The disposal or acquisition of assets and liabilities shall be performed according to the following provisions:
The disposing CE must include any gains or losses resulting from the disposal when calculating the GloBE Income or Loss.
The acquiring CE must determine its GloBE Income or Loss based on the carrying value of the acquired assets and liabilities, as determined according to the accounting standard used for calculating the GloBE Income or Loss of the CE.
The provisions of the first paragraph of this Article do not apply if the disposal or acquisition of assets and liabilities forms part of a GloBE Reorganization, in which case the following must be adhered to:
The disposing CE must exclude any gains or losses from the disposal from the calculation of GloBE Income or Loss of the CE.
The acquiring CE must determine its GloBE income or loss after the acquisition based on the carrying value of the disposing Entity's assets and liabilities acquired at disposal.
If the disposal or acquisition of assets and liabilities forms part of a GloBE Reorganization, and the disposing CE has recognized a non-qualifying gain or loss, the provisions of the first and second paragraphs of this Article shall not apply. In this case, the following must be adhered to:
The disposing CE shall include the gain or loss resulting from the disposal for the purpose of calculating the GloBE income or loss of the CE, up to the amount of the non-qualifying gain or loss.
The acquiring CE must determine its GloBE income or loss after the acquisition based on the Carrying Value of the disposing Entity’s assets and liabilities acquired at disposal, which must be adjusted in accordance with local tax legislation to account for the non-qualifying gain or loss.
Based on the election of the DCE, a CE that is a member of an MNE group, that is permitted or required to adjust the tax base of assets and liabilities to fair value for tax purposes in the jurisdiction where the liability arises must adhere to the following: