Section 157

the financial statements prepared by an Entity in accordance with an Acceptable Financial Accounting

Standard, in which the assets, liabilities, income, expenses and cash flows of that Entity and the

Entities in which it has a Controlling Interest are presented as those of a single economic unit;

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where an Entity is an entity under paragraph (b) of the definition of “Group”, the financial statements of the Entity that are prepared in accordance with an Acceptable Financial Accounting Standard;

where the Ultimate Parent Entity has financial statements described in paragraph (a) or (b) that are not prepared in accordance with an Acceptable

Financial Accounting Standard, the financial statements are those that have been prepared subject to adjustments to prevent any Material Competitive

Distortions; and

where the Ultimate Parent Entity does not prepare financial statements described in paragraphs (a) to (c), the Consolidated Financial Statements of the Ultimate

Parent Entity are those that would have been prepared if such Entity were required to prepare such statements in accordance with an Authorised

Financial Accounting Standard that is either an

Acceptable Financial Accounting Standard or another financial accounting standard that is adjusted to prevent any Material Competitive Distortions;

“Constituent Entity” means—

any Entity that is included in a Group; or

any Permanent Establishment of a Main Entity that is within paragraph (a) and which is treated as separate from the Main Entity and any other Permanent

Establishment of that Main Entity, but does not include an Excluded Entity;

“Constituent Entity-owner” means a Constituent Entity that directly or indirectly owns an Ownership Interest in another

Constituent Entity of the same Multinational Enterprise Group;

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“Controlled Foreign Company Tax Regime” means a set of tax rules other than an Income Inclusion Rule under which a direct or indirect shareholder of a foreign entity being the controlled foreign company is subject to current taxation on its share of part or all of the income earned by the controlled foreign company, irrespective of whether that income is distributed currently to the shareholder;

“Controlling Interest” means an Ownership Interest in an

Entity such that the interest holder—

is required to consolidate the assets, liabilities, income, expenses and cash flows of the Entity on a line-by-line basis in accordance with an Acceptable

Financial Accounting Standard; or

would have been required to consolidate the assets, liabilities, income, expenses and cash flows of the

Entity on a line-by-line basis if the interest holder had prepared Consolidated Financial Statements;

“Covered Taxes” means—

taxes recorded in the financial accounts of a Constituent

Entity with respect to its income or profits or its share of the income or profits of a Constituent

Entity in which it owns an Ownership Interest;

taxes on distributed profits, deemed profit distributions, and non-business expenses imposed under an Eligible

Distribution Tax System;

taxes imposed in lieu of a generally applicable corporate income tax; and

taxes levied by reference to retained earnings and corporate equity, including a Tax on multiple components based on income and equity,

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but does not include any amount of—

Multinational Top-up Tax accrued by a Parent Entity under a Qualified Income Inclusion Rule;

Qualified Domestic Top-up Tax accrued by a Constituent

Entity;

taxes attributable to an adjustment made by a Constituent Entity as a result of the application of a set of rules equivalent to Articles 2.4 to 2.6 of the

GloBE Model Rules (including any provisions of the

GloBE Model Rules associated with those articles)

that are included in the domestic law of a jurisdiction and that are implemented and administered in a way that is consistent with the outcomes provided for under the GloBE Model Rules provided that such jurisdiction does not provide any benefits that are related to such rules;

a Disqualified Refundable Imputation Tax;

taxes paid by an insurance company in respect of returns to policy holders;

“Designated Filing Entity” means the Constituent Entity, other than the Ultimate Parent Entity, that has been appointed by the Multinational Enterprise Group to file the information return on behalf of the Multinational Enterprise Group;

“Disqualified Refundable Imputation Tax” means any amount of Tax, other than a Qualified Imputation Tax, accrued or paid by a Constituent Entity that is—

refundable to the beneficial owner of a dividend distributed by such Constituent Entity in respect of that dividend or creditable by the beneficial owner against a tax liability other than a tax liability in respect of such dividend; or

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refundable to the distributing corporation upon distribution of a dividend;

“Domestic Top-up Tax” means tax as provided under section 159;

