Taxes Consolidation Act 1997 section 111AG

De minimis exclusion

Section 111AG provides a de minimis exclusion that allows an MNE group or large-scale domestic group to elect for the top-up tax of its constituent entities in a jurisdiction to be zero, where both the average qualifying revenue and average qualifying income fall below specified thresholds.

• The filing constituent entity may elect for the top-up tax to be zero for entities in a jurisdiction (excluding stateless and investment entities) where the average qualifying revenue is below €10,000,000 and the average qualifying income or loss is a loss or below €1,000,000.
• The averages are calculated over the current fiscal year and the two preceding fiscal years; if no constituent entities were present in the jurisdiction in either or both of those preceding years, those years are excluded from the calculation.
• Qualifying revenue is the total revenue of all constituent entities in the jurisdiction used in arriving at their financial accounting net income or loss, adjusted in accordance with Chapter 3; qualifying income or loss is the net qualifying income or loss of the jurisdiction as calculated under section 111AC(3).
• The election must be made annually in accordance with section 111AAAD and applies to all constituent entities located in the same jurisdiction.

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