Global Minimum Tax Act, 2024 (Act No. 46 of 2024)

Part I : Interpretation

1. Definitions
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In this Act, unless the context indicates otherwise, any word or expression which is assigned a meaning in the GloBE Model Rules or the Global Minimum Tax Administration Act has the meaning so assigned, and the following terms have the following meaning:

 

‘‘Administrative Guidance to the GloBE Model Rules’’

means administrative guidance on the GloBE Model Rules released by the Inclusive Framework being:

(a) OECD (2023), Tax Challenges Arising from the Digitalisation of the Economy Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), February 2023, OECD/G20 Inclusive Framework on BEPS, OECD, Paris;
(b)OECD (2023), Tax Challenges Arising from the Digitalisation of the Economy Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), July 2023, OECD/G20 Inclusive Framework on BEPS, OECD, Paris;
(c) OECD (2023), Tax Challenges Arising from the Digitalisation of the Economy Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), December 2023, OECD/G20 Inclusive Framework on BEPS, OECD, Paris; and
(d) any similar document subsequently released by the Inclusive Framework, as specified under section 23;

 

‘‘Commentary to the GloBE Model Rules’’ or ‘‘GloBE Commentary’’

means the commentary released in the document titled OECD (2022), Tax Challenges Arising from the Digitalisation of the Economy Commentary to the Global Anti-Base Erosion Model Rules (Pillar Two), OECD, Paris and any update to that commentary released by the Inclusive Framework, as specified under section 23;

 

‘‘Domestic Constituent Entity’’

means a Constituent Entity, within the meaning of the GloBE Model Rules that is located in the Republic;

 

‘‘Domestic Joint Venture’’

means a Joint Venture, within the meaning of the GloBE Model Rules that is located in the Republic;

 

‘‘Domestic Joint Venture Group’’

means a Domestic Joint Venture and its Domestic Joint Venture Subsidiaries that are located in the Republic;

 

‘‘Domestic Joint Venture Subsidiary’’

means a Joint Venture Subsidiary, within the meaning of the GloBE Model Rules that is located in the Republic;

 

‘‘Global Anti-Base Erosion Model Rules’’ or ‘‘GloBE Model Rules’’

means the set of rules as developed by the Inclusive Framework, applied in accordance with Part II of this Act, and—

(a) set out in the document titled Tax Challenges Arising from the Digitalisation of the Economy Global Anti-Base Erosion Model Rules (Pillar Two): Inclusive Framework on BEPS, which is a document—
(i) approved by the Inclusive Framework on 14 December 2021; and
(ii) published by the OECD; and
(b) as amended from time to time, except any amendments to the definition of minimum rate in Article 10.1.1 of the GloBE Model Rules referred to in paragraph (a), as specified under section 23;

 

‘‘Global Minimum Tax Administration Act’’

means the Global Minimum Tax Administration Act, 2024;

 

‘‘Inclusive Framework’’

means the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS);

 

‘‘location of an Entity’’

for the purposes of this Act, means the location of an Entity determined in accordance with Article 10.3 of the GloBE Model Rules;

 

‘‘Minister’’

means the Minister of Finance;

 

‘‘multinational enterprise group’’ or ‘‘MNE Group’’

means any group that includes at least one Entity or Permanent Establishment that is not located in the jurisdiction of the Ultimate Parent Entity as referred to in Article 1.2 of the GloBE Model Rules and is within scope of Article 1.1 of the GloBE Model Rules;

 

‘‘Republic’’

means the Republic of South Africa and, when used in a geographical sense, includes the territorial sea thereof as well as any area outside the territorial sea which has been or may be designated, under international law and the laws of South Africa, as areas within which South Africa may exercise sovereign rights or jurisdiction with regard to the exploration or exploitation of natural resources;

 

‘‘Safe Harbour’’

means an exception provided in Article 8.2.1 of the GloBE Model Rules whose design and eligibility conditions have been approved by the Inclusive Framework and set out in—

(a) OECD (2022), Safe Harbours and Penalty Relief: Global Anti-Base Erosion Rules (Pillar Two), OECD/G20 Inclusive Framework on BEPS, OECD, Paris;
(b) Administrative Guidance to the GloBE Model Rules; and
(c) any similar document subsequently released by the Inclusive Framework as specified under section 23; and

 

‘‘Top-up Tax’’

means Top-up Tax payable under Parts III and IV.