| Status | Enacted Law |
| Law | On April 5, 2024, Law 5100/2024 was published in the Official Gazette. This implements the EU Minimum Tax Directive in Greece from December 31, 2023 (with the UTPR applying from December 31, 2024). On February 22, 2024, the Ministry of National Economy and Finance issued a draft law to implement the EU Minimum Tax Directive |
| Effective Date | Accounting periods beginning on or after December 31, 2023 |
| IIR | Yes (2024) |
| UTPR | Yes (2025) |
| QDMTT | Yes (2024) |
| Filing Deadlines | Standard |
| Safe Harbours | Transitional CbCR Safe Harbour, QDMTT Safe Harbour and the Transitional UTPR Safe Harbour. |
On April 5, 2024, Law 5100/2024 was published in the Official Gazette. This implements the EU Minimum Tax Directive in Greece from December 31, 2023 (with the UTPR applying from December 31, 2024).
On February 22, 2024, the Ministry of National Economy and Finance entitled issued a draft law to implement the EU Global Minimum Tax Directive. The draft law is subject to consultation until March 6, 2024.
The draft law includes an IIR and QDMTT from December 31, 2023 and a UTPR from December 31, 2024.
On April 5, 2024, Law 5100/2024 (the ‘Law’) was published in the Official Gazette. This implements the EU Minimum Tax Directive in Greece.
As provided in the EU Minimum Tax Directive, the Law includes an income inclusion rule (IIR) and an under-taxed profits rule (UTPR).
The IIR is to apply to financial years beginning on or after December 31, 2023. The UTPR will generally apply to financial years beginning on or after December 31, 2024.
Article 12 of the Law provides that Greece will apply a domestic minimum top-up tax (intended to be a QDMTT) for financial years beginning on or after December 31, 2023.
In Greece, according to 2022 data, there are 19 Greek business groups and 900 – 950 subsidiaries of foreign groups that exceed the €750 million consolidated turnover threshold for at least 2 of the last 4 years before 2024.
Most aspects of the OECD Administrative Guidance are not reflected in the Law, aside from the Safe Harbours and elements of the QDMTT design.
GLOBE APPLICATION
General
As expected, the Law closely follows the EU Directive. There are very few options given to member states in the EU Directive in terms of flexibility over national implementation.
As noted below, most aspects of the provisions of the OECD Administrative Guidance are not included in the Law.
Administrative Guidance
The only aspects of the OECD Administrative Guidance included in the Law are the Safe Harbours and various provisions for the Greek QDMTT. As such, 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 (First & aspects of the 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 Law.
Safe Harbour and Penalty Relief Guidance
The Law provides for the application of the three main OECD Safe Harbours in Articles 34-36.
This includes the:
-Transitional CbCR Safe Harbour;
-QDMTT Safe Harbour;
-Transitional UTPR Safe Harbour.
The Safe Harbours tie in with the OECD guidance in its published Safe Harbour Guidance and the July 2023 Administrative Guidance. The December 2023 Administrative Guidance is not included. Therefore, the various amendments to the Transitional CbCR Safe Harbour in the December 2023 Administrative Guidance are not yet reflected. This includes:
-Purchase Accounting Adjustments (consistent reporting condition, goodwill impairment adjustment)
-Additional provisions for JVs
-Same Financial Statements/Local Financial Statements for Statutory Reporting
-Using different accounting standards
-Adjustments to Qualified Financial Statements/Dividend Misatches
-MNEs not required to file CbC Reports
-Qualified Financial Statements for PEs
-Treatment of Taxes on income of PEs, CFCs, and Hybrid Entities
-Treatment of Hybrid Arbitrage Arrangements
Article 36 of the Law provides for the application of the QDMTT Safe Harbour and includes the Switch-Over rules.
As such, the following will not be able to claim the QDMTT Safe Harbour:
-transparent entities which are either a UPE or apply an IIR;
-investment entities taxed;
-entities in jurisdictions where the exemption for entities in the initial phase of their international activities applies locally; and
-joint ventures, where the QDMTT is payable by the companies of the parent company participating in the joint venture.
The Simplified calculation for Non-Material Constituent Entities Safe Harbour is not included.
