base erosion percentage
(4) Base erosion percentage For purposes of paragraph (1)(B)— (A) In general The term “base erosion percentage” means, for any taxable year, the percentage determined by dividing— (i) the aggregate amount of base erosion tax benefits of the taxpayer for the taxable year, by (ii) the sum of— (I) the aggregate amount of the deductions (including deductions described in clauses (i) and (ii) of paragraph (2)(A)) allowable to the taxpayer under this chapter for the taxable year, plus (II) the base erosion tax benefits described in clauses (iii) and (iv) of paragraph (2)(A) allowable to the taxpayer for the taxable year. (B) Certain items not taken into account The amount under subparagraph (A)(ii) shall be determined by not taking into account— (i) any deduction allowed under section 172 , 245A , or 250 for the taxable year, (ii) any deduction for amounts paid or accrued for services to which the exception under subsection (d)(5) applies, and (iii) any deduction for qualified derivative payments which are not treated as a base erosion payment by reason of subsection (h).