| Status | Enacted Law |
| Law | On May 24, 2024, the Corporation Top-up Tax Act, 2024 was published in the Official Gazette. |
| Effective Date | Financial years beginning on or after January 1, 2024 |
| IIR | No |
| UTPR | No |
| QDMTT | Yes (2024) |
| Filing Deadlines | Unknown |
| Safe Harbours | Transitional CbCR Safe Harbour |
On 7 May 2024, the Senate passed the Corporation Top-up Tax Bill, 2024 . This was published in the Official Gazette on May 24, 2024.
OVERVIEW
On February 28, 2024, the Corporation Top-up Tax Bill, 2024 received its first reading in the House of Assembly. On 7 May 2024, it was passed by the Senate and it was published in the Official Gazette on May 24, 2024 (‘the Law’).
The Law does not include an income inclusion rule (IIR) or an under-taxed profits rule (UTPR).
It includes a domestic minimum top-up tax (DMTT), which is intended to be a Qualified Domestic Minimum Top-up Tax (‘QDMTT) for financial years beginning on or after January 1, 2024. As there is no IIR or UTPR, the entire Law applies just for the application of the DMTT.
Most aspects of the OECD Administrative Guidance are not reflected in the Law, aside from certain elements of the QDMTT design.
GLOBE APPLICATION
General
As from January 1, 2024, Barbados introduced a Qualified Domestic Minimum Top-up Tax (QDMTT) that is consistent with the GloBE Rules.
It applies to Barbadian subsidiaries or permanent establishments of in-scope Multinational Enterprises with an Ultimate Parent Entity in a jurisdiction that has introduced an Income Inclusion Rule or with constituent entities in jurisdictions with an Under Taxed Profit Rule. This means that a top up tax will be imposed on these entities to ensure that they are subject to an effective tax rate of 15%, as per the GloBE Rules.
Barbados stated that it would ensure the Domestic Minimum Top-up Tax meets the required standards to qualify for the Qualified Domestic Minimum Top-up Tax safe harbour.
It should be noted that under Section 5(4) of the Law, MNE groups whose Ultimate Parent Entity is in a jurisdiction which has not implemented an Income Inclusion Rule or whose Constituent Entities are not subject to an Income Inclusion Rule or an Undertaxed Profits Rule, will not be subject to the Barbadian DMTT.
As the DMTT only applies in 2024 to a Constituent Entity when the MNE Group is subject to the GloBE Rules in another jurisdiction, this is classed as a Conditional DMTT for Pillar 2 purposes (similar to the DMTT in the Bahamas). A Conditional DMTT for 2024 can only be classed as a QDMTT providing the DMTT will not be conditional in any other year.
In the January 2025 Central Record of Legislation with Transitional Qualified Status issued by the OECD, the Barbados DMTT is treated as qualified for GloBE purposes, as well as for the purposes of the QDMTT Safe Harbour.
As noted below, most aspects of the provisions of the OECD Administrative Guidance are not included in the Law.
Section 2(2) of the Law does include a general interpretative provisions that provides that the Law should be construed in a manner that generates outcomes that are consistent or functionally equivalent with the GloBE Model Rules, supplemented by the Pillar Two Commentary and any agreed administrative guidance on the interpretation or the GloBE Model Rules issued by the OECD.
Administrative Guidance
The Law redrafts the OECD Model Rules into domestic legislation, with adjustments for the DMTT/QDMTT design. As such, very few aspects of the OECD Administrative Guidance are included in the law (aside from as relates to the DMTT design, currency conversion rules and Safe Harbours).
