Article 47 - Additional Current Tax (Top-up Tax) Amount

Additional Current Top-Up Tax means the amount of tax resulting from an adjustment in the Covered Taxes or in the Net GloBE Income or Loss of a CE due to a recalculation of the ETR for a prior Tax Period or pursuant to paragraph 2 of this Article.

Where it is required or permitted to recalculate the ETR and tax for a prior Tax Period in accordance with the provisions related to ETR adjustments, the following provisions shall apply:

1. The ETR and the Tax (Top-Up Tax) for the prior Tax Period shall be recalculated in accordance with this Article and Articles 41, 42, and 43 of these ERs, taking into account any amendments to the Adjusted Covered Taxes and to the Net GloBE Income or Loss as specified in ETR adjustment articles.

2. Any increase in Tax (Top-Up Tax) resulting from the recalculation shall be treated as Additional Current Top-Up Tax under paragraph 4 of Article 42 of these ERs and shall be recognized in the current Tax Period.

If an Additional Current Top-Up Tax arises under the application of paragraph 3 of Article 34 of these ERs, the Net GloBE Income for each CE located in the State shall equal the quotient of the amount of Additional Current Top-Up Tax allocated to that Entity divided by the Minimum Tax Rate.

The Additional Current Top-Up Tax amount shall be allocated only to a CE that reports an Adjusted Covered Taxes amount less than zero and less than the product of the CE’s Net GloBE Income or Loss multiplied by the Minimum Tax Rate. Such allocation shall be done proportionally using the following formula: