Global Minimum Tax Act — G-3.3 18
ransfer, and (iv) if all or a portion of the tax credit expires without use, the face value attributable to the expired portion of the tax credit is treated as a loss or increase to the carrying value of the asset, as the case may be, in the fiscal year of the expiration; and (b) if the constituent entity is an unrelated purchaser of a marketable transferable tax credit, the following rules apply: (i) if all or a portion of the tax credit is used by the unrelated purchaser to satisfy its liability for a covered tax, the amount by which the face value of the tax credit exceeds the purchase price is treated as income in the fiscal year in which, and in the proportion to which, the amount of the tax credit is used by the unrelated purchaser to satisfy its liability for a covered tax, (ii) if the tax credit is transferred by the unrelated purchaser to another unrelated purchaser, the total of the sale price and any amount of the credit that has been used, minus the total of the purchase price and any gain recognized from use of the tax credit under subparagraph (i), is treated as income or loss, as the case may be, of the unrelated purchaser in the fiscal year of the transfer, and (iii) if the tax credit expires without use, the amount by which the total of the purchase price and any gain recognized from use of the tax credit under subparagraph (i) exceeds the amount of the tax credit used is treated as a loss in the fiscal year of the expiration. Other tax credits (17) In computing the GloBE income or loss of a constituent entity for a fiscal year, the face value of a tax credit (other than a qualified refundable tax credit or a marketable transferable tax credit) is not treated as income. Anti-avoidance — intragroup financing arrangements (18) GloBE income or loss of a constituent entity that is a low-tax entity for a fiscal year excludes any expense that is attributable to an intragroup financing arrangement that can reasonably be expected, over the duration of the arrangement, (a) to increase the amount of expenses taken into account in computing the GloBE income or loss of the low-tax entity; and (b) not to result in a corresponding increase in the income for tax purposes of a high-tax counterparty for the fiscal year, including because an amount received or receivable in respect of the arrangement by the high-tax counterparty can reasonably be considered to be eligible for an exclusion, exemption, deduction, credit or other tax benefit under local law where the amount of that benefit is calculated by reference to the amount of payment received. Insurance companies (19) If a constituent entity is an insurance company, the constituent entity’s GloBE income or loss for a fiscal year (a) excludes any amount that is (i) included in the constituent entity’s financial accounting income for the fiscal year, and (ii) in respect of a charge to policyholders for taxes paid by the constituent entity in respect of returns to the policyholders, to the extent an amount is included in computing the constituent entity’s GloBE income or loss under paragraph (1)(e); and (b) includes returns to policyholders that are not reflected in the constituent entity’s financial accounting income for the fiscal year, to the extent that a corresponding increase or decrease in liability to policyholders is reflected in its financial accounting income. Qualifying tier one capital (20) In computing the GloBE income or loss of a constituent entity for a fiscal year, (a) if an amount is recognized as a decrease to the equity of the constituent entity attributable to a distribution paid or payable in respect of qualifying tier one capital issued by the constituent entity, the amount is treated as an expense; and (b) if an amount is recognized as an increase to the equity of the constituent entity attributable to distributions received or receivable in respect of qualifying tier one capital held by the constituent entity, the amount is treated as income. Stock-ba