“Effective Tax Rate” means, in respect of a Multinational

Enterprise Group, the sum of the Adjusted Covered Taxes of each Constituent Entity located in the jurisdiction divided by the Net GloBE Income of the jurisdiction for the Financial

Year;

“Election Year” means, in respect of an Annual Election, the year for which the election is made;

“Eligible Distribution Tax System” means a corporate income tax system that—

imposes an income tax on the corporation with the tax generally payable only when the corporation distributes profits to shareholders, is deemed to distribute profits to shareholders, or incurs certain non-business expenses;

imposes tax at a rate equal to or in excess of the

Minimum Rate; and

was in force on or before 1 July 2021;

“Eligible Employees” means employees, including part-time employees, of a Constituent Entity that is a member of the

Multinational Enterprise Group and independent contractors participating in the ordinary operating activities of the

Multinational Enterprise Group under the direction and control of the Multinational Enterprise Group;

“Eligible Payroll Costs” means employee compensation expenditures (including salaries, wages, and other expenditures that provide a direct and separate personal benefit to the employee, such as health insurance and pension contributions), payroll and employment taxes, and employer social security contributions;

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“Eligible Tangible Assets” means—

property, plant, and equipment located in that jurisdiction;

natural resources located in that jurisdiction;

a lessee’s right of use of tangible assets located in that jurisdiction; and

a licence or similar arrangement from the Government for the use of immovable property or exploitation of natural resources that entails significant investment in tangible assets;

“Entity” means—

any legal person (other than a natural person); or

an arrangement that prepares separate financial accounts, such as a partnership or trust;

“Excess Profit” means the amount computed in accordance with section 176;

“Excluded Dividends” means dividends or other distributions received or accrued in respect of an Ownership Interest, except for—

a Short-term Portfolio Shareholding; and

an Ownership Interest in an Investment Entity that is subject to an election under section 194;

“Excluded Entity” means—

a Governmental Entity;

an International Organisation;

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a Non-profit Organisation;

a Pension Fund;

an Investment Fund that is an Ultimate Parent Entity;

a Real Estate Investment Vehicle that is an Ultimate

Parent Entity; or

an Entity—

where at least ninety-five per cent of the value of the Entity is owned directly or through a chain of Excluded Entities by one or more Excluded Entities referred above other than a Pension Services Entity and where that Entity—

operates exclusively or almost exclusively to hold assets or invest funds for the benefit of the

Excluded Entity or Entities; or

only carries out activities that are ancillary to those carried out by the

Excluded Entity or Entities; or

gains and losses from changes in fair value of an Ownership Interest, except for a Portfolio

Shareholding;

profit or loss in respect of an Ownership Interest included under the equity method of accounting; and

gains and losses from disposition of an Ownership

Interest, except for a disposition of a Portfolio

Shareholding;

“Filing Constituent Entity” means an Entity filing the return in accordance with section 201 or 202;

“Financial Accounting Net Income or Loss” means the net income or loss determined for a Constituent Entity before any consolidation adjustments eliminating intra-group transactions in preparing Consolidated Financial Statements of the Ultimate Parent Entity;

“Financial Year” means an accounting period with respect to which the Ultimate Parent Entity of the Multinational Enterprise

Group prepares its Consolidated Financial Statements and in the case of Consolidated Financial Statements as defined in paragraph (d) of the definition of “Consolidated Financial

Statements”, Financial Year means the calendar year;

“Five-Year Election” means an election in the prescribed form made by a Filing Constituent Entity and furnished to the Director General with respect to a Financial Year

(hereinafter referred to as the “election year”) that cannot be revoked with respect to the election year or the four succeeding Financial Years and if revoked with respect to a Financial Year (hereinafter referred to as the “revocation year”), a new election cannot be made with respect to the four Financial Years succeeding the revocation year;

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“General Government” means the central administration, agencies whose operations are under its effective control, state and local governments and their administrations;

“GloBE Implementation Framework” means the procedures to be developed by the Inclusive Framework on Base Erosion and Profit Shifting in order to develop administrative rules, guidance, and procedures that will facilitate the coordinated implementation of this Part;

“GloBE Income of all Constituent Entities” means the sum of the GloBE Income of all Constituent Entities located in the jurisdiction determined in accordance with Chapter 5 of this Part for the Financial Year;

