Article 40 - Joint Venture Exclusions

For the purpose of applying the provisions of Paragraph A of Article 11 of the Law, all of the following Entities shall not be considered as Joint Ventures:

1. An Ultimate Parent Entity of a Multinational Enterprise Group that meets the Revenue Test.

2. An Excluded Entity.

3. An Entity whose Ownership Interests are held directly through an Excluded Entity, and which is any of the following:

   1. An Entity which operates exclusively or almost exclusively to hold assets or invest funds for the benefit of its investors.

   2. An Entity which carries out activities that are ancillary to those carried out by the Excluded Entity.

   3. An Entity which has its income excluded from the computation of Constituent Entity Income or Loss in accordance with Clauses 2 and 3 of Paragraph A of Article 12 of these Regulations.

4. An Entity whose Ownership Interests are held by an Entity of a Multinational Enterprise Group that meets the Revenue Test which is composed exclusively of Excluded Entities.

5. A Joint Venture Subsidiary.