Global Minimum Tax Act — G-3.3 31
Adjustment top-up amount 31 (1) For the purposes of determining an adjustment top-up amount of an MNE group for a jurisdiction for a fiscal year, if an ETR adjustment provision applies in the fiscal year to adjust, for the purposes of this subsection, the GloBE income or loss or adjusted covered taxes of any standard constituent entity of the MNE group that is located in the jurisdiction, or the jurisdictional adjusted covered taxes of the MNE group for the jurisdiction, for an adjustment year, the following rules apply: (a) the jurisdictional top-up amount of the MNE group for the jurisdiction for the adjustment year (referred to in this subsection as the “recalculated jurisdictional top-up amount”) is calculated taking into account the adjustment; and (b) the amount determined by the following formula is an adjustment top-up amount of the MNE group for the jurisdiction for the fiscal year: (A − B) × C where A is the recalculated jurisdictional top-up amount of the MNE group for the jurisdiction for the adjustment year, B is the jurisdictional top-up amount of the MNE group for the jurisdiction for the adjustment year, determined without reference to paragraph (a), and C is (i) the disposition recapture ratio, if the adjustment is an adjustment to adjusted covered taxes under subsection 37 (5), and (ii) 1, in any other case. Definition of excess negative tax expense top-up amount (2) Subject to subsection (5), the excess negative tax expense top-up amount of a particular negative tax expense constituent entity of an MNE group that is located in a jurisdiction for a fiscal year means the amount determined by the formula A × B ÷ C where A is the jurisdictional excess negative tax expense top-up amount of the MNE group for the jurisdiction for the fiscal year; B is the amount determined by the formula D × E − F where D is the GloBE income or loss of the particular negative tax expense constituent entity for the fiscal year, E is the minimum rate, and F is the adjusted covered taxes of the particular negative tax expense constituent entity for the fiscal year; and C is the total of all amounts each of which is the amount determined for B for a negative tax expense constituent entity of the MNE group for the jurisdiction for the fiscal year. Definition of negative tax expense constituent entity (3) A negative tax expense constituent entity , in respect of an MNE group for a fiscal year, means a standard constituent entity of the MNE group whose adjusted covered taxes for the fiscal year are less than each of the following amounts: (a) nil; and (b) the amount that would, in the absence of section 8 , be determined by the formula A × B where A is the GloBE income or loss of the entity for the fiscal year, and B is the minimum rate. Definition of jurisdictional excess negative tax expense top-up amount (4) The jurisdictional excess negative tax expense top-up amount , of an MNE group for a jurisdiction for a fiscal year in which its net GloBE income for the jurisdiction is nil and its jurisdictional adjusted covered taxes for the jurisdiction is less than nil, means the amount determined by the formula A − B − C where A is the amount that would, in the absence of section 8 , be determined by the formula D × E where D is the total of all amounts each of which is the GloBE income or loss for the fiscal year of a standard constituent entity of the MNE group that is located in the jurisdiction, and E is the minimum rate; B is the jurisdictional adjusted covered taxes of the MNE group for the jurisdiction for the fiscal year; and C is the amount determined by the formula F × (A − B) ÷ (A − B + G) where F is the total amount of tax payable for the 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, and G is the total of all adjustment top-up amounts of the MNE group for the jurisdiction for the fiscal year. Ele