S.L. 123.212 Art. 13Assessment of equivalence. 26 [S.L.

The legal framework implemented in the domestic law of a third-country jurisdiction shall be considered to be equivalent to a qualified IIR set out in Chapter II of the European Union Global Minimum Tax Directive, and shall not be treated as a controlled foreign company tax regime, if it fulfils the following conditions: TAXATION FOR MULTINATIONAL ENTERPRISE GROUPS 123.212 AND LARGE-SCALE DOMESTIC GROUPS

(a) it enforces a set of rules in accordance with which the parent entity of an MNE group shall compute and pay its allocable share of top-up tax in respect of the low-taxed constituent entities of the MNE group;

(b) it establishes a minimum effective tax rate of at least fifteen percent (15%) below which a constituent entity is considered to be low-taxed;

(c) for the purpose of computing the minimum effective tax rate, it only allows the blending of income of entities located within the same jurisdiction;

(d) for the purpose of computing a top-up tax under the equivalent qualified IIR, it provides for relief for any top-up tax that was paid in a Member State in application of the qualified IIR and for any qualified domestic top-up tax set out in the European Union Global Minimum Tax Directive; and

(e) is included in the list of third-country jurisdictions that have implemented a legal framework in their domestic law which is considered to be equivalent to a qualified IIR in conformity with the conditions laid down in paragraphs (a) to (d), such list being referred to in Article 52(2) of the European Union Global Minimum Tax Directive.