The following are not included in the Law:
-Deemed consolidation test (Article 1.2)
-Consolidated deferred tax amounts (Article 1.3)
-Sovereign wealth funds and the definition of Ultimate Parent Entity (Article 1.4)
-Clarifying the definition of ‘Excluded Entity’ (Article 1.5)
-Meaning of “ancillary” for Non-Profit Organisations (Article 1.6)
-Forex hedge election (Article 2.2)
-Debt release election (Article 2.4)
-Accrued Pension Expenses (Article 2.5)
-Excess negative tax carry-forward guidance (Article 2.7)
-Substitute Loss carry-forwards (Article 2.8)
-Equity Gain or loss inclusion election (Article 2.9)
-Allocation of taxes arising under a Blended CFC Tax Regimes (Article 2.10)
-The extension of the taxable distribution method election to insurance investment entities (Article 3.1)
-Exclusion of Insurance Investment Entities from the definition of Intermediate Parent Entity and Partially-Owned Parent Entity (Article 3.2)
-Restricted Tier One Capital (Article 3.3)
-Liabilities related to Excluded Dividends and Excluded Equity Gain or Loss from securities held on behalf of policyholders (Article 3.4)
-Portfolio shareholding election (Article 3.5)
-Application of Tax transparency election to Mutual insurance companies (Article 3.6)
-MTTCs (Second Set of OECD Administrative Guidance)
-Currency Conversion rules (Second Set of OECD Administrative Guidance)
-Meaning of “ancillary” for Non-Profit Organisations (Second Set of OECD Administrative Guidance)
-Additional rules (such as the deemed 50% requirement where employees perform work outside the employer’s jurisdiction for the SBIE) (Second Set of OECD Administrative Guidance).
No aspects of the Third Set of OECD Administrative Guidance (issued in December 2023) are included in the Draft Law.
Safe Harbour and Penalty Relief Guidance
The Law provides for the application of the Transitional CbCR Safe Harbour, as provided in the OECD Safe Harbours and Penalty Relief Guidance.
The:
-Transitional UTPR Safe Harbour (not relevant as no UTPR in Barbados);
-QDMTT Safe Harbour (not relevant as Barbados only includes a DMTT);
-Simplified calculation for Non-Material Constituent Entities Safe Harbour.
are not included.
The amendments to the Transitional CbCR Safe Harbour included in the December 2023 OECD Administrative Guidance are not included in the Law.
ELECTIONS
Elections in the OECD Model Rules
The following elections included in the OECD Model Rules are provided in the Law:
-Stock-Based Compensation Election (Article 11 of the Law)
-Election to use the Realization Method (Article 14 of the Law)
-Election to Spread Capital Gains (Article 15 of the Law)
-Consolidation Election (Article 17 of the Law)
-Unclaimed Accrual Election (Article 25(13) of the Law)
-GloBE Loss Election (Article 26(1) of the Law)
-Prior Year Adjustment Election (Article 28(3) of the Law)
-De minimis Election (Article 33(1) of the Law)
-Substance-Based Income Exclusion Election (Article 31(1) of the Law)
-Taxable distribution Election (Article 43 of the Law)
-Tax transparency Election Article 42 of the Law)
The following elections are not included in the Law:
-Distribution Tax Regime Election
-Excluded Entity Election
Elections in the Administrative Guidance
Other elections included in the OECD Administrative Guidance are not included in the Law. This includes the:
-Excess Negative Tax Carry-Forward Election;
-Debt Release Election;
-Equity Investment Inclusion Election;
-Foreign Exchange Hedge Election;
-Portfolio Shareholding Election.
DEVIATIONS FROM THE OECD MODEL RULES/EU GLOBAL MINIMUM TAX DIRECTIVE
As Barbados is implementing a DMTT, it has increased flexibility on the application of the GloBE rules. As such, some aspects of the GloBE rules are not relevant given the domestic tax system in Barbados. The deemed distribution tax regime rules are not included and neither are the provisions for multi-parented MNE groups.
Similarly, the definition of covered taxed in Section 23 of the Law is simplified and does not, for instance, refer to taxes levied by reference to retained earnings and corporate equity (as this is not relevant under the Barbados domestic tax regime).
DOMESTIC MINIMUM TAX
General
The Law includes a domestic minimum tax (intended to be a QDMTT) for financial years beginning on or after January 1, 2024.
The DMTT calculation is based on the top-up tax calculated under the general GloBE rules.
