5‑50 Substance‑based Income Exclusion Am5‑50 Substance‑based Income Exclusion Amount

5‑50 Substance‑based Income Exclusion Amount

(1) The Substance‑based Income Exclusion Amount of an MNE Group for a jurisdiction for a Fiscal Year is the sum of the following: (a) the sum of the Payroll Carve‑out Amounts for each Constituent Entity of the MNE Group located in the jurisdiction, for the Fiscal Year; (b) the sum of the Tangible Asset Carve‑out Amounts for each Constituent Entity of the MNE Group located in the jurisdiction, for the Fiscal Year.

Note: In computing the Substance‑based Income Exclusion Amount of an MNE Group, further special rules (in addition to those mentioned in the note to the heading to Part 5‑1) apply if the MNE Group has any of the following:

(a) a Permanent Establishment: see section 5‑80;
(b) a Flow‑through Entity: see section 5‑85;
(c) an Ultimate Parent Entity that is subject to a Deductible Dividend Regime: see section 5‑90 and subsections 7‑20(7) and 7‑25(3);
(d) an Entity that becomes, or ceases to be, a Constituent Entity of the MNE Group during the Fiscal Year: section 6‑35.

(2) However, the Substance‑based Income Exclusion Amount of an MNE Group for a jurisdiction for a Fiscal Year is taken to be zero if an election for the MNE Group under subsection (3) applies to the jurisdiction and the Fiscal Year. Election (3) 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. (4) An election under subsection (3) is an Annual Election. Deemed election (5) If the GloBE Information Return filed for a Fiscal Year for an MNE Group by a Filing Constituent Entity for the MNE Group: (a) does not compute the Substance‑based Income Exclusion Amount for a jurisdiction; or (b) does not claim the Substance‑based Income Exclusion Amount for a jurisdiction in the computation of Jurisdictional Top‑up Tax for the jurisdiction; the MNE Group is taken to have made an election under subsection (3) that applies to the jurisdiction and Fiscal Year. (6) If an MNE Group is taken, under subsection (5), to have made an election, the election cannot be revoked.