Global Minimum Tax Act — G-3.3 32
 deemed to be done in the jurisdiction for the fiscal year. Eligible payroll costs — flow-through entity allocation (5) If a particular amount would, in the absence of this subsection, be included in the eligible payroll costs of a constituent entity that is a flow-through entity for a fiscal year, the following rules apply: (a) if the constituent entity is an ultimate parent entity, the portion of the particular amount that is determined by the following formula is excluded from the eligible payroll costs of the constituent entity for the fiscal year: A × B ÷ C where A is the particular amount, B is the amount of any reduction to the GloBE income of the constituent entity for the fiscal year under subsection 20 (1), and C is the GloBE income of the constituent entity for the fiscal year before the reduction referred to in the description of B; and (b) in any other case, (i) the eligible payroll costs of the constituent entity for the fiscal year are deemed to be nil, and (ii) if all or any portion of the net income or loss of the constituent entity is allocated to one or more of its constituent entity-owners (each referred to in this subparagraph as a “relevant owner”) under paragraphs 17 (6)(b) and (c) for the fiscal year, (A) the particular amount is allocated to each relevant owner in the same proportion as the financial accounting income is allocated to that relevant owner, and (B) if a relevant owner is located in the same jurisdiction as the constituent entity, any portion of the particular amount that is allocated to the relevant owner under clause (A) is included in the eligible payroll costs of the relevant owner for the fiscal year. Eligible payroll costs — deductible dividend regime (6) If a particular amount would, in the absence of this subsection, be included in the eligible payroll costs, for a fiscal year, of a constituent entity that is subject to a deductible dividend regime, the portion of the particular amount determined by the following formula is excluded from the eligible payroll costs of the constituent entity for the fiscal year: A × B ÷ C where A is the particular amount; B is the total amount of any reductions to the GloBE income of the constituent entity for the fiscal year under subsections 21 (1) to (3); and C is the GloBE income of the constituent entity for the fiscal year before the reductions referred to in the description of B. Eligible payroll costs — taxable distribution method (7) If a particular amount would, in the absence of this subsection, be included in the eligible payroll costs, for a fiscal year, of a constituent entity an ownership interest in which is subject to an election under subsection 42 (2), the portion of the particular amount determined by the following formula is excluded from the eligible payroll costs of the constituent entity for the fiscal year: A × B ÷ C where A is the particular amount; B is the portion of the GloBE income of the constituent entity for the fiscal year that is attributable to ownership interests of the constituent entity in respect of which an election under subsection 42 (2) applies for the fiscal year; and C is the GloBE income of the constituent entity for the fiscal year. Definition of eligible employee (8) An eligible employee , of a standard constituent entity of an MNE group, means an individual who is (a) regarded as an employee (or, if a distinction is made, a part-time employee) of the standard constituent entity under the laws of the jurisdiction in which it is located; or (b) an independent contractor who acts under the direction and control of one or more standard constituent entities of the MNE group. Definition of eligible tangible asset amount (9) Subject to subsections (10) to (13) and subparagraph 38 (1)(d)(ii), the eligible tangible asset amount of a standard constituent entity for a fiscal year means the amount determined by the formula (A + B) ÷ 2 where A is the total of all amounts each of which is the carrying value of an e