Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p73
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
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Character Range: 182976–185565

paid amount); and
 (b) no Constituent Entity of the MNE Group objects to paying the disputed amount in judicial or administrative proceedings under a law of the jurisdiction; and
 (c) disregarding subsection (3), the paid amount would be all or part of an amount payable in relation to the Fiscal Year mentioned in subsection (1) by the Constituent Entity under a Qualified Domestic Minimum Top‑up Tax of the jurisdiction for the purposes of the definition of Domestic Top‑up Tax in section 5‑30;
for those purposes, treat the paid amount as an amount payable by the Constituent Entity under a Qualified Domestic Minimum Top‑up Tax of the jurisdiction for that Fiscal Year.

5‑40  Top‑up Tax of a Constituent Entity
 (1) Subsection (2) applies if an MNE Group has Net GloBE Income for a jurisdiction for a Fiscal Year.
 (2) The Top‑up Tax of a Constituent Entity of the MNE Group, located in the jurisdiction, for a Fiscal Year is the amount computed in accordance with the following formula:
where:
Aggregate GloBE Income of all CEs is the sum of the GloBE Income of all Constituent Entities of the MNE Group that have GloBE Income for the Fiscal Year included in the computation of Net GloBE Income of the MNE Group in accordance with section 5‑15 for the jurisdiction for the Fiscal Year.
GloBE Income of the CE is the GloBE Income of the Constituent Entity for the jurisdiction for the Fiscal Year.
Jurisdictional Top‑up Tax is the Jurisdictional Top‑up Tax of the MNE Group for the jurisdiction for the Fiscal Year.
 (3) Subject to the following subsections, if an MNE Group does not have Net GloBE Income for a jurisdiction for a Fiscal Year, the Top‑up Tax of a Constituent Entity of the MNE Group, located in the jurisdiction, for the Fiscal Year is zero.
 (4) Subsection (5) applies if:
 (a) an MNE Group does not have Net GloBE Income for a jurisdiction for a Fiscal Year (the current Fiscal Year); and
 (b) there are one or more amounts of Additional Current Top‑up Tax of the MNE Group for the jurisdiction for the current Fiscal Year, in respect of a prior Fiscal Year.
 (5) Increase the Top‑up Tax of a Constituent Entity of the MNE Group, located in the jurisdiction, for the current Fiscal Year by the amount computed in accordance with the following formula:
where:
Additional Current Top‑up Tax in respect of prior year is the sum of the amounts of Additional Current Top‑up Tax mentioned in paragraph (4)(b).
Aggregate GloBE Income of all CEs for prior year is the sum of the GloBE Income of all Constituent Entities of the MNE Group that have GloBE Income for the prior