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On 15 January 2025, the OECD Inclusive Framework on BEPS released a series of documents (running to approximately 330 pages) on the application of the Global Anti-Base Erosion (GloBE) Rules. The aim of the GloBE rules is to ensure large multinational enterprises pay a minimum level of tax on the income arising in each of the jurisdictions where they operate which is achieved by way of a top-up tax on profits arising in a jurisdiction whenever the effective tax rate, determined on a jurisdictional basis, is below the 15 percent minimum rate.

The primary focus of the latest releases from the OECD was compliance and reporting obligations but there was also some limited additional Administrative Guidance that amends certain aspects of the Commentary to the GloBE Model Rules. In summary, the following materials were published:

• Ìý¾±²Ô³¦±ô³Ü»å¾±²Ô²µÌý, covering the rules that should be relied upon to complete the GIR;
•  which will provide a framework for jurisdictions that are signatories to the Convention on Mutual Administrative Assistance in Tax Matters to automatically exchange the GIR;

• , which has been designed to facilitate the exchanges of GIR information between tax administrations but can also be used for domestic GIR filings where permitted by tax administrations; 
•  listing the jurisdictions that have Inclusion Rules (QIIRs) or Qualified Domestic Minimum Top-up Taxes (QDMTT) that apply for financial years beginning in 2024; and
• , outlining both extensions of the limitation of the use of deferred tax assets under the transitional rules, especially to counter certain government domestic tax measures (including Swiss and Bermudian) aimed at reducing the impact of Pillar Two, plus comments on what government incentives may be treated as ‘Related Benefitsâ€� and as a reduction of Covered Tax.

ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø International has prepared two pieces of commentary providing more detail and observations on the documents released. The first piece of commentary covers the first four bullet points above and the second focuses on the Admin guidance mentioned in the final bullet above.

For further information please contact:

• Kashif Javed
• Damon Lambert