§ 5 — Jurisdiction where entity or permanent establishment is located

5.—(1) For the purposes of this Act, an entity (not being a flow‑through entity) is located in a jurisdiction if —(a)

it is a tax resident of that jurisdiction based on its place of management, establishment, formation, incorporation, registration or similar criteria under the laws of that jurisdiction; or

(b)

in a case where it is not a tax resident of any jurisdiction — it is established, formed, incorporated or registered under the laws of that jurisdiction.

(2) For the purposes of this Act, a flow‑through entity that —(a)

is the ultimate parent entity of an MNE group; or

(b)

would be a responsible member of an MNE group as defined in section 13 (other than the ultimate parent entity of that MNE group) if it were located in the jurisdiction under the laws of which it is established, formed, incorporated or registered,

is located in the jurisdiction under the laws of which it is established, formed, incorporated or registered.

(3) For the purposes of this Act, a flow‑through entity to which subsection (2) does not apply is treated as a stateless entity.

(4) For the purposes of this Act, a permanent establishment is located in a jurisdiction if —(a)

in the case of a permanent establishment in section 4(1)(a) — it is treated as a permanent establishment under the law of that jurisdiction and is taxed in accordance with an applicable tax treaty in force;

(b)

in the case of a permanent establishment in section 4(1)(b) — it is subject to net basis taxation under the law of that jurisdiction based on its business presence there; and

(c)

in the case of a permanent establishment in section 4(1)(c) — it is situated in that jurisdiction.

(5) A permanent establishment in section 4(1)(d) is considered a stateless permanent establishment.

—(1) For the purposes of this Act, an entity (not being a flow‑through entity) is located in a jurisdiction if —(a)

it is a tax resident of that jurisdiction based on its place of management, establishment, formation, incorporation, registration or similar criteria under the laws of that jurisdiction; or

(b)

in a case where it is not a tax resident of any jurisdiction — it is established, formed, incorporated or registered under the laws of that jurisdiction.

(2) For the purposes of this Act, a flow‑through entity that —(a)

is the ultimate parent entity of an MNE group; or

(b)

would be a responsible member of an MNE group as defined in section 13 (other than the ultimate parent entity of that MNE group) if it were located in the jurisdiction under the laws of which it is established, formed, incorporated or registered,

is located in the jurisdiction under the laws of which it is established, formed, incorporated or registered.

(3) For the purposes of this Act, a flow‑through entity to which subsection (2) does not apply is treated as a stateless entity.

(4) For the purposes of this Act, a permanent establishment is located in a jurisdiction if —(a)

in the case of a permanent establishment in section 4(1)(a) — it is treated as a permanent establishment under the law of that jurisdiction and is taxed in accordance with an applicable tax treaty in force;

(b)

in the case of a permanent establishment in section 4(1)(b) — it is subject to net basis taxation under the law of that jurisdiction based on its business presence there; and

(c)

in the case of a permanent establishment in section 4(1)(c) — it is situated in that jurisdiction.

(5) A permanent establishment in section 4(1)(d) is considered a stateless permanent establishment.