QDMTT Design Features
The amount of top-up tax under the DMTT is subject to a specified calculation method which is based on the GloBE rules.
It expressly applies irrespective of the shareholdings in the group entities located in Barbados. This reflects the OECD Administrative Guidance that provides that Top-up Tax that is subject to the QDMTT is based on the whole amount of the jurisdictional Top-up Tax calculated, irrespective of the ownership interests held in the Constituent Entities located in the QDMTT jurisdiction by any Parent Entity of the MNE Group.
The domestic minimum tax is calculated:
• using the financial accounting standard of the ultimate parent entity, and,
• if that is not practicable, on the basis of an accepted or approved accounting standard, if:
o the constituent entity’s financial statements are prepared in accordance with that standard,
o the information contained in the financial statements is reliable; and
o permanent differences of more than EUR 1 million are conformed with the UPEs accounting standard.
Tax paid or incurred by a Constituent Entity-owner under a CFC Tax Regime that is pushed down to a domestic Constituent Entity in the GloBE Rules must be excluded, as provided in the OECD Administrative Guidance. Section 27(2) of the Law excludes CFC pushdown rules for the DMTT.
Section 27(2) also prevents the pushdown of tax to hybrids, PEs and for taxes on distributions (aside from Barbadian withholding tax on distributions).
The exclusion for MNEs in their initial phase of international activity does not need to be included in a DMTT, however, it can be included. The Second Set of OECD Administrative Guidance provides jurisdictions with three options regarding the temporary UTPR exclusion in their DMTT legislation.
Option one allows the jurisdiction not to adopt it.
Option two allows the jurisdiction to adopt it but limits it to cases where no Parent Entity is required to apply a Qualified Income Inclusion Rule with respect to Constituent Entities of an MNE Group located in the DMTT jurisdiction.
Option three allows the jurisdiction to adopt it without any limitations. (Note, if a jurisdiction opts for Option three, for the purposes of the QDMTT Safe Harbour the Switch-Over Rule would apply).
Section 56(1) of the Law implements Option two in Barbados.
Section 24(6) of the Law allocates the jurisdictional top-up tax to each constituent entity based on the general GloBE rules, using the following formula:
Top-up tax of a qualifying entity = jurisdictional top-up tax x qualifying income of the qualifying entity/aggregate qualifying income of all qualifying entities
Section 29(4) of the Law applies the DMTT to Stateless Entities (with a separate ETR calculation).
Registration
Section 45(1) of the Law provides that an in-scope entity is required to register with the tax authority within 12 months after the last day of the first fiscal year that it is a qualifying entity.
Filing
The DMTT Group is required to prepare and deliver to the tax authorities a DMTT return on or before the specified return date.
The DMTT Group may elect a qualifying entity to prepare and file a DMTT return on behalf of the relevant qualifying entities on or before the specified return date.
The specified return date is, however, not included in the Law.
Payment
The top-up tax payment deadline is the same as the filing deadline.
Penalties
Article 46 of the Law provides that where an entity fails to file the QDMTT return it is subject to a penalty of $1000 in addition to interest at the rate of one per cent. This is calculated for each month during which any part of that amount was not paid on the largest amount of the top-up tax and interest that was due and unpaid at any time in that month.
