Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p40
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 101019–103742

or Loss of the Constituent Entity for that Fiscal Year, adjust the Constituent Entity's Financial Accounting Net Income or Loss for that Fiscal Year so as to include the positive or negative amount that is:
 (a) the fair value of the asset or liability at the beginning of that Fiscal Year;
reduced by:
 (b) the carrying value of the asset or liability as computed in accordance with paragraph (2)(c).

3‑155  Adjustment—Aggregate Asset Gain—election
 (1) This section applies if an MNE Group has an Aggregate Asset Gain for a jurisdiction for a Fiscal Year.
 (2) A Filing Constituent Entity for the MNE Group may make an election for the MNE Group under this subsection that applies to a specified jurisdiction.
 (3) An election under subsection (2) is an Annual Election.

3‑160  Adjustment—Aggregate Asset Gain—effect
 (1) This section applies if an election for an MNE Group under subsection 3‑155(2) applies to a jurisdiction and to a Fiscal Year (the application year).

Adjustments to Adjusted Covered Taxes
 (2) In computing the Adjusted Covered Taxes for the application year of a Constituent Entity of the MNE Group located in the jurisdiction, exclude Covered Taxes in respect of any Net Asset Gain or Net Asset Loss of the Constituent Entity for the application year.

Adjustments to GloBE Income or Loss—application year
 (3) In computing the GloBE Income or Loss for the application year of a Constituent Entity of the MNE Group located in the jurisdiction, adjust the Constituent Entity's Financial Accounting Net Income or Loss for the Fiscal Year so as to:
 (a) include any amounts allocated under section 3‑165 to the Constituent Entity for the application year; and
 (b) exclude any Net Asset Gain or Net Asset Loss of the Constituent Entity for the application year.

Adjustments to GloBE Income or Loss and recalculation of ETR and Top‑up Tax—prior years
 (4) If an amount is allocated under section 3‑165 to a Constituent Entity of an MNE Group located in a jurisdiction for a Fiscal Year in the election's Look‑back Period (a Look‑back Year) that is not the application year:
 (a) recalculate in accordance with section 5‑95 the Effective Tax Rate and Jurisdictional Top‑up Tax of the MNE Group for the jurisdiction for the Look‑back Year; and
 (b) for the purposes of that recalculation, make the adjustments to the GloBE Income or Loss of Constituent Entities of the MNE Group for the Look‑back Year set out in subsection (5).
 (5) For the purposes of paragraph (4)(b), in computing the GloBE Income or Loss of a Constituent Entity of the MNE Group located in the jurisdiction for the Look‑back Year, adjust the Constituent Entity's Financial Accounting Net Income or Loss for the Fiscal Year so as