Article 4 - Excluded Entities

Without prejudice to the provisions of Paragraph C of this Article, the provisions of this Law shall not apply to any of the following Excluded Entities:

1. Government bodies.

2. International organizations.

3. Non-profit organizations.

4. Pension funds.

5. An investment fund that is an Ultimate Parent Entity.

6. A real estate investment vehicle that is an Ultimate Parent Entity.

7. Except for a pension service entity, an Entity where at least 95% of the value of the Entity is directly or indirectly owned by one or more Excluded Entities referred to in Clauses 1, 2, 3, 4, 5, and 6 of this Paragraph, whether directly or indirectly, provided that the Entity operates exclusively or almost exclusively to own assets or invest funds on behalf of Excluded Entities and it engages exclusively in activities ancillary to those performed by Excluded Entities.

8. Except for a pension service entity, an Entity where at least 85% of the value of the Entity is directly or indirectly owned by one or more Entities referred to in Clauses 1, 2, 3, 4, 5, and 6 of this Paragraph, whether directly or indirectly, provided that most of the Entity's income is primarily derived from gains or losses on shares or equity interests excluded from the computation of Constituent Entity Income or Loss.

Subject to the provisions of Paragraph A of this Article, a Filing Constituent Entity may make a Five-Year Election not to treat an Entity referred to in Clauses 7 and 8 of Paragraph A of this Article as an Excluded Entity.

The provisions of Articles 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, and 41 of this Law shall apply to Excluded Entities.

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