None
| Barbados | |||
|---|---|---|---|
| Effective Date: | Accounting periods beginning on or after January 1, 2024 | ||
| Section/Article | |||
| First Set of OECD Administrative Guidance | |||
| 1.1 | Rebasing monetary thresholds in the GloBE Rules | 8(3) | |
| 1.2 | Deemed consolidation test | 2 – Excludes the state | |
| 1.3 | Consolidated deferred tax amounts | ||
| 1.4 | Sovereign wealth funds and the definition of Ultimate Parent Entity | ||
| 1.5 | Clarifying the definition of ‘Excluded Entity’ | ||
| 1.6 | Meaning of ancillary for Non-Profit Organisations | ||
| 2.1 | Intra-group transactions accounted at cost | ||
| 2.2 | Excluded Equity Gains or Loss and hedges of investments in foreign operations | ||
| 2.3 | Excluded Dividends- Asymmetric treatment of dividends and distributions | ||
| 2.4 | Debt release Election | ||
| 2.5 | Accrued Pension Expenses | ||
| 2.6 | Covered Taxes on deemed distributions | ||
| 2.7 | Excess Negative Tax Carry-forward guidance | ||
| 2.8 | Substitute Loss carry forwards | ||
| 2.9 | Equity Gain or loss inclusion election | ||
| 2.9 | Qualified Ownership Interest/Flow through entity | ||
| 2.1 | Allocation of taxes arising under a Blended CFC Tax Regimes | ||
| 3.1 | Application of Taxable Distribution Method Election to Insurance Investment Entities | ||
| 3.2 | Exclusion of Insurance Investment Entities from the definition of Intermediate Parent Entity and Partially-Owned Parent Entity | ||
| 3.3 | Restricted Tier 1 Capital | ||
| 3.4 | Liabilities related to Excluded Dividends and Excluded Equity Gain or Loss from securities held on behalf of policyholders | ||
| 3.5 | Simplification for Short-term Portfolio Shareholdings | ||
| 3.6 | Application of Tax transparency election to Mutual insurance companies | ||
| 4.1 | Deferred tax assets with respect to tax credits under Article 9.1.1 | ||
| 4.2 | Applicability of Article 9.1.3 to transactions similar to asset transfers | ||
| 4.3 | Asset carrying value and deferred taxes under 9.1.3 | ||
| Second Set of OECD Administrative Guidance | |||
| 1 | Currency conversion rules | ||
| 2 | MTTCs | ||
| 3 | SBIE Rules | ||
| – Foreign rules | |||
| Stock-based compensation election | |||
| Leases | |||
| – Impairment losses inc in tangible asset value | |||
| 4.1 | QDMTT Safe Harbour | ||
| 4.2 | UTPR Safe Harbour | ||
| Third Set of OECD Administrative Guidance | |||
| 1 | Transitional CbCR – Purchase Accounting Adjustments (consistent reporting condition, goodwill impairment adjustment) | ||
| 2.2.1 | Transitional CbCR – JVs | ||
| 2.3.1 | Transitional CbCR – Same Financial Statements/Local Financial Statements for Statutory Reporting | ||
| 2.3.2 | Transitional CbCR – Using different accounting standards | ||
| 2.3.3 | Transitional CbCR – Adjustments to Qualified Financial Statements/Dividend Mismatches | ||
| 2.3.4 | Transitional CbCR – MNEs not required to file CbC Reports | ||
| 2.3.5 | Transitional CbCR – Qualified Financial Statements for PEs | ||
| 2.4.2 | Transitional CbCR – Treatment of Taxes on income of PEs, CFCs, and Hybrid Entities | ||
| 2.6 | Transitional CbCR – Treatment of hybrid arbitrage arrangements | ||
| 3.1 | Identifying Consolidated Revenue | ||
| 3.2 | Mismatch between Fiscal Years of the UPE and another Constituent Entity | ||
| 3.3 | Mismatch between Fiscal Year and Tax Year of Constituent Entity | ||
| 4.2.1 | Blended CFCs -multiple GloBE Jurisdictional ETRs | ||
| 4.2.2 | Blended CFCs – not required to calculate an ETR | ||
| 4.2.3 | Blended CFCs – income of non-GloBE Entities | ||
| 5.3 | 30 June 2026 Filing deadline | ||
| 6 | NMCE Simplified Calcs | ||
| Fourth Set of OECD Administrative Guidance | |||
| 1.2.1 | Aggregate DTL Category basis | ||