ELECTIONS
Elections in the OECD Model Rules
All of the elections included in the OECD Model Rules and the EU Minimum Tax Directive are provided in the Law, including:
-Excluded Entity Election (Article 3(2) of the Law)
-Stock-Based Compensation Election (Article 17(3) of the Law)
-Election to use the Realization Method (Article 17(6) of the Law)
-Election to Spread Capital Gains (Article 17(7) of the Law)
-Consolidation Election (Article 17(9) of the Law)
-Unclaimed Accrual Election (Article 23(1)(b) of the Law)
-GloBE Loss Election (Article 24 of the Law)
-Prior Year Adjustment Election (Article 26 of the Law)
-De minimis Election (Article 31 of the Law)
-Substance-Based Income Exclusion Election (Article 29(2) of the Law)
-Taxable distribution Election (Article 47 of the Law)
-Tax transparency Election Article 46 of the Law)
-Distribution Tax Regime Election (Article 44 of the Law)
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 expected, the Law closely follows the EU Directive. There are very few options given to member states in the EU Directive in terms of flexibility over national implementation.
The main options relate to the design of the QDMTT.
The key differences are with the OECD model rules, including the extension to include large scale, purely domestic groups,
The OECD Model Rules allow flexibility as to how to apply the UTPR. Greece’s approach is to apply a UTPR top-up tax rather than a denial of deduction.
As such the carry forward provisions in Article 2.4.2 of the Model Rules for UTPR amounts not sufficient to provide for the additional cash tax expense are not relevant and these rules are not included in the Law.
DOMESTIC MINIMUM TAX
General
Article 12 of the Law includes a domestic minimum tax (intended to be a QDMTT) for financial years beginning on or after December 31, 2023.
The QDMTT calculation is based on the top-up tax calculated under the general GloBE rules which is then subject to a number of adjustments.
QDMTT Design Features
The amount of top-up tax under the QDMTT is the general GloBE top-up tax calculated under Article 28 of the Law. However, the Law provides for a number of adjustments.
It expressly applies irrespective of the shareholdings in the group entities located in Greece. 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.
Greece also applies the QDMTT to stateless entities or permanent establishments (with a place of business activity in Greece)
Under the OECD Administrative Guidance, a domestic minimum tax does not need to apply to Stateless Constituent Entities or permanent establishments to be a QDMTT. However, jurisdictions can impose a QDMTT on these entities when they are created under the domestic law of the jurisdiction (or where a permanent establishment has a place of business in the QDMTT jurisdiction).
Article 12(10) of the Law provides that instead of using the UPEs accounting standard, MNEs calculate GloBE income using Greek Accounting Standards or IFRS.
For this to apply all the constituent entities of the MNE or domestic group located in Greece must prepare financial statements based on Greek GAAP or IFRS, and their financial year must be the same as the consolidated financial statements.
The financial statements must also be subject a statutory audit.
If these conditions are not met, 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:
-the constituent entity’s financial statements are prepared in accordance with that standard,
-the information contained in the financial statements is reliable; and
-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. This is included in Article 12(10)(d) of the Law.
This preserves Greece’s primary right to tax income accruing to a Greek member entity which is also a CFC. If there were no statutory derogation from the general GloBE rules for the calculation of the domestic minimum tax, and the CFC tax paid by the controlling company abroad were included in the included taxes of the Greek CFC, the effective tax rate would be increased. Therefore, excluding the CFC tax from the Greek CFCs covered taxes allows Greece to tax low-taxed income at a higher rate than would be the case under an IIR.
Articles 12(10)(d)-(f) also prevents the pushdown of tax to hybrids, PEs and for taxes on distributions (aside from Greek withholding tax on distributions).
Any QDMTT that has not been paid within four years is usually taken into account for top-up tax purposes in the fifth year. This does not apply for the QDMTT calculation (just for tax under an IIR or UTPR). This is required to avoid circularity and ensure the QDMTT is not taken into account for the domestic minimum tax calculation.
Articles 12(11)/(12) of the Law, implement provisions of the Second Set of OECD Administrative Guidance which provide some specific rules relating to the currency to be used for calculating the QDMTT.
The general rule is that where all the Constituent Entities in the jurisdiction use the euro as their functional currency, the QDMTT requires the relevant computations in euros.
However, if not all Constituent Entities in the jurisdiction use the euro as their functional currency, the Filing Constituent Entity may make a Five-Year Election to undertake the QDMTT computations for all Constituent Entities in the jurisdiction either:
-in the presentation currency of the Consolidated Financial Statements; or
-in euros.
The exchange rate to be used is the exchange rate on the last day of the financial year.
Transitional Rules
The transitional rules for deferred tax must be included in the QDMTT. For GloBE purposes, these rules apply to the year the MNE Group is first subject to the GloBE rules.
