Section 193 | Calculation of top-up amounts

Take the following steps to determine if a standard member of a multinational group (“the member in question”) has a top-up amount for an accounting period and, if it does, the extent of it—

Step 1Determine, under section 194, the total top-up amount for the accounting period for the territory the member in question is located in.

Step 2If the total top-up amount for that territory is nil, the member in question does not have a top-up amount. Otherwise, proceed to Step 3.

Step 3Determine the adjusted profits of the member in question for the period (in accordance with Chapter 4).

Step 4If the member has not made a profit for the period (as determined by reference to its adjusted profits), the member in question does not have a top-up amount. Otherwise, proceed to Step 5.

Step 5If there are no other standard members of the multinational group located in the same territory as the member in question, the member’s top-up amount is equal to the total top-up amount for that territory for the period. Otherwise, proceed to Step 6.

Step 6Determine (in accordance with Chapter 4) the adjusted profits for the period of all of the other standard members of the group that are located in same territory as the member in question.

Step 7Add together the adjusted profits of all standard members of the group in that territory that have profits (including those of the member in question).

Step 8Divide the member in question’s adjusted profits by the result of Step 7.

Step 9The member’s top-up amount is the result of multiplying the total top-up amount for the territory by the result of Step 8.