Global Minimum Tax Act — G-3.3 19
ula B ÷ 2 × C ÷ A where C is the constituent entity’s ancillary international shipping income for the fiscal year. Definition of ancillary international shipping income (8) Ancillary international shipping income , of a constituent entity for a fiscal year, means the amount determined by the formula A − B where A is the constituent entity’s ancillary international shipping revenue for the fiscal year; and B is the constituent entity’s ancillary international shipping costs for the fiscal year. Definition of ancillary international shipping revenue (9) Ancillary international shipping revenue , of a constituent entity for a fiscal year, means the constituent entity’s revenue for the fiscal year obtained in consideration for the entity’s performance of ancillary international shipping activities. Definition of ancillary international shipping costs (10) Ancillary international shipping costs , of a constituent entity for a fiscal year, means the amount determined by the formula A + (B × C ÷ D) where A is the total costs incurred by the constituent entity for the fiscal year that are directly attributable to the entity’s performance of ancillary international shipping activities; B is the total costs incurred by the constituent entity for the fiscal year that are indirectly attributable to the entity’s performance of ancillary international shipping activities; C is the constituent entity’s ancillary international shipping revenue for the fiscal year; and D is the constituent entity’s total revenue for the fiscal year from all sources. Definition of ancillary international shipping activity (11) Ancillary international shipping activity means an activity, if (a) the strategic or commercial management of the performance of that activity by the constituent entity is effectively carried on within the jurisdiction in which the constituent entity is located; (b) the activity is performed primarily in connection with international shipping; and (c) the activity is any of the following: (i) leasing a ship on a bareboat charter basis to another shipping enterprise, other than another constituent entity of the MNE group, if (A) the lease has not been in effect for a period exceeding three years, and (B) it is established by subsequent events or otherwise that the lease is not part of a series of leases, or of leases and other transactions, that results in the leases being in effect for an aggregate period exceeding three years, (ii) selling tickets for the transportation of passengers or cargo by ship between ports in a single jurisdiction, if (A) the transportation is carried out by a shipping enterprise other than the constituent entity or another constituent entity of the MNE group, and (B) the ship proceeds to, or has come from, a port in a different jurisdiction, (iii) leasing and short-term storage of a container, or detention charges for the late return of a container, (iv) the provision of services by engineers, maintenance staff, cargo handlers, catering staff or customer services personnel to another shipping enterprise, other than another constituent entity of the MNE group, engaged in international shipping, (v) holding assets necessary for the constituent entity to carry on the business of international shipping.