Part 3

Multinational top-up tax
Chapter 9A

Untaxed amounts

How to determine number of employees and tangible fixed assets values

Number of employees
229G
1
For the purposes of this Chapter, the number of employees of a qualifying member of a multinational group in an accounting period is the full-time equivalent employee number for that member for that period.
2
To determine the full-time equivalent employee number for a member of a multinational group for an accounting period take the following steps—
- Step 1
Determine the number of full-time employees of that member that were full-time employees for the whole of that period.
- Step 2
Determine, for each employee of that member for that period who is not a full-time employee for the whole of that period (whether they were part-time employees or were not employed for the whole of the period), such fraction as is just and reasonable.
- Step 3
Add together the number determined under Step 1 and the fractions determined under Step 2.
If the member was a member of the group throughout the whole of the period, the result of this Step is the full-time equivalent employee number.
- Step 4
Where the member was not a member of the group for the whole period, make such adjustments to the result of Step 3 as is just and reasonable to arrive at a full-time equivalent employee number that reflects the number of employees of the member in the period for which it was a member of the group.
For the purpose of this Step, ignore section 208(2) (members joining or leaving group in an accounting period treated as members for the whole of the period).
3
For the purposes of this section “
employee
”, in relation to a member of a multinational group, means a person whose employment costs are met by that member (whether or not the person’s activities are carried on in the territory of the member) as recorded in appropriate financial statements of the member and who—
a
is regarded as an employee under the law of the territory in which the member is located, or
b
participates in the ordinary operating activities of the member of the group (including on a part-time basis).
4
For the purposes of
subsection (3)
financial statements are “appropriate” only if the basis on which they are prepared is consistent for all members of the group (wherever located).
5
For the purposes of section
229D
(but not for the purposes of section
229E
), where a member of a multinational group is a flow-through entity, employees of the entity—
a
are to be treated as employees of members of the group that are not flow-through entities that are located in the territory in which the flow-through entity was created, or
b
where there are no such members in that territory, are ignored for the purposes of this Chapter.
6
Subsection (5)
does not apply to employees of a flow-through entity that are regarded for the purposes of this section as employees of a permanent establishment of the entity.
7
Where a permanent establishment does not prepare separate financial accounts, the reference in
subsection (3)
to employment costs recorded in financial statements is to the employment costs that would have been so recorded had such statements been prepared (and those costs are to be excluded from the financial statements of the main entity for the purposes of applying this section).

Value of tangible fixed assets
229H
1
To determine the value of tangible fixed assets of a qualifying member of a multinational group for an accounting period—
a
add together—
i
the sum of the values of each tangible fixed asset held by the member at the start of the period, as those values are recorded in the member’s financial statements, and
ii
the sum of the values of each tangible fixed asset held by the member at the end of the period, as those values are recorded in the member’s financial statements, and
b
divide the result of
paragraph (a)
by 2.
2
For the purposes of
subsection (1)
financial statements are “appropriate” only if the basis on which they are prepared is consistent for all members of the group (wherever located).
3
In each case the value of a tangible fixed asset is to include accumulated depreciation, depletion or impairment.
4
If the member is not a member of the group at the start of the period, or at the end of the period, the sum of the values of its tangible fixed assets at that time is to be treated as nil.
5
For the purpose of
subsection (4)
, ignore section 208(2) (members joining or leaving group in an accounting period treated as members for the whole of the period).
6
Where a permanent establishment does not prepare separate financial accounts, the values to be used are those that would have been recorded in those accounts had they been prepared (and those values are to be excluded from the financial statements of the main entity for the purposes of applying this section).
7
For the purposes of section
229D
(but not for the purposes of section
229E
), tangible fixed assets held by a member of the group that is a flow-through entity—
a
are to be treated as held by members of the group that are not flow-through entities that are located in the territory in which the flow-through entity was created, or
b
where there are no such members in that territory, are to be ignored for the purposes of this Chapter.
8
Subsection (7)
does not apply to assets of a flow-through entity that are held by a permanent establishment of the entity.
9
For the purposes of this Chapter “
tangible fixed assets
” means all tangible assets wherever located, other than cash or cash equivalents or financial assets.
Pt. 3 Ch. 9A inserted (in relation to accounting periods commencing on or after 31.12.2024) by Finance Act 2025 (c. 8), Sch. 4 paras. 5, 10