“GloBE Income or Loss” means the Financial Accounting

Net Income or Loss determined for the Constituent Entity for the Financial Year adjusted for the items described in sections 165 to 168 of each Constituent Entity;

“GloBE Loss Deferred Tax Asset” means the amount computed in accordance with section 172;

“GloBE Losses of all Constituent Entities” means the sum of the GloBE Losses of all Constituent Entities located in the jurisdiction determined in accordance with Chapter 5 of this Part for the Financial Year;

“GloBE Model Rules” means the model rules published by the Organisation for Economic Co-operation and Development/

G20 Inclusive Framework on Base Erosion and Profit

Shifting as “Tax Challenges Arising from the Digitalisation of the Economy – Global Anti-Base Erosion Model Rules

(Pillar Two): Inclusive Framework on Base Erosion and

Profit Shifting”;

“GloBE Reorganisation” means a transformation or transfer of assets and liabilities such as in a merger, demerger, liquidation, or similar transaction where—

the consideration for the transfer is, in whole or in significant part, equity interests issued by the acquiring

Constituent Entity or by a person connected with the acquiring Constituent Entity, or, in the case of a liquidation, equity interests of the target or, when no consideration is provided, where the issuance of an equity interest would have no economic significance;

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the disposing Constituent Entity’s gain or loss on those assets is not subject to tax, in whole or in part; and

the tax laws of the jurisdiction in which the acquiring Constituent Entity is located require the acquiring Constituent Entity to compute taxable income after the disposition or acquisition using the disposing Constituent

Entity’s tax basis in the assets, adjusted for any

Non-qualifying Gain or Loss on the disposition or acquisition;

“GloBE Rules” means—

the GloBE Model Rules;

the GloBE Rules Commentary and any further commentaries published by the Organisation for

Economic Co-operation and Development/G20

Inclusive Framework on Base Erosion and Profit

Shifting that are relevant to the implementation of the GloBE Rules; and

any Agreed Administrative Guidance or any other guidance published by the Organisation for Economic

Co-operation and Development/G20 Inclusive

Framework on Base Erosion and Profit Shifting that are relevant to the implementation of the GloBE

Rules;

“GloBE Rules Commentary” means—

the commentary on the GloBE Model Rules published by the Organisation for Economic

Co-operation and Development/G20 Inclusive

Framework on Base Erosion and Profit Shifting as

“Tax Challenges Arising from the Digitalisation of the Economy – Commentary to the Global Anti-Base

Erosion Model Rules (Pillar Two)”; and

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the examples illustrating the application of the

GloBE Model Rules published by the Organisation for Economic Co-operation and Development/G20

Inclusive Framework on Base Erosion and Profit

Shifting as “Tax Challenges Arising from the

Digitalisation of the Economy – Global Anti-Base

Erosion Model Rules (Pillar Two) Examples”;

“Governmental Entity” means an Entity that meets all of the following criteria:

it is part of or wholly-owned by a government,

(including any political subdivision or local authority thereof);

it does not carry on a trade or business and it has the principal purpose of—

fulfilling a government function; or

it is accountable to the government on its overall performance, and provides annual information reporting to the government; and

its assets vest in such government upon dissolution and to the extent it distributes net earnings, such net earnings are distributed solely to such government with no portion of its net earnings inuring to the benefit of any private person;

“Group” means—

a collection of Entities that are related through ownership or control such that the assets, liabilities, income, expenses and cash flows of those Entities are—

included in the Consolidated Financial

Statements of the Ultimate Parent Entity;

or

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an Entity that is located in one jurisdiction and has one or more Permanent Establishments located in other jurisdictions provided that the Entity is not a part of another Group mentioned in paragraph (a);

“Group Entity” means, in respect of any Entity or Group, an Entity that is a member of the same Group;

“High-Tax Counterparty” means a Constituent Entity that is located in a jurisdiction that is not a Low-Tax Jurisdiction or that is located in a jurisdiction that would not be a Low-Tax

Jurisdiction if its Effective Tax Rate were determined without regard to any income or expense accrued by that Entity in respect of an Intragroup Financing Arrangement;

