates exclusively, or almost exclusively, to hold assets or invest funds for the benefit of the entities referred to in paragraph (a), or

(ii) exclusively carries out activities ancillary to those performed by the entities referred to in paragraph (a);

(c) an entity where at least 85 per cent of the value of that entity is owned, directly or through one or more excluded entities, by one or more entities referred to in paragraph (a) other than a pension services entity, provided that 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) 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.