Revenue eBrief No.322/24
17 December 2024
Update to Part 04A-01-01 - Global Minimum Level of Taxation for Multinational Enterprise Groups and Large-Scale Domestic Groups in the Union – Administration and Part 04A-01-02 - Regarding the application of Pillar Two rules
Update to Part 04A-01-01 - Global Minimum Level of Taxation for Multinational Enterprise Groups and Large-Scale Domestic Groups in the Union – Administration and Part 04A-01-02 - Regarding the application of Pillar Two rules.
The following two Tax and Duty Manuals (TDMs) have been updated.
TDM Part 04A-01-01 - Global Minimum Level of Taxation for Multinational Enterprise Groups and Large-Scale Domestic Groups in the Union - Administration which contains an overview of the Administration of Pillar Two. The TDM has been updated to reflect certain amendments, made to Part 4A by Finance Act 2024, which relate to the administration of Pillar Two. The changes are as follows:
• In section 2.8, which clarifies that the specified return date of an entity shall be 30 June 2026 where the specified return date of that entity, or group, would otherwise arise before 30 June 2026,
• In section 3, which clarifies that the notification date of an entity or group shall be 31 December 2025 where a registration notification date of that entity, or group, arises before 31 December 2025,
• In section 13, which clarifies that GloBE taxes fall due and payable on 30 June 2026 where the specified return date would otherwise arise before 30 June 2026,
• In Table 1 (Five year elections) of section 19.1, which provides for the allocation of deferred tax expense election,
• In Table 2 (Annual elections) of section 19.2, which provides for the simplified calculations safe harbour election.
In addition, section 2.3 has been updated to clarify the meaning of a “designated filing entity”.
TDM Part 04A-01-02 - Global Minimum Level of Taxation for Multinational Enterprise Groups and Large-Scale Domestic Groups in the Union – which provides guidance in relation to the operation of the Pillar Two rules has been updated in the following sections:
• Section 5.1 - Updates provided in relation to widely held investment funds, master-feeder investment funds and umbrella fund/sub fund structures.
• Section 5.4 - Updates provided in relation to the interaction of tax residency and location of a constituent entity in certain circumstances.
• Section 7.2 - Updates provided in relation to the interaction of Part 35A TCA 1997 and section 111P(4) TCA 1997. Updates are also provided in relation to refundable and marketable transferable tax credits and intra-group financing arrangements.
• Section 11.1 - Updates provided in relation to identifying the "ownership holder" referred to in section 111AQ(1).
TDM Part 04A-01-02 - Global Minimum Level of Taxation for Multinational Enterprise Groups and Large-Scale Domestic Groups in the Union will be further updated in due course to reflect the amendments made to Part 4A by Finance Act 2024.