“Income Inclusion Rule” means the rules for the allocation of Multinational Top-up Tax as provided in Chapter 4 of this Part;

“information return” means a return in the prescribed form as provided for under section 201;

“Insurance Investment Entity” means an Entity that would meet the definition of an Investment Fund or a Real Estate

Investment Vehicle except that it is established in relation to liabilities under an insurance or annuity contract and is wholly-owned by an Entity that is subject to regulation in its location as an insurance company;

“Intermediate Parent Entity” means a Constituent Entity

(other than an Ultimate Parent Entity, Partially-Owned Parent

Entity, Permanent Establishment, or Investment Entity) which owns (directly or indirectly) an Ownership Interest in another

Constituent Entity in the same Multinational Enterprise Group;

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“International Organisation” means any intergovernmental organisation (including a supranational organisation) or wholly-owned agency or instrumentality thereof that meets all of the following criteria:

it is comprised primarily of governments;

it has in effect a headquarters or substantially similar agreement such as arrangements that entitle the organisation’s offices or establishments in the jurisdiction to privileges and immunities with the jurisdiction in which it is established; and

law or its governing documents prevent its income inuring to the benefit of private persons;

“International Shipping Income” means the net income obtained by a Constituent Entity from the following activities:

the transportation of passengers or cargo by ships that it operates in international traffic, whether the ship is owned, leased or otherwise at the disposal of the Constituent Entity;

the transportation of passengers or cargo by ships operated in international traffic under slot-chartering arrangements;

leasing a ship, to be used for the transportation of passengers or cargo in international traffic, on charter fully equipped, crewed and supplied;

leasing a ship on a bare boat charter basis, for the use of transportation of passengers or cargo in international traffic, to another Constituent Entity;

the participation in a pool, a joint business or an international operating agency for the transportation of passengers or cargo by ships in international traffic;

the sale of a ship used for the transportation of passengers or cargo in international traffic provided that the ship has been held for use by the Constituent

Entity for a minimum of one year,

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and shall not include net income obtained from the transportation of passengers or cargo by ships via inland waterways within the same jurisdiction;

“Intragroup Financing Arrangement” means any arrangement entered into between two or more members of the Multinational

Enterprise Group whereby a High-Tax Counterparty directly or indirectly provides credit or otherwise makes an investment in a Low-Tax Entity;

“Investment Entity” means—

an Investment Fund or a Real Estate Investment

Vehicle;

an Entity that is at least ninety-five per cent owned directly by an Entity described in paragraph (a) or through a chain of such Entities and that operates exclusively or almost exclusively to hold assets or invest funds for the benefit of such Investment

Entities; and

an Entity where at least eighty-five per cent of the value of the Entity is owned by an Entity referred to in paragraph (a) provided that substantially all of the Entity’s income is Excluded Dividends or

Excluded Equity Gain or Loss that is excluded from the computation of GloBE Income or Loss in accordance with paragraph 165(1)(b) or (c);

“Investment Fund” means an Entity that meets all of the following criteria:

it is designed to pool assets (which may be financial and non-financial) from a number of investors some of which are not connected;

it invests in accordance with a defined investment policy;

it allows investors to reduce transaction, research, and analytical costs, or to spread risk collectively;

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it is primarily designed to generate investment income or gains, or protection against a particular or general event or outcome;

investors have a right to return from the assets of the fund or income earned on those assets, based on the contributions made by those investors;

the Entity or its management is subject to a regulatory regime in the jurisdiction in which it is established or managed (including appropriate anti-money laundering and investor protection regulation); and

it is managed by investment fund management professionals on behalf of the investors;

“Joint Venture” means an Entity whose financial results are reported under the equity method in the Consolidated

Financial Statements of the Ultimate Parent Entity provided that the Ultimate Parent Entity holds directly or indirectly at least fifty per cent of its Ownership Interests and does not include—

an Ultimate Parent Entity of a Multinational Enterprise

Group that is subject to this Part;

an Excluded Entity mentioned in paragraphs (a) to (f)

of the definition of “Excluded Entity”;

an Entity whose Ownership Interest held by the

Multinational Enterprise Group are held directly through an Excluded Entity referred in paragraphs (a)

to (f) of the definition of “Excluded Entity” and the Entity—

operates exclusively or almost exclusively to hold assets or invest funds for the benefit of its investors;

an Entity which is held by a Multinational Enterprise

Group composed exclusively of Excluded Entities;

or

a Joint Venture Subsidiary;

