Global Minimum Tax Act — G-3.3 33
De minimis jurisdiction exclusion 33 (1) Despite sections 30 and 34 , the top-up amount for a particular fiscal year of each constituent entity (referred to in this section as an “eligible constituent entity”) of an MNE group that is located in a jurisdiction (other than a stateless constituent entity, investment entity or insurance investment entity) is deemed to be the amount that would be the top-up amount of the eligible constituent entity if the top-up percentage that is relevant in calculating that top-up amount were nil, if (a) the filing constituent entity of the MNE group elects in respect of the jurisdiction for the particular fiscal year; (b) the amount determined by the following formula is less than €10 million: (A + B + C) ÷ D where A is the jurisdictional GloBE revenue of the MNE group for the jurisdiction for the particular fiscal year, B is the jurisdictional GloBE revenue of the MNE group for the jurisdiction for the fiscal year (referred to in this subsection as the “first preceding year”) immediately preceding the particular fiscal year, C is the jurisdictional GloBE revenue of the MNE group for the jurisdiction for the fiscal year (referred to in this subsection as the “second preceding year”) immediately preceding the first preceding year, and D is (i) 3, if the jurisdictional GloBE revenue of the MNE group for the jurisdiction is greater than nil — or at least one eligible constituent entity of the MNE group that is located in the jurisdiction has a GloBE loss — for both the first preceding year and the second preceding year, (ii) 2, if the jurisdictional GloBE revenue of the MNE group for the jurisdiction is greater than nil — or at least one eligible constituent entity of the MNE group that is located in the jurisdiction has a GloBE loss — for only one of the first preceding year and the second preceding year, and (iii) 1, in any other case; and (c) the amount determined by the following formula is less than €1 million: (E + F + G) ÷ D where E is the jurisdictional GloBE income or loss of the MNE group for the jurisdiction for the particular fiscal year, F is the jurisdictional GloBE income or loss of the MNE group for the jurisdiction for the first preceding year, and G is the jurisdictional GloBE income or loss of the MNE group for the jurisdiction for the second preceding year. Definition of jurisdictional GloBE revenue (2) The jurisdictional GloBE revenue , of an MNE group for a jurisdiction for a fiscal year, means the total of all amounts determined by the formula A × B ÷ 365 where A is the financial accounting revenue of an eligible constituent entity of the MNE group that is located in the jurisdiction for the fiscal year, subject to any adjustments made in determining the GloBE income or loss of the eligible constituent entity for the fiscal year under Division 2, subsection 25 (6) and paragraphs 27 (1)(b) and 37 (4)(b) and (5)(b), other than any adjustment (a) in respect of expenses, or (b) that is a decrease to the eligible constituent entity’s GloBE income or loss for the fiscal year resulting from the application of an ETR adjustment provision in a subsequent fiscal year; and B is the number of days in the fiscal year. Definition of financial accounting revenue (3) The financial accounting revenue , of an eligible constituent entity of an MNE group for a fiscal year, means the revenue amount for the fiscal year determined for the entity in the manner set out, and in accordance with the principles reflected, in the definition financial accounting income in subsection 17 (1), with such modifications as the context requires. Definition of jurisdictional GloBE income or loss (4) The jurisdictional GloBE income or loss , of an MNE group for a jurisdiction for a fiscal year, means the amount that would, in the absence of section 8 , be determined by the formula A × B ÷ 365 where A is the total of all amounts each of which is the GloBE income or loss for the fiscal year of an eligible constituent