| 1.2.1 | Exclusion of certain types of GL accounts and separate tracking | ||
| 1.2.1 | Exclusion of GL accounts that generate standalone DTAs | ||
| 1.2.1 | Exclusion of swinging accounts and separate tracking | ||
| 1.2.2 | FIFO/LIFO Basis | ||
| 1.2.3 | Aggregation of Short-term DTLs | ||
| 1.2.2 | Reversal of DTLs that accrued before the Transition Year | ||
| 1.2.2 | 5 year unclaimed accrual election | ||
| 2.1.2 | Recalculated deferred tax where GloBE carrying value differs from accounting carrying value | ||
| 2.1.2 | GloBE and accounting carrying values and the Transition Rules | ||
| 2.1.2 | Additional provisions for Intragroup transactions accounted for at cost | ||
| 2.1.2 | Exclusion of GloBE carrying value from SBIE | ||
| 3.1.3 | General rules for allocating cross-border, current taxes under a cross-crediting corporate tax system: 4 Steps | ||
| 3.1.3 | Specific rules for foreign PEs/CFCs, Hybrids/rev hybrids with domestic source income | ||
| 3.1.3 | Cross-crediting between Permanent Establishments and distributions from foreign subsidiaries | ||
| 4.1 | Extension of the Substitute Loss Carry-forward DTA to PEs, hybrids and rev hybrids | ||
| 4.2 | Allocation of deferred tax expenses and benefits from a Parent Entity to a CFC, PE Hybrid or Rev Hybrid: 5 step process | ||
| 4.2.2 | Five-Year Election to exclude the allocation of all deferred tax expenses and benefits to CFCs, PEs, Hybrids and Rev Hybrids | ||
| 4.2.3 | Exclusion of deferred tax assets or liabilities arising under a Blended CFC regime from transition rules | ||
| 5.2.2 | Determining GloBE status when a Flow-through Entity is held directly by another Flow-through Entity | ||
| 5.3.2 | Non-group owners: Partially owned Flow-through Entities | ||
| 5.3.5 | Non-group owners: Indirect minority ownership | ||
| 5.4.2 | Taxes allocated to a flow-through entity | ||
| 5.5.2 | Hybrid entities – Taxes pushed down include indirect owners | ||
| 5.5.4 | Hybrid entities – Entities located in jurisdictions without a Corporate Income Tax system | ||
| 5.6.2 | Extension of taxes pushed down to include Reverse Hybrids | ||
| 6.1.4 | Option to exclude a Securitization Entity from scope of QDMTT | ||
| 6.1.4 | Option to not impose top-up tax liabilities on SPVs used in securitization transactions | ||
| 6.1.4 | Amendments to the Switch-Off rule | ||
| 6.1.4 | New definition: Securitization Entity | ||
| 6.1.4 | New definition: Securitization Arrangement | ||
| January 2025 OECD Administrtive Guidance | |||
| 1 | Articles 8.1.4 and 8.1.5 | ||
| 1 | Amendments to CbCR Safe Harbour for 9.1 | ||
| 1 | Amendments to QDMTT Safe Harbour for 9.1 | ||
| 1 | Article 9.1 of the GloBE Rules | ||
| 1 | Central Record of Legislation with Transitional Qualified Status |
| Note | Barbados | |
|---|---|---|
| QDMTT?(Enacted/Draft) | Is there a QDMTT in the Legislation? | Enacted |
| Effective Date: | Accounting Periods beginning on or after January 1, 2024 | |
| Administrative Guidance/Safe Harbour Guidance? | Are the provisions of the OECD Administrative Guidance and Safe Harbour Guidance reflected in the current legislation? | Yes |
| Separate/Transposed QDMTT | Is the QDMTT a Separate QDMTT or a Transposition of the GloBE Rules (with Amendments) | Separate |
| Domestic Groups | A QDMTT can also apply to purely domestic groups. | No |
| Scope Definitions | The definitions of Ultimate Parent Entity, MNE Group, and Constituent Entity correspond with the definitions in the GloBE Rules. | 2 |
| Income and covered taxes of Constituent Entities | The QDMTT must compute the tax liability for the jurisdiction by taking into account the income and covered taxes of Constituent Entities under the GloBE Rules. | Part III/IV |