However, the Fiscal Year for which the MNE Group is first subject to the GloBE Rules can be different from the Fiscal Year for which the MNE Group is first subject to a QDMTT.
The Second Set of OECD Administrative Guidance provides that jurisdictions should apply either a first-in-time rule or a refreshing rule. Article 12(14) of the Law provides that the Greece QDMTT applies a refreshing rule so that there is a new Transition Year when the GloBE Rules come into effect for the jurisdiction in a subsequent year.
When a new Transition Year is required because the GloBE Rules come into effect for Constituent Entities in the jurisdiction, certain tax attributes that arose under the QDMTT will need to be eliminated or re-stated to ensure coordination in and after the transition year, including:
– DTL Recapture. The Constituent Entities will not be required to recapture any deferred tax liabilities that were taken into account in the ETR computations prior to the new Transition Year.
– GloBE Loss Election. Any GloBE Loss Deferred Tax Asset that arose in a year preceding the Transition Year must be eliminated. The Filing Constituent Entity may make a new GloBE Loss election in the new Transition Year.
– Excess Negative Tax Expense Carry-forward. Any Excess Negative Tax Expense Carry-forward amount must be eliminated at the beginning of the new Transition Year.
This is provided for in Article 12(14) of the Law.
Initial Phase of International Activity Exemption
The UTPR exclusion for MNEs in their initial phase of international activity does not need to be included in a QDMTT, however, it can be included. The Second Set of OECD Administrative Guidance provides jurisdictions with three options regarding the temporary UTPR exclusion in their QDMTT 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 QDMTT 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).
Article 12(13) of the Law implements Option two in Greece.
Registration
Not provided.
Filing
The relevant aspects of the submission of a GloBE Information Return (GIR) are included, as provided in the EU Minimum Tax Directive.
The proposed approach is that every Constituent Entity located in Greece will have an obligation to file a GIR in Greece. However, this obligation can be discharged if the GIR is filed by:
-The Ultimate Parent Entity, or
-The Designated Filing Entity.
Where the GIR is being filed by either the Ultimate Parent Entity or the Designated Filing Entity, the Constituent Entity, must file a notification with the Revenue.
The notification must contain:
-Details of the entity that is filing the GIR, and
-The jurisdiction in which such an entity is located.
Where the GIR is filed by the Designated Local Entity it needs to outline the Constituent Entities that it is filing on behalf of.
Both the GIR and associated notifications must be filed no later than 15 months after the end of the fiscal year (with an 18-month deadline for the Transition Year).
Article 49 of the Law also requires submission of an additional self- assessment return (a ‘GloBE Top-Up Tax Return’) by the last working day of the month following the month of the GIR filing deadline.
Payment
Article 49 of the Law provides that payment of top-up tax must be made by the last working day of the month following the deadline for submitting the top-up tax return.
Section 44 applies a late payment penalty of 2% of the amount of the unpaid top-up Tax (increasing to 5% where any top-up tax is not paid within 30 days from the date it becomes payable).
None issued.
| Greece | |||
|---|---|---|---|
| Effective Date: | Accounting periods beginning on or after December 31, 2023 | ||
| Section/Article | |||
| First Set of OECD Administrative Guidance | |||
| 1.1 | Rebasing monetary thresholds in the GloBE Rules | – | |
| 1.2 | Deemed consolidation test | – | |
| 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 | 12 | |
| 2 | MTTCs | – | |
| 3 | SBIE Rules | ||
| – Foreign rules | – | ||
| Stock-based compensation election | – | ||
| Leases | – | ||
| – Impairment losses inc in tangible asset value | – | ||
| 4.1 | QDMTT Safe Harbour | 36 | |
| 4.2 | UTPR Safe Harbour | 35 | |
| 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 | Greece | |
|---|---|---|
| QDMTT?(Enacted/Draft) | Is there a QDMTT in the Legislation? | Yes – Enacted |
| Effective Date: | Accounting periods beginning on or after December 31, 2023 | |
| 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) | Transposed |
| Domestic Groups | A QDMTT can also apply to purely domestic groups. | Yes – |
| Scope Definitions | The definitions of Ultimate Parent Entity, MNE Group, and Constituent Entity correspond with the definitions in the GloBE Rules. | Transposed – 12(9) |
