On December 18, 2023, only 14 days before the global minimum tax will enter into force in several jurisdictions, the OECD released further technical guidance to assist governments with implementation of the global minimum tax under Pillar Two.

The document released on December 18, 2023 sets out the third set of Administrative Guidance released by the Inclusive Framework, following the first and second sets of Administrative Guidance that were published in February 2023 and July 2023, respectively. As the GloBE Rules take effect in 2024, this third set of Administrative Guidance includes further clarifications on a number of key areas that will help MNE Groups transition into the GloBE Rules, such as the application of the Transitional CbCR Safe Harbour, the definition of revenues for purposes of determining whether an MNE Group is within scope of the GloBE Rules, and transitional relief to file the GloBE Information Return and notifications for in-scope MNE Groups that have short Reporting Fiscal Years. This package also includes guidance for applying the GloBE Rules in situations where there are mismatches between Fiscal Years or financial and tax years of Constituent Entities, guidance on allocating taxes arising in a Blended CFC Tax Regime when some Constituent Entities do not compute their ETR under the GloBE Rules, and the Simplified Calculations Safe Harbour for Non-material Constituent Entities. The Administrative Guidance will be incorporated into a revised version of the Commentary that will be released in 2024 (and replace the original version of the Commentary issued in March 2022).

More in particular the matters discussed in the technical guidance that was released on December 18, 2023 are:

  • Purchase price accounting adjustments in Qualified Financial Statements
    • Introduction
    • Issue to be considered
    • Guidance
  • Further Guidance on the Transitional CbCR Safe Harbour
    • Introduction
    • Tested Jurisdictions
    • Qualified Financial Statements
    • Simplified ETR computation
    • Routine Profits Test
    • Treatment of hybrid arbitrage arrangements under the Transitional CbCR Safe Harbour
  • Administrative Guidance on application of GloBE Rules
    • Consolidated revenue threshold
    • Mismatch between Fiscal Years of UPE and another Constituent Entity
    • Mismatch between Fiscal Year and Tax Year of Constituent Entity
  • Further Administrative Guidance on the allocation of Blended CFC Taxes
    • Introduction
    • Issues to be considered
    • Guidance
  • Transitional Filing Deadlines for MNE Groups with Short Reporting Fiscal Years
    • Introduction
    • Issues to be considered
    • Guidance
  • Simplified Calculation Safe Harbour for Non-Material Constituent Entities
    • Introduction
    • Definition of NMCE
    • Simplified Income, Revenue and Tax calculations for NMCEs
    • Application of the Simplified Calculations for NMCEs as part of the Simplified Calculations Safe Harbour
    • NMCE Simplified Calculations do not undermine the integrity of GloBE Rules
    • Guidance


The technical guidance as released by the OECD on December 18, 20923 can be found here.



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