Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p58
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 146297–148950

Tax Rate for the Fiscal Year of the MNE Group for the jurisdiction in which the Constituent Entity is located, if the sum of the Adjusted Covered Taxes for the Fiscal Year of each Constituent Entity of the MNE Group located in that jurisdiction were:
 (a) computed without regard to any Covered Taxes imposed under the Blended CFC Tax Regime; and
 (b) if that jurisdiction imposes a Qualified Domestic Minimum Top‑up Tax—increased by an amount equal to the tax payable under the Qualified Domestic Minimum Top‑up Tax for the Fiscal Year, in respect of the Constituent Entities of the MNE Group that are located in that jurisdiction, to the extent the Blended CFC Tax Regime allows a foreign tax credit for that tax payable on the same terms as any other creditable Covered Tax.
 (5) For the purposes of subsection (3), compute the Sum of all Blended CFC Allocation Keys as follows:
 (a) first, identify each Entity that:
 (i) is an Entity in which the Constituent Entity‑owner holds an Ownership Interest; and
 (ii) is located in the jurisdiction in which the Constituent Entity mentioned in subsection (3) is located; and
 (iii) is not a Constituent Entity of the MNE Group;
 (b) next, compute the sum of the following:
 (i) the Blended CFC Allocation Key of each Constituent Entity of the MNE Group located in the jurisdiction;
 (ii) the Blended CFC Allocation Key of each Entity identified under paragraph (a), assuming that each such Entity were a Constituent Entity of the MNE Group.

4‑60  Meaning of Blended CFC Tax Regime
  A Blended CFC Tax Regime of a jurisdiction means a Controlled Foreign Company Tax Regime under which:
 (a) the tax liability of an owner located in the jurisdiction is determined by reference to an aggregate of the income, losses and creditable taxes of other Entities, located in one or more other jurisdictions, in which the owner holds an Ownership Interest; and
 (b) the lowest rate that, if it were the corporate tax rate applicable in the one or more jurisdictions in which the other Entities are located, would result in the tax charge in those jurisdictions being sufficient to prevent a tax charge on the owner under the Controlled Foreign Company Tax Regime in respect of its share of the income of the other Entities for a Fiscal Year, is less than the Minimum Rate; and
 (c) income of Entities located in the jurisdiction in which the owner is located is not taken into account.

4‑65  Allocation of amounts from Constituent Entity‑owner to Hybrid Entity or Reverse Hybrid Entity
 (1) An amount in respect of Covered Taxes for a Fiscal Year is allocated from a Constituent Entity‑owner of a Constituent Entity