Global Minimum Tax Act — G-3.3 30
Definition of top-up amount 30 (1) The top-up amount , of a particular standard constituent entity of an MNE group that is located in a jurisdiction for a fiscal year, means (a) if the net GloBE income of the MNE group for the jurisdiction for the fiscal year is greater than nil, the amount determined by the formula A × B ÷ C where A is the jurisdictional top-up amount of the MNE group for the jurisdiction for the fiscal year, B is the GloBE income of the particular standard constituent entity for the fiscal year, and C is the total of all amounts each of which is the GloBE income, of a standard constituent entity of the MNE group that is located in the jurisdiction, for the fiscal year; and (b) if the net GloBE income of the MNE group for the jurisdiction for the fiscal year is nil, the total of (i) the allocated adjustment top-up amount of the particular standard constituent entity for the fiscal year, and (ii) where the jurisdictional adjusted covered taxes of the MNE group for the jurisdiction for the fiscal year is less than nil, the excess negative tax expense top-up amount of the particular standard constituent entity for the fiscal year. Definition of jurisdictional top-up amount (2) The jurisdictional top-up amount , of an MNE group for a jurisdiction for a fiscal year, means the amount determined by the formula A × B + C − D where A is the top-up percentage of the MNE group for the jurisdiction for the fiscal year; B is the excess profit of the MNE group for the jurisdiction for the fiscal year; C is the total of all amounts each of which is an adjustment top-up amount of the MNE group for the jurisdiction for the fiscal year; and D is the total amount of tax payable for a fiscal year, in respect of the standard constituent entities of the MNE group that are located in the jurisdiction, under a qualified domestic minimum top-up tax of the jurisdiction. Definition of top-up percentage (3) The top-up percentage , of an MNE group for a jurisdiction for a fiscal year, means the percentage point difference determined by the formula A − B where A is the minimum rate; and B is the effective tax rate of the MNE group for the jurisdiction for the fiscal year. Definition of excess profit (4) The excess profit , of an MNE group for a jurisdiction for a fiscal year, means the amount determined by the formula A − B where A is the net GloBE income of the MNE group for the jurisdiction for the fiscal year; and B is the substance-based income exclusion amount of the MNE group for the jurisdiction for the fiscal year. Definition of allocated adjustment top-up amount (5) The allocated adjustment top-up amount of a particular standard constituent entity of an MNE group that is located in a jurisdiction for a particular fiscal year means the total of all amounts each of which is determined by the formula (A − B) × C ÷ D where A is a particular adjustment top-up amount of the MNE group for the jurisdiction for the particular fiscal year; B is the amount determined by the formula E × A ÷ (F + G) where E is the total amount of tax payable for the particular fiscal year, in respect of the standard constituent entities of the MNE group that are located in the jurisdiction, under a qualified domestic minimum top-up tax of the jurisdiction, F is the total of all adjustment top-up amounts of the MNE group for the jurisdiction for the particular fiscal year, and G is the jurisdictional excess negative tax expense top-up amount of the MNE group for the jurisdiction for the particular fiscal year, if the formula in that definition in subsection 31 (4) were read without reference to C; C is the GloBE income of the particular standard constituent entity, for the adjustment year to which the particular adjustment top-up amount relates, as adjusted because of the application of any ETR adjustment provision in the particular fiscal year or any preceding fiscal year; and D is the total of all amounts each of which is the GloBE income, for the adjustment