Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p107
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 267642–270354

4‑5 and 4‑6), 6, 8 and 9 to the extent that they affect the application of Chapter 5 for the purposes of computing the Top‑up Tax of each of the Investment Entities.
Example: In computing the GloBE Income or Loss of one of the Investment Entities, do not treat the Investment Entities as the only Constituent Entities of the MNE Group. That GloBE Income or Loss will affect the computation of the Top‑up Tax of the Investment Entity under Chapter 5. In applying Chapter 5 to compute that Top‑up Tax, treat the Investment Entities as the only Constituent Entities of the MNE Group.

7‑105  Computing Jurisdictional Top‑up Tax for the purposes of computing Top‑up Tax of Investment Entity
 (1) For the purposes of computing the Top‑up Tax mentioned in paragraph 7‑100(1)(a) for a Fiscal Year of the Investment Entities that are located in a particular jurisdiction, compute the Jurisdictional Top‑up Tax (see section 5‑30) of the MNE Group for the jurisdiction for the Fiscal Year in accordance with this section.
Note: For the purposes of this section, treat the Investment Entities as the only Constituent Entities of the MNE Group (see section 7‑100).
 (2) In computing the Net GloBE Income or Net GloBE Loss of the MNE Group for the jurisdiction for the Fiscal Year under subsection 5‑15(1), treat the amount computed in accordance with the formula in subsection 5‑15(2) as being the sum of the MNE Group's Allocable GloBE Income or Loss for the Fiscal Year for each of the Investment Entities mentioned in subsection (1) of this section.
Example 1: That Net GloBE Income can be relevant to computing:
(a) the Effective Tax Rate of the MNE Group for the jurisdiction for a Fiscal Year; and
(b) the Excess Profit of the MNE Group for the jurisdiction for a Fiscal Year.
Example 2: That Net GloBE Loss can be relevant to computing any Additional Current Top up Tax of the MNE Group for the jurisdiction for a Fiscal Year under sections 4‑30 and 5‑100 (Adjusted Covered Taxes less than expected amount).
 (3) For the purposes of computing the Substance‑based Income Exclusion Amount (see section 5‑50) of the MNE Group for the jurisdiction for the Fiscal Year:
 (a) take into account only Eligible Tangible Assets and Eligible Payroll Costs of Eligible Employees of the Investment Entities; and
 (b) reduce the Payroll Carve‑out Amount and Tangible Asset Carve‑out Amount for each Investment Entity by multiplying it by the Ultimate Parent Entity's Inclusion Ratio for the Investment Entity; and
 (c) for the purposes of computing that Inclusion Ratio, treat each Investment Entity as a Low‑Taxed Constituent Entity.
Note: That Substance‑based Income Exclusion Amount is relevant to computing the Excess Profit of