Global Minimum Tax Act — G-3.3 32
ease, (ii) a tangible asset used in the generation of core international shipping income in the fiscal year that includes the particular time, (iii) if the constituent entity is a permanent establishment, an asset to the extent it can reasonably be considered to be used in the generation of income that is excluded from the GloBE income or loss of the constituent entity under paragraph 17 (6)(a) or subsection 20 (4), or (iv) a right-of-use asset in respect of the lease of a tangible asset that is regularly leased several times to different lessees during the fiscal year, if the average lease period, including any renewals and extensions, with respect to lessees of the asset is 30 days or less (referred to in this subsection and subsection (15) as a “short-term rental asset”). Eligible tangible asset — carrying value (15) For the purposes of subsection (9), the carrying value of an eligible tangible asset of a constituent entity of an MNE group at a particular time is the carrying value of the eligible tangible asset recorded, or calculated as it would have been if it were recorded, at the particular time for the purposes of preparing the consolidated financial statements of the ultimate parent entity of the MNE group, as reduced (to the extent it has not already been so reduced) by the amount (a) of any positive difference between the carrying value so determined and the carrying value of the same eligible tangible asset at the time it was most recently acquired by the constituent entity, to the extent such difference is solely attributable to one or more revaluations of the asset; (b) of any accumulated depreciation, amortization, depletion or impairment loss in respect of the asset; (c) of the reversal of any impairment loss to the extent that the reversal exceeds the impairment loss; (d) recorded by another constituent entity of the MNE group in its financial accounts as a right-of-use asset in respect of the eligible tangible asset (other than a short-term rental asset); (e) of undiscounted value of any payments remaining due, in respect of the eligible tangible asset (other than a short-term rental asset), from a lessee of the eligible tangible asset that is not a constituent entity of the MNE group; (f) if the eligible tangible asset is used in the generation of qualified ancillary international shipping income of the constituent entity for the fiscal year that includes the particular time, determined by the formula A × B ÷ C where A is the carrying value of the eligible tangible asset, determined without reference to this paragraph and paragraph (g), B is the qualified ancillary international shipping income of the constituent entity for the fiscal year, and C is the ancillary international shipping income of the constituent entity for the fiscal year; and (g) determined, for the fiscal year that includes the particular time, by the formula D × E ÷ F where D is the carrying value of the eligible tangible asset, determined without reference to this paragraph, E is (i) nil, if the eligible tangible asset — or the underlying leased tangible asset, where the condition in subparagraph (14)(c)(iii) is satisfied, or the underlying immovable property or natural resources, where the condition in subparagraph (14)(c)(v) is satisfied — is located in the jurisdiction in which the constituent entity is located for more than 50% of the days in the fiscal year (referred to in this paragraph as the “qualifying days”) that paragraphs (14)(a) and, if the constituent entity is a permanent establishment, (14)(b) are satisfied in respect of the eligible tangible asset, and (ii) the number of qualifying days in which the eligible tangible asset is not located in the jurisdiction in which the constituent entity is located, in any other case, and F is the number of qualifying days. Election not to apply exclusion for a jurisdiction (16) The substance-based income exclusion amount of an MNE group for a jurisdiction for a fiscal year is deemed to