“Joint Venture Group” means a Joint Venture and its Joint

Venture Subsidiaries;

“Joint Venture Subsidiary” means an Entity whose assets, liabilities, income, expenses and cash flows are consolidated by a Joint Venture under an Acceptable Financial Accounting

Standard (or would have been consolidated had it been required to consolidate such items in accordance with an

Acceptable Financial Accounting Standard);

“Local Tangible Asset” means immovable property located in the same jurisdiction as the Constituent Entity;

“Look-back Period” means, in respect of an election under subsections 165(16) to (19), the Election Year and the four prior Financial Years;

“Loss Year” means, in respect of jurisdiction for which the Filing Constituent Entity has made an election under subsections 165(16) to (19), a Financial Year in the Look-back

Period for which there is a Net Asset Loss for a Constituent

Entity located in that jurisdiction and the total amount of

Net Asset Loss of all such Constituent Entities exceeds the total amount of their Net Asset Gain;

“Low-Taxed Constituent Entity” means a Constituent Entity of the Multinational Enterprise Group that is located in a

Low-Tax Jurisdiction or a Stateless Constituent Entity that, in respect of a Financial Year, has GloBE Income and is subject to an Effective Tax Rate as determined under Chapter 7

of this Part in that Financial Year that is lower than the

Minimum Rate;

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“Low-Tax Jurisdiction”, in respect of a Multinational

Enterprise Group in any Financial Year, means a jurisdiction where the Multinational Enterprise Group has Net GloBE

Income and is subject to an Effective Tax Rate as determined under Chapter 7 of this Part in that period that is lower than the Minimum Rate;

“Main Entity” means, in respect of a Permanent

Establishment—

the Entity that includes the Financial Accounting Net

Income or Loss of the Permanent Establishment in its financial statements; and

is deemed to have the Controlling Interests of its

Permanent Establishment;

“Material Competitive Distortion” means, in respect of the application of a specific principle or procedure under a set of generally accepted accounting principles, an application that results in an aggregate variation greater than seventy five million euro in a Financial Year as compared to the amount that would have been determined by applying the corresponding

International Financial Reporting Standards principle or procedure and where the application of a specific principle or procedure results in a Material Competitive Distortion, the accounting treatment of any item or transaction subject to that principle or procedure must be adjusted to conform to the treatment required for the item or transaction under

International Financial Reporting Standards in accordance with any Agreed Administrative Guidance;

“Minimum Rate” means fifteen per cent;

“Minority-Owned Constituent Entity” means a Constituent

Entity where the Ultimate Parent Entity has a direct or indirect

Ownership Interest in that Entity of thirty per cent or less;

“Multinational Enterprise Group” means any Group that includes at least one Entity or Permanent Establishment that is not located in the jurisdiction of the Ultimate Parent

Entity;

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“Multinational Top-up Tax” means tax computed for the jurisdiction or Constituent Entity in accordance with sections 175 to 179;

“Multinational Top-up Tax Percentage” means the percentage computed in accordance with section 175;

“Net Asset Gain” means, in respect of an election under subsections 165(16) to (19), the net gain from the disposition of Local Tangible Assets by a Constituent Entity located in the jurisdiction for which the election was made excluding the gain or loss on a transfer of assets to another Group

Member;

“Net Asset Loss” means, in respect of a Constituent Entity and a Financial Year, the net loss from the disposition of

Local Tangible Assets by that Constituent Entity in that year excluding the gain or loss on a transfer of assets to another Group Member. The amount of Net Asset Loss shall be reduced by the amount of Net Asset Gain or Adjusted

Asset Gain which is set-off against such loss pursuant to the application of paragraph 165(18)(b) or (c) as a result of a previous election made under subsections 165(16) to (19);

“Net GloBE Income” means the amount as determined in accordance with subsection 174(4);

“Net GloBE Loss” means the amount as determined in accordance with subsection 172(3);

