Taxes Consolidation Act 1997 section 111M

Application of UTPR in jurisdiction of ultimate parent entity

Section 111M sets out the circumstances in which Irish-resident members of a multinational group must pay an undertaxed profit rule (UTPR) top-up tax where the group's ultimate parent entity is low-taxed and located outside the EU.

• Where the ultimate parent entity of an MNE group is low-taxed and is not located in an EU Member State, any constituent entity of that group located in Ireland is liable to a UTPR top-up tax, calculated in accordance with section 111N.
• This UTPR top-up tax does not apply where the ultimate parent entity is already subject to a qualified income inclusion rule (IIR) in respect of itself and its low-taxed constituent entities.
• The UTPR top-up tax also does not apply to a constituent entity that is an investment entity.
• The rule is further subject to the provisions of sections 111AZ and 111AAL, which may modify or disapply the charge in certain circumstances.