1.  Where, pursuant to Articles 15(7), 21(7), 24(1), 24(4) and 38(5), an adjustment to covered taxes or qualifying income or loss results in the recalculation of the effective tax rate and top-up tax of the MNE group for a prior fiscal year, the effective tax rate and top-up tax shall be recomputed in accordance with the rules set out in Articles 25 to 27. Any amount of incremental top-up tax arising from such recalculation shall be treated as an additional top-up tax for the purpose of Article 25(3) for the fiscal year during which the recalculation is made.

2.  Where the recalculation made under paragraph 1 results in an additional top-up tax, and there is a net qualifying loss for the jurisdiction, the qualifying income of each constituent entity located in the jurisdiction shall be an amount equal to the top-up tax allocated to such constituent entities pursuant to Articles 26(5) and 26(6) divided by the minimum tax rate.

3.  Where, pursuant to Article 20(5), additional top-up tax is due, the qualifying income of each constituent entity located in the jurisdiction shall be an amount equal to the top-up tax allocated to such constituent entity divided by the minimum tax rate. The allocation shall be made pro-rata, to each constituent entity, based on the following formula: (Qualifying income or loss x minimum tax rate)-adjusted covered taxes

The additional top-up tax shall only be allocated to constituent entities that record an amount of adjusted covered tax that is less than zero and less than the qualifying income or loss of such constituent entities multiplied by the minimum tax rate.

4.  Where a constituent entity is allocated additional top-up tax in accordance with this Article, it shall be treated as a low-taxed constituent entity for the purpose of Chapter II.

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