Subject to section 111AAL, where the ultimate parent entity of an MNE group is located in a Member State that has made an election pursuant to Article 50.1 of the Directive, a constituent entity of that MNE group that is located in the State shall be subject to a UTPR top-up tax for fiscal years beginning on or after 31 December 2023, calculated in accordance with section 111N.

The ultimate parent entity must nominate a designated filing entity in a Member State other than the Member State in which the ultimate parent entity is located or, if the MNE group has no constituent entity in another Member State, in a third country jurisdiction that has, for the reporting fiscal year, a qualifying competent authority agreement in effect with the Member State in which the ultimate parent entity is located. Where the designated filing entity is located in the State it shall file a top-up tax information return under section 111AAI and constituent entities located in the electing Member State must provide the designated filing entity with information necessary to comply with section 111AAI(3).