Article 15 - Exclusion for Initial Phase of International Activity

The Tax of Constituent Entities located in the Kingdom shall be reduced to zero where the Multinational Enterprise Group satisfies all of the following conditions:

1. Has Constituent Entities located in no more than six jurisdictions.

2. The sum of the net book value of tangible assets of all Constituent Entities located in all jurisdictions, other than the Reference Jurisdiction, does not exceed fifty million Euro (EUR 50 million).

3. None of the ownership interests in the Constituent Entities located in the Kingdom are held by a parent entity which applies the Income Inclusion Rule (IIR) as set out in the Model Rules, administrative guidance and commentary issued by the Organisation for Economic Co-operation and Development (OECD).

For the purposes of Clause 2 of Paragraph A of this Article, the Reference Jurisdiction is the jurisdiction in which the Multinational Enterprise Group has the highest value of tangible assets when the global minimum tax rules first apply to that Group.

Paragraph A of this Article shall not apply for any Fiscal Year that starts later than five years after the first day of the first Fiscal Year when the Multinational Enterprise Group entered in scope of the Model Rules, administrative guidance and commentary issued by the Organisation for Economic Co-operation and Development (OECD).

The Regulations shall prescribe the rules, conditions and controls in a manner consistent with the Model Rules, administrative guidance and commentary issued by the Organisation for Economic Co-operation and Development (OECD).