“Non-profit Organisation” means an Entity that meets all of the following criteria:

it is established and operated in its jurisdiction of residence—

exclusively for religious, charitable, scientific, artistic, cultural, athletic, educational, or other similar purposes; or

substantially all of the income from the activities mentioned in paragraph (a) is exempt from income tax in its jurisdiction of residence;

it has no shareholders or members who have a proprietary or beneficial interest in its income or assets;

the income or assets of the Entity may not be distributed to, or applied for the benefit of, a private person or non-charitable Entity other than—

pursuant to the conduct of the Entity’s charitable activities;

upon termination, liquidation or dissolution of the

Entity, all of its assets must be distributed or revert to a Non-profit Organisation or to the government including any Governmental Entity of the Entity’s jurisdiction of residence or any political subdivision thereof, but does not include any Entity carrying on a trade or business which is not directly related to the purposes for which it was established;

“Non-Qualified Refundable Tax Credit” means a tax credit that is not a Qualified Refundable Tax Credit but that is refundable in whole or in part;

“Non-qualifying Gain or Loss” means the lesser of the gain or loss of the disposing Constituent Entity arising in connection with a GloBE Reorganisation that is subject to tax in the disposing Constituent Entity’s location and the financial accounting gain or loss arising in connection with the GloBE Reorganisation;

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“OECD Model Tax Convention” means the Model

Tax Convention on Income and on Capital: Condensed

Version 2017 published by the Organisation for Economic

Co-operation and Development;

“Other Comprehensive Income” means items of income and expense that are not recognised in profit or loss as required or permitted by the Authorised Financial Accounting

Standard used in the Consolidated Financial Statements. Other

Comprehensive Income is usually reported as an adjustment to equity in the statement of financial position;

“Ownership Interest” means any equity interest that carries rights to the profits, capital or reserves of an Entity, including the profits, capital or reserves of a Main Entity’s Permanent

Establishment;

“Parent Entity” means an Ultimate Parent Entity that is not an Excluded Entity, an Intermediate Parent Entity, or a

Partially-Owned Parent Entity;

“Partially-Owned Parent Entity” means a Constituent Entity other than an Ultimate Parent Entity, Permanent Establishment,

Investment Entity or an Insurance Investment Entity that—

owns directly or indirectly an Ownership Interest in another Constituent Entity of the same Multinational

Enterprise Group; and

has more than twenty per cent of the Ownership

Interests in its profits held directly or indirectly by persons that are not Constituent Entities of the

Multinational Enterprise Group;

“Pension Fund” means—

an Entity that is established and operated in a jurisdiction exclusively or almost exclusively to administer or provide retirement benefits and ancillary or incidental benefits to persons and regulated as such by that jurisdiction or one of its political subdivisions or local authorities or those benefits are secured or otherwise protected by national regulations and funded by a pool of assets held through a fiduciary

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arrangement or trustor to secure the fulfilment of the corresponding pension obligations against a case of insolvency of the Multinational Enterprise

Group; or

a Pension Services Entity;

“Pension Services Entity” means an Entity that is established and operated exclusively or almost exclusively—

to invest funds for the benefit of Entities referred to in paragraph (a) of the definition of “Pension Fund”; or

to carry out activities that are ancillary to those regulated activities carried out by the Entities referred to in paragraph (a) of the definition of “Pension

Fund” provided that they are members of the same

Group;

“Permanent Establishment” means—

a place of business including a deemed place of business situated in a jurisdiction and treated as a permanent establishment in accordance with an applicable Tax Treaty in force provided that such jurisdiction taxes the income attributable to it in accordance with a provision similar to Article 7 of the OECD Model Tax Convention;

if there is no applicable Tax Treaty in force, a place of business including a deemed place of business in respect of which a jurisdiction taxes under its domestic law the income attributable to such place of business on a net basis similar to the manner in which it taxes its own tax residents;

if a jurisdiction has no corporate income tax system, a place of business including a deemed place of business situated in that jurisdiction that would be treated as a permanent establishment in accordance

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with the OECD Model Tax Convention provided that such jurisdiction would have had the right to tax the income attributable to it in accordance with

