Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p23
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 58136–61006

aggregate, in excess of 1 million Euros; and
 (iii) arise because of the application of a particular principle or standard under the other accounting standard (instead of the application of the UPE accounting standard) to items of income or expense or transactions; and
 (e) it appears from the content of the GloBE Information Return for the MNE Group for the Fiscal Year that the Financial Accounting Net Income or Loss for the Constituent Entity for the Fiscal Year has been computed in accordance with this section.

Part 3‑2—Adjustments to determine GloBE Income or Loss

Division 1—Article 3.2.1 adjustments

3‑15  Adjustment—net taxes expense
  In computing a Constituent Entity's GloBE Income or Loss for a Fiscal Year, adjust the Constituent Entity's Financial Accounting Net Income or Loss for the Fiscal Year so as to reverse any debits or credits in the Constituent Entity's Financial Accounting Net Income or Loss for the Fiscal Year in respect of the following:
 (a) Covered Taxes (including Covered Taxes on income that is excluded in computing the GloBE Income or Loss);
 (b) to the extent it is not included in paragraph (a), a deferred tax asset attributable to a loss for the Fiscal Year;
 (c) IIR;
 (d) Qualified Domestic Minimum Top‑up tax;
 (e) UTPR;
 (f) Disqualified Refundable Imputation Tax;
 (g) Tax paid or accrued by an insurance company in respect of returns to policyholders to the extent that 3‑205 applies in relation to those taxes.

3‑20  Adjustment—Excluded Dividends
 (1) In computing a Constituent Entity's GloBE Income or Loss for a Fiscal Year:
 (a) adjust the Constituent Entity's Financial Accounting Net Income or Loss for the Fiscal Year so as to exclude any Excluded Dividends received or accrued by the Constituent Entity in the Fiscal Year; and
 (b) if an election under subsection (2) applies to the Constituent Entity and the Fiscal Year—for the purposes of this section and the definition of Excluded Dividends in subsection 3‑25(1), treat a Portfolio Shareholding of the Constituent Entity as a Short‑term Portfolio Shareholding of the Constituent Entity.

Election
 (2) A Filing Constituent Entity for an MNE Group may make an election for the MNE Group under this subsection that applies to a specified Constituent Entity of the MNE Group.
 (3) An election under subsection (2) is a Five‑Year Election.

3‑25  Meaning of Excluded Dividends, Short‑term Portfolio Shareholding and Portfolio Shareholding
 (1) Excluded Dividends means dividends or other distributions received or accrued in respect of an Ownership Interest, except:
 (a) where the Ownership Interest is a Short‑term Portfolio Shareholding in respect of the distributions; or
 (b) where the Ownership Interest is in an Investment Entity or Insurance Investment Entity, to the extent that the distributions are included under subsection 7‑150(2).
Note: If