According to the election of the DCE, the Tax (Top-Up Tax) on a CE located in the State shall be zero for a Tax Period if the following conditions are met during that period:
The average total revenue in the State is less than EUR 10 million (or its equivalent in Kuwaiti Dinar).
The average total GloBE income or loss in the State is less than EUR 1 million (or its equivalent in Kuwaiti Dinar) or is a loss.
For the purposes of the above paragraph, the following shall apply:
When the DCE makes the election referred to in the first paragraph of this Article, the calculation of the ETR shall not be required.
If the Tax Period for the CE is less than 12 months, all amounts mentioned in the first paragraph of this Article shall be proportionally adjusted using the following formula:
Number of Months in a Tax Period12 X Each amount mentioned in clause (1) & (2) of the first paragraph of this Article shall be considered separately
The election mentioned in the first paragraph of this Article is considered a one Tax Period election.
The average revenues (or GloBE income or loss) in the State means the average of revenues (or GloBE income or loss) in the State for the current Tax Period and the two preceding Tax Periods.
If there are no CEs in the State with revenues or GloBE income or loss during the first or second Tax Periods preceding the current Tax Period, those periods shall be excluded from the calculation of the average revenues and average GloBE income or loss, for the purposes of determining whether the De Minimis Exclusion applies.
For the purposes of the preceding paragraph, the following provisions shall apply:
Revenues in the State for a Tax Period are the total revenues of all CEs located in the State during that Tax Period, taking into account adjustments calculated in accordance with Chapter 3.
GloBE income or loss in the State for a Tax Period is defined as the Net GloBE Income in the State, if any, or the Net GloBE Loss in the State.
In the event of amendments after the submission of the Tax Return, the following provisions shall apply: