Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p80
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 200573–203351

Income or Loss, GloBE Income or GloBE Loss (as the case may be) for the Fiscal Year has been reduced by an amount.
 (5) For the purposes of sections 5‑50, 5‑55 and 5‑65:
 (a) reduce the Eligible Payroll Costs accrued for the Fiscal Year of Eligible Employees of the Permanent Establishment by multiplying it by the proportion the amount mentioned in paragraph (4)(b) bears to the Permanent Establishment's Financial Accounting Net Income or Loss, GloBE Income or GloBE Loss (as the case may be) for the Fiscal Year, before the reduction mentioned in that paragraph; and
 (b) reduce the carrying value for the Fiscal Year of the Eligible Tangible Assets of the Permanent Establishment by multiplying it by the same proportion.

5‑85  Allocation of amounts in relation to Flow‑through Entities
 (1) For the purposes of sections 5‑50, 5‑55 and 5‑65, if, in relation to a Fiscal Year, a Constituent Entity of an MNE Group is a Flow‑through Entity, deal with the Eligible Payroll Costs accrued for the Fiscal Year of its Eligible Employees and the carrying value for the Fiscal Year of its Eligible Tangible Assets by applying subsections (2) to (4) of this section in sequence.
 (2) If:
 (a) the Flow‑through Entity is a Tax Transparent Entity that is not the Ultimate Parent Entity of the MNE Group; and
 (b) a proportion of the Financial Accounting Net Income or Loss of the Flow‑through Entity for the Fiscal Year has been allocated to a Constituent Entity‑owner of the Flow‑through Entity under paragraph 3‑255(1)(c);
allocate to the Constituent Entity‑owner the same proportion of the Flow‑through Entity's Eligible Payroll Costs accrued for the Fiscal Year of its Eligible Employees and the carrying value for the Fiscal Year of its Eligible Tangible Assets (computed disregarding paragraph 5‑80(2)(c), this section and section 5‑90).
 (3) If:
 (a) the Flow‑through Entity is the Ultimate Parent Entity of the MNE Group; and
 (b) the Flow‑through Entity's GloBE Income for the Fiscal Year has been reduced by an amount under subsection 7‑5(2);
reduce the Flow‑through Entity's Eligible Payroll Costs accrued for the Fiscal Year of its Eligible Employees and the carrying value for the Fiscal Year of its Eligible Tangible Assets by multiplying them by the proportion the amount mentioned in paragraph (b) bears to the Flow‑through Entity's GloBE Income for the Fiscal Year, before the reduction mentioned in that paragraph.
 (4) If the Flow‑through Entity is not the Ultimate Parent Entity of the MNE Group, disregard the Flow‑through Entity's remaining Eligible Payroll Costs accrued for the Fiscal Year of its Eligible Employees and the carrying value for the Fiscal Year of its Eligible Tangible Assets.
 (5) For the purposes of subsections (2) and (3):
 (a) treat Eligible