Article 7 of that model; or

a place of business or a deemed place of business that is not already described in paragraphs (a) to (c)

through which operations are conducted outside the jurisdiction where the Entity is located provided that such jurisdiction exempts the income attributable to such operations;

“Portfolio Shareholding” means Ownership Interests in an

Entity that are held by the Multinational Enterprise Group and that carry rights to less than ten per cent of the profits, capital, reserves, or voting rights of that Entity at the date of the distribution or disposition;

“Qualified Ancillary International Shipping Income” means net income obtained by a Constituent Entity from the following activities that are performed primarily in connection with the transportation of passengers or cargo by ships in international traffic:

leasing a ship on a bare boat charter basis to another shipping enterprise that is not a Constituent Entity, provided that the charter does not exceed three years;

sale of tickets issued by other shipping enterprises for the domestic leg of an international voyage;

leasing and short-term storage of containers or detention charges for the late return of containers;

provision of services to other shipping enterprises by engineers, maintenance staff, cargo handlers, catering staff, and customer services personnel;

investment income where the investment that generates the income is made as an integral part of the carrying on the business of operating the ships in international traffic;

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“Qualified Domestic Top-up Tax” means a minimum tax that is included in the domestic law of a jurisdiction and that—

determines the Excess Profits of the Constituent

Entities located in the jurisdiction in a manner that is equivalent to the GloBE Rules;

operates to increase domestic tax liability with respect to domestic Excess Profits to the Minimum Rate for the jurisdiction and Constituent Entities for a

Financial Year;

is implemented and administered in a way that is consistent with the outcomes provided for under the

GloBE Model Rules and GloBE Rules Commentary and that jurisdiction does not provide any benefits that are related to such rules; and

may compute domestic Excess Profits based on an

Acceptable Financial Accounting Standard permitted by the Authorised Accounting Body or an Authorised

Financial Accounting Standard adjusted to prevent any Material Competitive Distortions, rather than the financial accounting standard used in the Consolidated

Financial Statements;

“Qualified Imputation Tax” means a Covered Tax accrued or paid by a Constituent Entity that is refundable or creditable to the beneficial owner of a dividend distributed by such

Constituent Entity or, in the case of a Covered Tax accrued or paid by a Permanent Establishment, a dividend distributed by the Main Entity, to the extent that the refund is payable, or the credit is provided—

by a jurisdiction other than the jurisdiction which imposed the Covered Taxes under a foreign tax credit regime;

to a beneficial owner of the dividend that is subject to tax at a nominal rate that equals or exceeds the

Minimum Rate on the dividend on a current basis under the domestic law of the jurisdiction which imposed the Covered Taxes on the Constituent

Entity;

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to a person who is the beneficial owner of the dividend and tax resident in the jurisdiction which imposed the Covered Taxes on the Constituent Entity and who is subject to tax on the dividends as ordinary income; or

to a Governmental Entity, an International Organisation, a resident Non-profit Organisation, a resident Pension

Fund, a resident Investment Entity that is not a Group

Entity, or a resident life insurance company to the extent that the dividends are received in connection with a Pension Fund business and subject to tax in a similar manner as a dividend received by Pension

Fund (a Non-Profit Organisation or Pension Fund is resident in a jurisdiction if it is created and managed in that jurisdiction, an Investment Entity is resident in a jurisdiction if it is created and regulated in the jurisdiction and a life insurance company is resident in the jurisdiction in which it is located);

“Qualified Income Inclusion Rule” means a set of rules equivalent to Article 2.1 to Article 2.3 of the GloBE Model

Rules including any provisions of the GloBE Model Rules associated with those articles that are included in the domestic law of a jurisdiction and that are implemented and administered in a way that is consistent with the outcomes provided for under the GloBE Model Rules and the GloBE

Rules Commentary provided that such jurisdiction does not provide any benefits that are related to such rules;

“Qualified Refundable Tax Credit” means—

a refundable tax credit designed in a way such that it must be paid as cash or available as cash equivalents within four years from when a Constituent Entity satisfies the conditions for receiving the credit under the laws of the jurisdiction granting the credit;

a tax credit that is refundable in part to the extent it must be paid as cash or available as cash equivalents within four years from when a Constituent Entity satisfies the conditions for receiving the credit under the laws of the jurisdiction granting the credit; and

