Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p128
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 321240–323912

or before 15 December 2022 (including where payments are reduced or ceased with the effect of increasing the balance of a liability); or
 (c) there is a change in the accounting treatment with respect to the arrangement after 15 December 2022.

Division 3—Simplified Calculations Safe Harbour

Subdivision A—Simplified Calculations Safe Harbour

8‑155  Simplified Calculations Safe Harbour—general rule
 (1) Subsection (2) applies if an election for an MNE Group under subsection (3) applies to a Fiscal Year and a jurisdiction.
 (2) The MNE Group's Top‑up Tax Percentage for the jurisdiction for the Fiscal Year is taken to be zero if the MNE Group meets any of the following tests for the jurisdiction for the Fiscal Year:
 (a) the SC De minimis test;
 (b) the SC ETR test;
 (c) the SC Routine profits test.
Note: If the Top‑up Tax Percentage is taken to be zero under this subsection, the MNE Group's Jurisdictional Top‑up Tax for the jurisdiction for the Fiscal Year may still be above zero due to any relevant Additional Current Top‑up Tax under Part 5‑4.

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

Stateless Constituent Entity
 (5) However, subsection (2) does not apply in relation to a jurisdiction if the jurisdiction is a jurisdiction in which a Stateless Constituent Entity is taken to be located under section 5‑45.

Subdivision B—SC De minimis test, SC ETR test and SC Routine profits test

8‑160  Meeting the SC De minimis test
  An MNE Group meets the SC De minimis test for a jurisdiction for a Fiscal Year if:
 (a) the MNE Group's Average GloBE Revenue for the jurisdiction for the Fiscal Year, computed in accordance with this Division, is less than 10 million Euros; and
 (b) the MNE Group's Average GloBE Income or Loss for the jurisdiction for the Fiscal Year, computed in accordance with this Division, is less than 1 million Euros.

8‑165  Meeting the SC ETR test
  An MNE Group meets the SC ETR test for a jurisdiction for a Fiscal Year if the MNE Group's Effective Tax Rate for the jurisdiction for the Fiscal Year, computed in accordance with this Division, is equal to or greater than the Minimum Rate.

8‑170  Meeting the SC Routine profits test
  An MNE Group meets the SC Routine profits test for a jurisdiction for a Fiscal Year if the MNE Group's Net GloBE Income for the jurisdiction for the Fiscal Year, computed in accordance with this Division, is equal to or less than the MNE Group's Substance‑based Income Exclusion Amount for the jurisdiction for the