Taxes Consolidation Act 1997 section 111L

Application of UTPR across MNE group

Section 111L imposes an undertaxed profits rule (UTPR) top-up tax on Irish-resident members of a multinational group where the group's ultimate parent entity is not subject to a qualified income inclusion rule.

• Where the ultimate parent entity of an MNE group is located in a jurisdiction that does not apply a qualified income inclusion rule (IIR), or the ultimate parent entity is an excluded entity (such as a governmental or non-profit organisation), Irish-resident constituent entities of that group become liable for UTPR top-up tax.
• The UTPR top-up tax is calculated in accordance with the rules set out in section 111N.
• The application of this section is subject to the UTPR group rules in section 111AAL.
• Investment entities are exempt — the UTPR top-up tax does not apply to a constituent entity that is an investment entity.