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a refundable tax credit that does not include any amount of tax creditable or refundable pursuant to a Qualified Imputation Tax or a Disqualified

Refundable Imputation Tax;

“Real Estate Investment Vehicle” means an Entity the taxation of which achieves a single level of taxation either in its hands or the hands of its interest holders with at most one year of deferral, provided that the person holds predominantly immovable property and is itself widely held;

“Reporting Financial Year” means the Financial Year that is the subject of the information return or the Top-up Tax return;

“Short-term Portfolio Shareholding” means a Portfolio

Shareholding that has been economically held by the

Constituent Entity that receives or accrues the dividends or other distributions for less than one year at the date of the distribution;

“Stateless Constituent Entity” means a Constituent Entity described in paragraphs 157(10)(b) and (11)(d);

“Substance-based Income Exclusion” means the jurisdictional payroll carve-out and the tangible asset carve-out for each

Constituent Entity as determined under section 180;

“Tax” means a compulsory unrequited payment to General

Government;

“Tax Treaty” means an agreement for the avoidance of double taxation with respect to taxes on income and on capital;

“Top-up Tax return” means a return in the prescribed form as provided under section 202;

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“Total Deferred Tax Adjustment Amount” means an amount as determined under subsection 171(1);

“Ultimate Parent Entity” means either—

an Entity that—

owns directly or indirectly a Controlling

Interest in any other Entity; and

the Main Entity of a Group that is located in one jurisdiction and has one or more Permanent

Establishments located in other jurisdictions provided that the Entity is not a part of another Group;

“Ultimate Parent Entity Jurisdiction” means the jurisdiction where the Ultimate Parent Entity is located.

An Entity is a Flow-through Entity to the extent it is fiscally transparent with respect to its income, expenditure, profit or loss in the jurisdiction where it was created unless it is tax resident and subject to a Covered Tax on its income or profit in another jurisdiction.

A Flow-through Entity is a Tax Transparent Entity with respect to its income, expenditure, profit or loss to the extent that it is fiscally transparent in the jurisdiction in which its owner is located.

A Flow-through Entity is a Reverse Hybrid Entity with respect to its income, expenditure, profit or loss to the extent that it is not fiscally transparent in the jurisdiction in which the owner is located.

An Entity is treated as fiscally transparent under the laws of a jurisdiction, if that jurisdiction treats the income, expenditure, profit or loss of that Entity as if it were derived or incurred by the direct owner of that Entity in proportion to its interest in that Entity.

Act 851

An Ownership Interest in an Entity or a Permanent

Establishment that is a Constituent Entity shall be treated as held through a Tax Transparent Structure if that Ownership

Interest is held indirectly through a chain of Tax Transparent

Entities.

A Constituent Entity that is not a tax resident and not subject to a Covered Tax or a Qualified Domestic Top-up

Tax based on its place of management, place of creation, or similar criteria shall be treated as a Flow-through Entity and a Tax Transparent Entity in respect of its income, expenditure, profit or loss to the extent that—

An Entity that is treated as a separate taxable person for income tax purposes in the jurisdiction where it is located is a Hybrid Entity with respect to its income, expenditure, profit or loss to the extent that it is fiscally transparent in the jurisdiction in which its owner is located.

The location of an Entity that is not a Flow-through

Entity is determined in the following manner:

The location of an Entity that is a Flow-through

Entity is determined in the following manner:

The location of a Permanent Establishment is determined in the following manner:

Where by reason of subsection (9), a Constituent

Entity is located in more than one jurisdiction, then its status for the purposes of this Part shall be determined in the following manner:

Where, under subsection (12), a Constituent Entity that is located in more than one jurisdiction is a Parent Entity located in a jurisdiction where it is not subject to a Qualified

Income Inclusion Rule, then the other jurisdiction can require such Entity to apply its Qualified Income Inclusion Rule unless it is restricted by an applicable Tax Treaty in force.

Where an Entity has changed its location during the

Financial Year, it shall be located in the jurisdiction where it was located at the beginning of that year.

Finance (No. 2)