Taxes Consolidation Act 1997 section 111C

Scope of Part 4A

Section 111C sets out the scope of Part 4A, identifying which entities located in Ireland are subject to the global minimum tax rules and which entities are excluded from those rules.

• Part 4A applies to Irish-located constituent entities (and qualifying entities subject to domestic top-up tax) of multinational enterprise (MNE) groups or large-scale domestic groups whose consolidated group revenue is at least €750 million in at least two of the four fiscal years immediately preceding the relevant fiscal year.
• Certain categories of entity are excluded, including governmental entities, international organisations, non-profit organisations, pension funds, and investment funds or real estate investment vehicles that are ultimate parent entities.
• Entities that are at least 95% owned by excluded entities (and operate to hold assets or invest funds for their benefit, or carry out ancillary activities) are also excluded, as are entities at least 85% owned by excluded entities where substantially all their income comes from excluded dividends or equity gains and losses.
• An entity that would otherwise qualify as excluded under the 95% or 85% ownership tests can be brought back within scope if a filing constituent entity elects that it should not be treated as an excluded entity. Such an election has effect for a period of five years.
• The exclusions under the 95% and 85% ownership tests apply where an entity that is a member of a group is held by an excluded entity that is not itself a member of that group. An entity that is a member of a group held by an investment fund or a real estate investment vehicle can still meet the exclusion requirements even where that investment fund or real estate investment vehicle is not the ultimate parent entity of that group.

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