Taxes Consolidation Act 1997 section 111AAB

Qualifying entities

Section 111AAB defines what constitutes a "qualifying entity" for the purposes of the top-up tax provisions in Part 4A, setting out the three categories of entity that may qualify and the revenue threshold that applies to certain standalone entities.

• A qualifying entity must be located in the State and fall into one of three categories: a constituent entity within scope of Part 4A, a joint venture or joint venture affiliate subject to the income inclusion rule charging provisions, or a standalone entity meeting the revenue threshold test.
• A standalone entity qualifies only if its revenue exceeds the entity revenue threshold in at least two of its four immediately preceding accounting periods, based on its standalone financial statements, and it is not an excluded entity or an investment undertaking.
• The entity revenue threshold is €750 million, pro-rated for accounting periods that are shorter or longer than 365 days by multiplying €750,000,000 by the number of days in the accounting period and dividing by 365.
• Investment entities are specifically excluded from qualifying entity status regardless of which category they might otherwise fall into.