Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p50
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 126373–129154

the Permanent Establishment are its expenses that:
 (i) are attributable to the operations described in subparagraph (a)(ii) of this subsection; and
 (ii) are not deducted for tax purposes in the jurisdiction in which the Main Entity is located.

3‑245  Adjustment of Permanent Establishment's Financial Accounting Net Income or Loss
  Adjust the amount that would be, disregarding this section, a Permanent Establishment's Financial Accounting Net Income or Loss to reflect only the amounts of income and expense that are (or, if paragraph (c) applies, would be) attributable to the Permanent Establishment in accordance with:
 (a) if the Permanent Establishment is a Permanent Establishment because of paragraph 19(1)(a) of the Act—the Tax Treaty applicable to the Permanent Establishment; or
 (b) if the Permanent Establishment is a Permanent Establishment because of paragraph 19(1)(b) of the Act—the law of the jurisdiction in which the Permanent Establishment is located; or
 (c) if the Permanent Establishment is a Permanent Establishment because of paragraph 19(1)(c) of the Act—Article 7 of the OECD Model Tax Convention.

3‑250  Computing GloBE Income or Loss of the Main Entity in respect of a Permanent Establishment
 (1) Subject to subsection (2), in computing the GloBE Income or Loss of the Main Entity in respect of a Permanent Establishment, do not take into account the Financial Accounting Net Income or Loss of the Permanent Establishment.
 (2) If, disregarding this subsection, a Permanent Establishment would have a GloBE Loss for a Fiscal Year:
 (a) in computing the GloBE Income or Loss of the Main Entity in respect of the Permanent Establishment for the Fiscal Year, treat the amount of the GloBE Loss (the loss amount) as an expense of the Main Entity (and not of the Permanent Establishment), to the extent that the loss amount:
 (i) is treated as an expense in computing the Main Entity's taxable income in the jurisdiction in which the Main Entity is located; and
 (ii) is not set off against an item of income that is subject to tax under the laws of both the jurisdiction in which the Permanent Establishment is located and the jurisdiction in which the Main Entity is located; and
 (b) where, disregarding this paragraph, the Permanent Establishment would have GloBE Income for a subsequent Fiscal Year, treat the lesser of the following as GloBE Income of the Main Entity (and not of the Permanent Establishment):
 (i) the amount of the GloBE Income;
 (ii) the loss amount, to the extent that it is treated under paragraph (a) as an expense of the Main Entity (and not of the Permanent Establishment), reduced by amounts (if any) treated as GloBE Income of the Main Entity under a previous operation of this paragraph.
 (3) In computing the extent