Global Anti-Base Erosion Model Rules (Pillar Two)
A key part of the OECD/G20 BEPS Project is addressing the tax challenges arising from the digitalisation of the economy. In October 2021, over 135 jurisdictions joined a ground breaking plan to update key elements of the international tax system which is no longer fit for purpose in a globalised and digitalised economy. The Global Anti-Base Erosion Rules (GloBE) are a key component of this plan and ensure large multinational enterprise pay a minimum level of tax on the income arising in each of the jurisdictions where they operate.
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Model GloBE Rules
Published 20 December 2021
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The GloBE Rules provide for a co-ordinated system of taxation that imposes a top-up tax on profits arising in a jurisdiction whenever the effective tax rate, determined on a jurisdictional basis, is below the minimum rate. This publication delineates the scope and sets out the operative provisions and definitions of the GloBE Rules. These rules are intended to be implemented as part of a common approach and to be brought into domestic legislation as from 2022.
Commentary to the GloBE Rules
Consolidated Commentary to the Global Anti-Base Erosion Model Rules (2023)
Published 25 April 2024
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This Consolidated Commentary incorporates Agreed Administrative Guidance that has been released by the Inclusive Framework since March 2022 up until December 2023.
Commentary to the Global Anti-Base Erosion Model Rules (Pillar Two), First Edition
Administrative Guidance
June 2024
Published 17 June 2024
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- Français (traduction en cours)
This document sets out the fourth set of Administrative Guidance items released by the Inclusive Framework, following the first, second and third sets of Administrative Guidance items that were published in February 2023, July 2023 and December 2023 respectively. This fourth set of guidance supplements the Commentary to the Global Anti-Base Erosion Model Rules in order to clarify their application, including guidance on application of the recapture rule applicable to deferred tax liabilities (DTL), cross-border allocation of current and deferred taxes, allocation of profits and taxes in certain structures involving Flow-through Entities, and the treatment of securitisation vehicles.
December 2023
Published 18 December 2023
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This document sets out the third set of Administrative Guidance items released by the Inclusive Framework, following the first and second sets of Administrative Guidance items that were published in February 2023 and July 2023 respectively. This third set of guidance supplements the Commentary to the Global Anti-Base Erosion Model Rules in order to clarify their application, including guidance on the application of the Transitional Country-by-Country Reporting Safe Harbour and a mechanism for allocating taxes arising in a Blended Controlled Foreign Corporation (CFC) Tax Regime when some of the jurisdictions the MNE operates in are eligible for the safe harbour.
July 2023
Published 17 July 2023
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This document sets out the second set of Administrative Guidance items released by the Inclusive Framework, following the first set of Administrative Guidance items that were published in February 2023. This second set includes guidance on currency conversion rules when performing GloBE calculations, on tax credits, and on the application of the Substance-based Income Exclusion (SBIE). It also includes further guidance on the design of Qualified Domestic Minimum Top-up Taxes (QDMTT) as well as two new safe harbours:
- A permanent safe harbour for jurisdictions that introduce a Qualified Domestic Minimum Top-up Tax (QDMTT), which will make compliance and administration easier for MNEs and tax administrations.
- A transitional safe harbour, which provides the UPE Jurisdiction with relief from the application of the UTPR for fiscal years commencing on or before the end of 2025
February 2023
Published 2 February 2023
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- English
- Italiano (pubblicato il 28 febbraio 2024)
- Français (traduction en cours; lire le résumé)
- Deutsch (veröffentlicht am 14. Juni 2024)
The items of Administrative Guidance set out in this document address a wide range of issues that Inclusive Framework members have identified as the issues most in need of immediate clarification and simplification for stakeholders. In particular, this document addresses issues related to the scope, the income and taxes calculation as well as issues related to insurance companies. It also provides guidance on the transition rules and the design of Qualified Domestic Minimum Top-up Taxes (QDMTT).
GloBE Information Return
Published 17 July 2023
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The GloBE Information Return sets out a standardised information return to facilitate compliance with and administration of the GloBE Rules. It contains the information a tax administration needs to perform an appropriate risk assessment and to evaluate the correctness of a Constituent Entity’s Top-up Tax liability. This document has been developed following a public consultation that took place in March 2023. In response to feedback, the GIR incorporates transitional simplified reporting requirements that allow MNEs to report their GloBE calculations at a jurisdictional level. The GIR will be subject to coordinated filing and exchange mechanisms that allow MNEs to report their GloBE calculations on a single return, where the more detailed information is made available to implementing jurisdictions where a Top-up Tax liability may arise.
Safe harbours and penalty relief
Published 20 December 2022
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Building on the input from a public consultation in April 2022, the Inclusive Framework has agreed on the design of a transitional safe harbour and a regulatory framework for the development of a potential permanent safe harbour as well as a common understanding for a transitional penalty relief regime.
Illustrative examples
Published 25 April 2024
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These examples illustrate the application of the Model GloBE Rules to certain fact patterns. Originally published on 14 March 2022, this document was revised on 25 April 2024 to include the illustrative examples that were developed as part of the various pieces of Administrative Guidance approved by the Inclusive Framework before the end of December 2023.
Implementation Handbook
Published 11 October 2023
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This Implementation Handbook on the minimum tax provides an overview of the key provisions of the rules and the considerations to be taken into account by tax policy and administration officials and other stakeholders in assessing their implementation options. This handbook was prepared under the Indian Presidency of the G20 and is not intended to modify the application or interpretation of any aspect of the Model Rules, the Commentary or the Agreed Administrative Guidance.
Background material
- Summary: Pillar Two Model Rules in a nutshell - Updated July 2023
- Fact sheets
- Frequently asked questions - Updated June 2024
- Questions and Answers on the Qualified Status under the Global Minimum Tax
News
- 10/07/2024 - OECD invites comments on a draft of the User Guide for the GloBE Information Return XML Schema
- 17/06/2024 - OECD/G20 Inclusive Framework on BEPS taking further steps on the implementation of the Two-Pillar Solution (Also available: Français)
- 18/12/2023 - OECD/G20 Inclusive Framework releases new information on key aspects of the Two-Pillar Solution
- 17/07/2023 - OECD reports strong progress to G20 on international tax reforms
- 02/02/2023 - International tax reform: OECD releases technical guidance for implementation of the global minimum tax (Also available in: Français)
- 20/12/2022 - Further progress on two-pillar solution: OECD releases consultation document on the withdrawal of digital service taxes and other relevant similar measures under Pillar One and an implementation package for Pillar Two (Also available in: Français)
- 14/03/2022 - OECD releases detailed technical guidance on the Pillar Two model rules for 15% global minimum tax (Also available: Français)
- 20/12/2021 - OECD releases Pillar Two model rules for domestic implementation of 15% global minimum tax (Also available: Français | Deutsch | Español)
Further information
- Contact us via e-mail: CTP.Contact@oecd.org
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