| Separate ETRs | A QDMTT must determine a separate ETR and Top-up Tax amount for MOCEs, Joint Ventures and JV Subsidiaries. | Part V |
| Charging | A QDMTT must impose a Top-up Tax on one or more domestic Constituent Entities on the Excess Profits of all domestic Constituent Entities, including the domestic Parent Entity. | Part VIII |
| Enforceability | The legal liability for the domestic top-up tax needs to be enforceable against at least one Constituent Entity in the jurisdiction. | Part VIII |
| Different Accounting Standard? – Optional | Is the use of a local accounting standard optional? | No |
| Different Accounting Standard? – Mandatory | Is the AG2 guidance followed? | No |
| Different Accounting Standard? – Default GloBE rules | Do the general GloBE rules apply for the QDMTT accounting standard? | Yes – section 9 |
| Require 100% ownership? | The QDMTT )can require 100% ownership | Part II |
| Differences to GloBE Rules: tighter restriction is consistent with local tax rules | The QDMTT can be more restrictive than the GloBE Rules where the tighter restriction is consistent with local tax rules. | None |
| Differences to GloBE Rules: Not relevant to in the context of its domestic tax system | The QDMTT can exclude adjustments that are not relevant to in the context of its domestic tax system. | None |
| Income/Loss of a PE | The QDMTT must exclude the income or loss of a foreign Permanent Establishment from the income or loss of the Main Entity. | Part III |
| Tax Transparency | A QDMTT must include certain tax transparent provisions. | Part III |
| Adjusted Covered Taxes Consistency | The range of taxes included in Covered Taxes needs to be the same or narrower, as under the GloBE rules. | Part IV |
| GloBE Loss Election? | Not Required in QDMTT | Included |
| No Pushdown to CFC or PE | A QDMTT must exclude: (1) tax paid or incurred by a Constituent Entity-owner under a CFC Tax Regime that is pushed down to a domestic Constituent Entity in the GloBE Rules and (2) tax paid or incurred by a Main Entity that is allocated to a PE in the jurisdiction. | 27 |
| Exclude tax allocated to Hybrids | Second AG Guidance | 27 |
| Exclude allocated net basis tax on dividends (except WHT) | Second AG Guidance | 27 |
| UPE that is a Flow-Through Entity | Second AG Guidance | 39 |
| UPE subject to Deductible Dividend Regime | Second AG Guidance | 40 |
| Eligible Distribution Tax Systems | Second AG Guidance | – |
| ETR Computation for Investment Entities | Second AG Guidance | 41 |
| Investment Entity Tax Transparency Election | Second AG Guidance | 42 |
| Taxable Distribution Method Election | Second AG Guidance | 43 |
| Multi-Parented MNE Groups | Second AG Guidance | – |
| Additional Top-Up Tax/Excess Negative Tax Expense | A QDMTT needs to have provisions for additional top-up tax where there is no Net GloBE Income and the Adjusted Covered are less than zero and less than the Expected Adjusted Covered Taxes. Amount. Excess Negative Tax Carry-forward rules also need to be in place. | 32 |
| Modified Top-Up Tax Formula | The QDMTT top-up tax formula needs to be modified as the GloBE Rules subtract tax paid under a QDMTT from the current GloBE Top-up Tax. | Part V |
| Same Approach As GloBE Rules | A QDMTT must require that top-up tax is taken into account by the relevant Constituent Entity at the same time and in the same manner as under the GloBE Rules (eg it can’t be carried forward). | Part V |
| SBIE Included? | Not Required in QDMTT | 31 |
| SBIE Rates same as GloBE? | Not Required in QDMTT | 31 |
| De Minimis Rule Included? | Not Required in QDMTT | 33 |
