Article 53 - Joint Ventures (JVs)

A JV means an Entity whose financial results are reported under the equity method in the CFS of the UPE provided that the UPE holds directly or indirectly at least 50% of its Ownership Interests. The term “JV” does not include any of the following Entities:

1. A UPE of an MNE Group that is subject to the GloBE Rules;

2. An excluded Entity as defined in Article 5 of these ERs.

3. An Entity in which the MNE Group holds a direct Ownership Interest through an excluded Entity referred to in Article 5 of these ERs, and which satisfies any of the following conditions:

   1. Operates exclusively or almost exclusively to hold assets or invest funds for the benefit of its investors.

   2. Carries out activities that are ancillary to those carried out by the Excluded Entity.

   3. Substantially all of its income is excluded from the computation of GloBE Income or Loss in accordance with Articles 12 and 12^[G3] of these ERs.

4. An Entity owned exclusively by an MNE Group consisting solely of excluded Entities.

5. A JV Subsidiary.

The provisions of Chapters Three through Eight^[G4] of these ERs apply to the JV and its subsidiaries for each Tax Period for the purpose of calculating the Tax (Top-Up Tax) for the JV and its subsidiaries, as if those ventures were CEs in a separate MNE group, and as if the JV is the UPE of that group. Accordingly, the ETR for the JVs and their subsidiaries must be calculated separately.