Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p76
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 190270–193134

paragraph (1)(a), if, in the Fiscal Year:
 (a) an Eligible Employee performs activities for the MNE Group both in the jurisdiction and outside the jurisdiction; and
 (b) the proportion of the Eligible Employee's time spent performing those activities in the jurisdiction is 50% or less;
reduce the Eligible Payroll Costs accrued for the Fiscal Year of the Eligible Employee by multiplying it by that proportion.
 (3) For the purposes of paragraph (1)(a), if a Filing Constituent Entity for an MNE Group chooses, under subsection (4), to exclude certain Eligible Payroll Costs for certain Eligible Employees from the computation mentioned in that paragraph, exclude those Eligible Payroll Costs in computing the total amount mentioned in that paragraph.
 (4) For the purposes of subsection (3), a Filing Constituent Entity for an MNE Group may choose to exclude some or all Eligible Payroll Costs for some or all Eligible Employees from the computation mentioned paragraph (1)(a) by excluding relevant amounts from the MNE Group's GloBE Information Return for the Fiscal Year.

5‑60  Meaning of Eligible Payroll Costs and Eligible Employee
 (1) Eligible Payroll Costs means the following amounts, as recorded in financial accounts:
 (a) employee compensation expenditures, including salaries, wages, stock‑based compensation and other expenditures that provide a direct and separate personal benefit to the employee (such as health insurance and pension contributions);
 (b) payroll and employment taxes;
 (c) employer social security contributions.
 (2) Eligible Employee of a Constituent Entity of an MNE Group means an individual who is:
 (a) an employee (including a part‑time employee) of the Constituent Entity; or
 (b) an independent contractor participating in the ordinary operating activities of the MNE Group under the direction and control of one or more Constituent Entities of the MNE Group.

5‑65  Tangible Asset Carve‑out Amount
 (1) The Tangible Asset Carve‑out Amount for a Constituent Entity of an MNE Group located in a jurisdiction, for a Fiscal Year, is computed as follows:
 (a) first, compute the total amount of the carrying values for the Fiscal Year of each Eligible Tangible Asset of the Constituent Entity;
 (b) next, exclude from the result of paragraph (a) amounts to the extent they are the carrying value of property (including land or buildings) that is held for sale, lease or investment;
 (c) next, multiply the result of paragraph (b) by 5%.
Note: For paragraph (b), do not exclude certain amounts if the property held for lease is subject to an operating lease, or an intragroup lease that is a finance lease: see section 5‑70.
 (2) For the purposes of paragraph (1)(a):
 (a) compute the carrying value of an Eligible Tangible Asset of the Constituent Entity for the Fiscal Year:
 (i) based on the average of the carrying value