Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p83
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 208121–210687

means the Adjusted Covered Taxes of the Constituent Entity for the current Fiscal Year.
GloBE Income or Loss means the GloBE Income or Loss of the Constituent Entity for the current Fiscal Year.
 (4) For the purposes of Chapter 2, if a Constituent Entity is allocated an amount of Additional Current Top‑up Tax for a Fiscal Year under subsection (3), treat the Constituent Entity as a Low‑Taxed Constituent Entity for the Fiscal Year.

Part 5‑5—De minimis exclusion

5‑105  De minimis exclusion
 (1) The Top‑up Tax of a Constituent Entity of an MNE Group located in a jurisdiction is taken to be zero for a Fiscal Year if:
 (a) the Average GloBE Revenue of the MNE Group for the jurisdiction for the Fiscal Year is less than 10 million Euros; and
 (b) the Average GloBE Income or Loss of the MNE Group for the jurisdiction for the Fiscal Year is a loss or is less than 1 million Euros; and
 (c) an election for the MNE Group under subsection (2) applies to the jurisdiction and the Fiscal Year; and
 (d) the Constituent Entity is not a Stateless Constituent Entity, an Investment Entity or an Insurance Investment Entity.

Election
 (2) A Filing Constituent Entity for the MNE Group may make an election for the MNE Group under this subsection that applies to a specified jurisdiction.
 (3) An election under subsection (2) is an Annual Election.

5‑110  Meaning of Average GloBE Revenue etc.
 (1) For the purposes of this instrument:
 (a) the Average GloBE Revenue of an MNE Group for a jurisdiction for a Fiscal Year is the average of the GloBE Revenue of the MNE Group (see subsection (3)) for the jurisdiction for the Fiscal Year and the 2 preceding Fiscal Years; and
 (b) the Average GloBE Income or Loss of an MNE Group for a jurisdiction for a Fiscal Year is the average of the GloBE Income or Loss of the MNE Group (see subsection (3)) for the jurisdiction for the Fiscal Year and the 2 preceding Fiscal Years.
 (2) However, if, in a preceding Fiscal Year mentioned in subsection (1), there were no Constituent Entities of the MNE Group located in the jurisdiction with revenue or GloBE Losses, exclude that Fiscal Year from the computation of the Average GloBE Revenue and the Average GloBE Income or Loss of the MNE Group for the jurisdiction for the Fiscal Year.
 (3) For the purposes of subsections (1) and (2):
 (a) the GloBE Revenue of an MNE Group for a jurisdiction for a Fiscal Year is the sum of the revenue for the Fiscal Year of all Constituent Entities of the MNE Group located in the jurisdiction, taking into account the adjustments computed