| 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. | Transposed – 12(9) |
| Separate ETRs | A QDMTT must determine a separate ETR and Top-up Tax amount for MOCEs, Joint Ventures and JV Subsidiaries. | Transposed – 12(9) |
| 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. | 12(1) |
| Enforceability | The legal liability for the domestic top-up tax needs to be enforceable against at least one Constituent Entity in the jurisdiction. | Transposed – 12(9) |
| Different Accounting Standard? – Optional | Is the use of a local accounting standard optional? | No |
| Different Accounting Standard? – Mandatory | Is the AG2 guidance followed? | 12(10)(c) (AG2 local accounting standard rule) |
| Different Accounting Standard? – Default GloBE rules | Do the general GloBE rules apply for the QDMTT accounting standard? | No |
| Require 100% ownership? | The QDMTT )can require 100% ownership | No |
| 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. | Transposed – 12(9) |
| Tax Transparency | A QDMTT must include certain tax transparent provisions. | Transposed – 12(9) |
| Adjusted Covered Taxes Consistency | The range of taxes included in Covered Taxes needs to be the same or narrower, as under the GloBE rules. | Transposed – 12(9) |
| GloBE Loss Election? | Not Required in QDMTT | Transposed – 12(9) |
| 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. | 12(10)(d) |
| Exclude tax allocated to Hybrids | Second AG Guidance | 12(10)(e) |
| Exclude allocated net basis tax on dividends (except WHT) | Second AG Guidance | 12(10)(f) |
| UPE that is a Flow-Through Entity | Second AG Guidance | 12(7) |
| UPE subject to Deductible Dividend Regime | Second AG Guidance | 12(6) |
| Eligible Distribution Tax Systems | Second AG Guidance | 12(7) |
| ETR Computation for Investment Entities | Second AG Guidance | 12(8) |
| Investment Entity Tax Transparency Election | Second AG Guidance | Transposed – 12(9) |
| Taxable Distribution Method Election | Second AG Guidance | Transposed – 12(9) |
| Multi-Parented MNE Groups | Second AG Guidance | Transposed – 12(9) |
| 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. | Transposed – 12(9) |
| 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. | 12(10)(b) |
| 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). | Transposed – 12(9) |
| SBIE Included? | Not Required in QDMTT | Transposed – 12(9) |
| SBIE Rates same as GloBE? | Not Required in QDMTT | Transposed – 12(9) |
| De Minimis Rule Included? | Not Required in QDMTT | Transposed – 12(9) |
| 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. | Transposed – 12(9) |
| Safe Harbours? | A QDMTT needs to contain GloBE safe harbours. | Transposed – 12(9) |
| Deferred Tax Transition Rule? | A QDMTT must include the deferred tax starting point under Article 9.1.1 of the Model Rules. | Transposed – 12(9) |
| SBIE Transitional Rates? | Not Required in QDMTT | Transposed – 12(9) |
| Initial Phase of International Activity Exemption | Not Required in QDMTT | Transposed – 12(9) |
| 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. | Transposed – 12(9) |
| Deferred Tax transition: First time or refreshing rule? | Second AG | Refreshing Rule – Art 12(14) |
| New transition year – amend tax attributes? | Second AG | Yes- 12(14) |
| Currency provisions? | Second AG | 12(12) |
| 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 |
| Greece | ||
|---|---|---|
| Effective Date: | Accounting periods beginning on or after December 31, 2023 | |
| Section/Article | ||
| Safe Harbour & Penalty Relief Guidance | De Minimis Test | 34(2) |
| Safe Harbour & Penalty Relief Guidance | Simplified ETR Test | 34(2) |
| Safe Harbour & Penalty Relief Guidance | Routine Profits Test | 34(2) |
| Safe Harbour & Penalty Relief Guidance | Simplified Covered Tax defn (inc exclusion of uncertain tax positions) | 34(1) |
| Safe Harbour & Penalty Relief Guidance | Simplified ETR defn | 34(3) |
| Safe Harbour & Penalty Relief Guidance | Transition Period | 34(1) |
| Safe Harbour & Penalty Relief Guidance | Transition Rate | 34(1) |
| Safe Harbour & Penalty Relief Guidance | Defn of Qualified Financial Statements | 34(1) |
| Safe Harbour & Penalty Relief Guidance | Special Rule for Joint Ventures | 34(5) |
| Safe Harbour & Penalty Relief Guidance | Special Rule for Tax Neutral UPEs | 34(6) |
| Safe Harbour & Penalty Relief Guidance | Special Rules for Investment Entities and their Constituent Entity-owners | 34(10) |
| Safe Harbour & Penalty Relief Guidance | Special Rule for Net Unrealised Fair Value Loss | 34(4) |
| Safe Harbour & Penalty Relief Guidance | Exclusions | 34(8) |
| 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 |
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