MTT11030 - Scope: Revenue threshold test: Domestic Top-up Tax

The revenue threshold test will apply differently for DTT purposes for single entities.

The test will apply for DTT purposes in the same way for groups. See MTT11010 for the main guidance on the revenue threshold test.

See MTT10020 for further guidance on the scope of Domestic Top-up Tax.

Revenue threshold test for single entities

A single entity that is located in the UK will meet the revenue threshold test if it exceeds the €750m threshold in two of the four periods prior to the tested period. The revenue will be taken from the qualifying financial statements of the entity.

The special rules where there has been a merger or demerger will not apply.

Qualifying financial statements

To be qualifying, financial statements must be prepared in accordance with acceptable financial standards.

If no such statements are prepared, the qualifying financial statements are those that would have been prepared in accordance with an authorised accounting standard that is either:

  • an acceptable accounting standard, or
  • a financial accounting standard with adjustments made to prevent material competitive distortions (as defined in subsection 249(4)).

Excluded entities

The revenue of entities that are excluded for DTT purposes (including entities that are only excluded for DTT purposes) are to be included when determining whether the group has met the revenue threshold for a period.

Generally, excluded entities are treated as not being a member of any group for DTT purposes.

See MTT10030 for guidance on excluded entities under DTT.