Global Minimum Tax Act (S.C. 2024, c. 17, s. 81)

Marginal note:Joint venture top-up amount

• 35 (1) The top-up amount of a joint venture entity of a joint venture group, in respect of a particular MNE group, for a fiscal year is the amount that would be determined under subsection 30(1), 34(2) or 36(2), if

  • (a) all references in Divisions 2 and 3, Subdivisions A to E, G and H of this Division, Divisions 5 to 7 and Subdivision B of Division 8 to

    • (i) “MNE group” and “ultimate parent entity” were read as references to “joint venture group” and “joint venture”, respectively, and

    • (ii) “standard constituent entity” and “constituent entity” were read as references to “joint venture entity”;

  • (b) for greater certainty, the GloBE income or loss and adjusted covered taxes, as well as all the amounts that are to be computed under Subdivisions A to E, G and H of this Division and Divisions 5 to 7 in determining the top-up amount of the joint venture entity, were determined

    • (i) applying the rules in paragraph (a), and

    • (ii) based on the assumption that the joint venture group was a separate MNE group of which the joint venture was the ultimate parent entity and the joint venture entities were the only constituent entities;

  • (c) any amount of covered taxes that would be allocated from a constituent entity of the particular MNE group to the joint venture entity under any of subsections 24(4) to (6), if those subsections were applied without regard to paragraphs (a) and (b) of this subsection and the joint venture entity were a constituent entity of the particular MNE group, were allocated to the joint venture entity; and

  • (d) for the purposes of this subsection, any other modifications were made to Part 1 and Divisions 2 and 3, this Division, Divisions 5 to 7, Subdivision B of Division 8 and Subdivision A of Division 9 of this Part as the context requires.

• Marginal note:Allocation of joint venture top-up amount

  (2) For the purposes of Division 1 of this Part and Division 2 of Part 5,

  • (a) any joint venture entity in respect of a qualifying MNE group is deemed to be a constituent entity but not a relevant parent entity of the qualifying MNE group; and

  • (b) the GloBE income of a joint venture entity of a joint venture group that is located in a jurisdiction for a fiscal year, is

    • (i) if the net GloBE income of the joint venture group for the jurisdiction for the fiscal year, as computed in determining the top-up amount of the joint venture entity under subsection (1), is nil, the GloBE income that would be determined under subsection 15(5) if the net GloBE income, and the allocated adjustment top-up amount and excess negative tax expense top-up amount of the joint venture entity, were the amounts computed in determining the top-up amount of the joint venture entity under subsection (1), and

    • (ii) in any other case, the GloBE income computed in determining the joint venture entity’s top-up amount under subsection (1).

• Marginal note:Permanent establishment — deemed joint venture subsidiary

  (3) For the purposes of this section, if the main entity in respect of a permanent establishment is a joint venture, or a joint venture subsidiary of the joint venture, the permanent establishment is deemed to be a joint venture subsidiary of the joint venture separate and distinct from the main entity and any other permanent establishment of the main entity that is also deemed to be a joint venture subsidiary under this subsection.