Global Minimum Tax Act — G-3.3 53
Definitions — initial phase of international activity 53 (1) The following definitions apply in this section. initial phase of international activity year , of an MNE group, means a fiscal year (a) throughout which there are constituent entities of the MNE group that are located in no more than six different jurisdictions; and (b) for which the total of all amounts, each of which is the net book value, for the fiscal year, of a tangible asset held by a constituent entity of the MNE group that is located in a jurisdiction other than the reference jurisdiction, does not exceed €50 million. ( année de la phase de démarrage des activités internationales ) net book value , for a fiscal year, of a tangible asset, means the average of the beginning and end values of the tangible asset for the fiscal year after taking into account accumulated depreciation, depletion and impairment, as recorded in the financial statements. ( valeur nette comptable ) reference jurisdiction , of an MNE Group, means the jurisdiction (a) in which a constituent entity of the MNE group is located in the first fiscal year that any constituent entity of, or joint venture entity in respect of, the MNE group is subject to a qualified UTPR or this Part; and (b) for which the sum of the net book values, for that fiscal year, of tangible assets held by the one or more constituent entities that are located in the jurisdiction is greater than the sum of the net book values, for that fiscal year, of tangible assets held by constituent entities of the MNE group that are located in any other single jurisdiction. ( juridiction de référence ) Tangible assets — permanent establishments (2) For the purposes of the definitions initial phase of international activity year and reference jurisdiction in subsection (1), (a) the tangible assets held by a constituent entity that is a permanent establishment are only those that are reflected in the separate financial accounts of the permanent establishment as adjusted in accordance with clause 17 (1)(b)(ii)(B) or subsection 17 (2) (referred to in this subsection as “permanent establishment assets”); and (b) the tangible assets held by a constituent entity that is a main entity in respect of one or more permanent establishments are not to include any permanent establishment assets of those permanent establishments. Initial phase of international activity — exclusion (3) The domestic top-up amount of a constituent entity of an MNE group that is located in Canada for a fiscal year is deemed to be nil if (a) there is no relevant parent entity that is located in a jurisdiction (other than Canada) where it is subject to tax under a qualified IIR and that holds an ownership interest in any constituent entity of the MNE group that is located in Canada; (b) the fiscal year (i) begins on or before the day that is five years after the first day of the first fiscal year that a constituent entity of, or joint venture entity in respect of, the MNE group is subject to a qualified UTPR, and (ii) is an initial phase of international activity year; and (c) all fiscal years preceding the fiscal year are initial phase of international activity years.