| Restructuring Rules? | A QDMTT needs to include restructuring rules as provided in the GloBE rules to the extent necessary to conform to the tax reorganization rules in the jurisdiction. | Part VI |
| Safe Harbours? | A QDMTT needs to contain GloBE safe harbours. | 57 |
| Deferred Tax Transition Rule? | A QDMTT must include the deferred tax starting point under Article 9.1.1 of the Model Rules. | 54 |
| SBIE Transitional Rates? | Not Required in QDMTT | First Schedule |
| Initial Phase of International Activity Exemption | Not Required in QDMTT | 56 |
| Elections? | Where the GloBE Rules permit an election, a QDMTT must generally also provide for the election and require the MNE Group to make the same election under the QDMTT as is made under the GloBE Rules. | 44 |
| Deferred Tax transition: First time or refreshing rule? | Second AG | – |
| New transition year – amend tax attributes? | Second AG | – |
| Currency provisions? | Second AG | – |
| DTL Recapture rules – Aggregate DTL Categories | Fourth AG, 1.2.8 | |
| DTL Recapture rules Unclaimed Accrual Five-Year Election | Fourth AG, 1.2.8 | |
| Reverse Hybrid Pushdown | Fourth AG, 5.6.2 | |
| Securitization Entities – A QDMTT may also exclude a Securitisation Entity from its scope | Fourth AG, 6.1.4 | |
| Securitization Entities – A jurisdiction may allocate the QDMTT liability for any QDMTT top-up tax to another Constituent Entity (if any) that is located in the jurisdiction | Fourth AG, 6.1.4 | |
| Note |
| Barbados | ||
|---|---|---|
| Effective Date: | Accounting periods beginning on or after January 1, 2024 | |
| Section/Article | ||
| Safe Harbour & Penalty Relief Guidance | De Minimis Test | 57(3) |
| Safe Harbour & Penalty Relief Guidance | Simplified ETR Test | 57(3) |
| Safe Harbour & Penalty Relief Guidance | Routine Profits Test | 57(3) |
| Safe Harbour & Penalty Relief Guidance | Simplified Covered Tax defn (inc exclusion of uncertain tax positions) | 60 |
| Safe Harbour & Penalty Relief Guidance | Simplified ETR defn | 63 |
| Safe Harbour & Penalty Relief Guidance | Transition Period | 57(3) |
| Safe Harbour & Penalty Relief Guidance | Transition Rate | 63 |
| Safe Harbour & Penalty Relief Guidance | Defn of Qualified Financial Statements | 58 |
| Safe Harbour & Penalty Relief Guidance | Special Rule for Joint Ventures | 59 |
| Safe Harbour & Penalty Relief Guidance | Special Rule for Tax Neutral UPEs | – |
| Safe Harbour & Penalty Relief Guidance | Special Rules for Investment Entities and their Constituent Entity-owners | various |
| Safe Harbour & Penalty Relief Guidance | Special Rule for Net Unrealised Fair Value Loss | 61 |
| Safe Harbour & Penalty Relief Guidance | Exclusions | – |
| December 2023 OECD Administrative Guidance | ||
| 1 | Transitional CbCR – Purchase Accounting Adjustments(consistent reporting condition, goodwill impairment adjustment) | |
| 2.2.1 | Transitional CbCR – JVs | |
| 2.3.1 | Transitional CbCR – Same Financial Statements/Local Financial Statements for Statutory Reporting | |
| 2.3.2 | Transitional CbCR – Using different accounting standards | |
| 2.3.3 | Transitional CbCR – Adjustments to Qualified Financial Statements/Dividend Mismatches | |
| 2.3.4 | Transitional CbCR – MNEs not required to file CbC Reports | |
| 2.3.5 | Transitional CbCR – Qualified Financial Statements for PEs | |
| 2.4.2 | Transitional CbCR – Treatment of Taxes on income of PEs, CFCs, and Hybrid Entities | |
| 2.6 | Transitional CbCR – Treatment of hybrid arbitrage arrangements | |
| January 2025 OECD Administrtive Guidance | ||
| Amendments to CbCR Safe Harbour for 9.1 |
This website is not affiliated with or related to the OECD. We provide independent insights and analysis on the OECD Two-Pillar Solution
© 2025 OECDPillars
All Rights Reserved
