Article 11 - Joint Ventures

For the purposes of applying the provisions of this Law, a Joint Venture is an Entity whose financial results are reported using the equity method in the Consolidated Financial Statements of the Ultimate Parent Entity, provided that the Ultimate Parent Entity holds, either directly or indirectly, at least 50% of its ownership interests.

For the purposes of applying the provisions of this Law, a Joint Venture Subsidiary is an Entity whose assets, liabilities, income, expenses and cash flows are consolidated by a Joint Venture according to an Acceptable Accounting Standard or would have been consolidated had the Joint Venture been required to consolidate such items in accordance with an Acceptable Financial Accounting Standard.

Tax shall be computed for Joint Ventures and Joint Venture Subsidiaries as if they were Constituent Entities of a separate Multinational Enterprise Group and the Joint Venture was the Ultimate Parent Entity of that Group.

A Permanent Establishment whose Main Entity is a Joint Venture or Joint Venture Subsidiary shall be treated as a separate Joint Venture Subsidiary.

The Regulations shall prescribe rules, conditions and controls necessary to apply the provisions of this Article, including matters related to Entities that are not considered as Joint Ventures and other matters in a manner consistent with the Model Rules, administrative guidance and commentary issued by the Organisation for Economic Co-operation and Development (OECD).