Clause 22

In this Part, the top‑up amount of a constituent entity that is a stateless entity is determined by applying sections 16, 17, 18 and 21 (and regulations made for the purposes of those sections) to the constituent entity as if it were the only constituent entity of the MNE group located in a jurisdiction, and for this purpose references to a constituent entity (not being a special entity) in those sections are references to the stateless entity.

For the purpose of applying section 18 under subsection (1), where a stateless entity has any payroll carve‑out amount or tangible asset carve‑out amount (as defined in section 18) for a financial year that is not allocated to another entity, the substance‑based income exclusion for the stateless entity is treated as nil.