1.  Member States may elect to apply a qualified domestic top-up tax.

If a Member State where constituent entities of an MNE Group are located elects to apply a qualified domestic top-up tax, any low-taxed constituent entities of the MNE Group in that Member State shall be subject to that domestic top-up tax for the fiscal year.

2.  Where a parent entity of an MNE Group is located in a Member State, and its directly or indirectly held low-taxed constituent entities located in another Member State or in a third country jurisdiction are subject to a qualified domestic top-up tax for the fiscal year in that jurisdiction, the amount of any top-up tax computed in accordance with Article 26 due by the parent entity pursuant to Articles 5, 6 and 7 shall be reduced, up to zero, by the amount of top-up tax due by those constituent entities.

3.  Where the amount of qualified domestic top-up tax taken into consideration in the computation of the jurisdictional top-up tax in accordance with Article 26 for a fiscal year has not been fully paid within the three following fiscal years, the amount of domestic top-up tax that was not paid shall be added to the jurisdictional top-up tax computed in accordance with Article 26(3).

4.  Member States that elect to apply a domestic top-up tax shall notify the Commission of this election within four months following the adoption of their national laws, regulations and administrative provisions necessary to comply with this Directive.

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