Article 29 - Additional Tier One Capital and Restricted Tier One Capital

Amounts recognized as a decrease to the equity of a CE attributable to distributions paid or payable in respect of Additional Tier One Capital or Restricted Tier One Capital issued by that Entity shall be treated as an expense when calculating the GloBE income or loss for that Entity.

Amounts recognized as increases in the equity of the CE attributable to distributions received or receivable in respect of Additional Tier One Capital or Restricted Tier One Capital held by the CE are treated as income when calculating the GloBE income or loss for that Entity.

Additional Tier One Capital refers to any instrument issued by a CE under regulatory prudential requirements applicable to the banking sector, which is convertible into equity or written down upon the occurrence of a predefined trigger event, and has other features designed to help absorb losses during a financial crisis.

Restricted Tier 1 Capital refers to any financial instrument issued by a CE under prudential regulatory requirements applicable to the insurance sector, convertible into equity or written off upon the occurrence of a prespecified trigger event and characterized by features intended to aid loss absorbency during a financial crisis.