
Nigeria Enacts High-Level GloBE Minimum Tax Rules
On 6 September 2025, Nigeria’s Tax Act 2025 was published in the Official Gazette. This includes a DMTT (without any of the detailed GloBE adjustments yet applying).
The Administrative Guidance (AG) issued on July 17, 2023, provides new rules that apply to transferable tax credits. A transferable tax credit is similar to a refundable tax credit and can generally be used to pay income taxes or can be sold to someone else and the proceeds used to pay its income taxes or other expenses.
The U.S for instance, has a number of transferable tax credits available under the 2022 Inflation Reduction Act.
The original GloBE rules and commentary did not address the treatment of transferable tax credits. In addition IFRS and US GAAP do not provide comprehensive guidance on the accounting treatment.
Given the treatment of tax credits can have a significant effect on the ETR, the AG provides specific treatment.
In particular the AG provides rules governing:
– Marketable Transferable Tax Credits (MTTCs),
– Non-Marketable Transferable Tax Credits (Non-MTTCs), and
– Other Tax Credits (OTCs)
MTTCs are included in the computation of GloBE Income or Loss (ie the same as Qualified Refundable Tax Credits (QRTC)s), whereas non QRTCs, non-MTTCs, and all OTCs are treated as a reduction to Covered Taxes.
When assessing whether a tax credit is a QRTC or a MTTC, its refundability is considered first. If a tax credit meets the refundability criteria and qualifies as a QRTC, it will be defined as a QRTC irrespective of whether it could be also transferable at a marketable price.
The AG provides that a MTTC is a tax credit that can be used by the holder of the credit to reduce its liability for a Covered Tax in the jurisdiction that issued the tax credit and that meets:
– the legal transferability standard; and
– the marketability standard
in the hands of holder.
The legal transferability standard is met for the Originator of a tax credit if the tax credit regime is designed in a way that the Originator can transfer the credit to an unrelated party in the Fiscal Year in which it satisfies the eligibility criteria for the credit or within 15 months of the end of this year.
The legal transferability standard is met for a purchaser of a tax credit if the tax credit regime is designed in a way that the purchaser can transfer the credit to an unrelated party in the Fiscal Year in which it purchased the tax credit.
The marketability standard is met for the Originator of a tax credit if it is transferred to an unrelated party within 15 months of the end of the Origination Year (or, if not transferred or transferred between related parties, similar tax credits trade between unrelated parties within 15 months of the end of the Origination Year) at a price that equals or exceeds the Marketable Price Floor.
The marketability standard is met for a purchaser if that purchaser acquired the credit from an unrelated party at a price that equals or exceeds the Marketable Price Floor. Marketable Price Floor means 80% of the net present value (NPV) of the tax credit, where the NPV is determined based on the yield to maturity on a debt instrument issued by the government that issued the tax credit with equal or similar maturity (and up to 5-year maturity) issued in the same Fiscal Year as the tax credit is transferred (or if not transferred, the Origination Year). For this purpose, the tax credit is the face value of the credit or the remaining creditable amount in relation to the tax credit.
A Non-Marketable Transferable Tax Credit is a tax credit that is transferable but is not a Marketable Transferable Tax (and is not a a Marketable Transferable Tax Credit).
This therefore allows tax credits that do not qualify as refundable to still qualify for the same treatment as QRTCs if they can meet the definition of an MTTC.
On 6 September 2025, Nigeria’s Tax Act 2025 was published in the Official Gazette. This includes a DMTT (without any of the detailed GloBE adjustments yet applying).
On September 11, 2025, the Polish Ministry of Finance issued the draft Pillar 2 notifications and top-up tax returns for consultation.
On August 29, 2025, Vietnam issued its Decree for the detailed implementation of the Pillar 2 rules from January 1, 2024.
On September 2, 2025, Portugal issued Ordinance No. 290/2025/1 which includes the format for the Pillar 2 registration form (Form 62).
On September 2, 2025, Act No. 316/2025 Coll was published in the Official Gazette to amend the Minimum Tax Act for various aspects of the OECD Administrative Guidance as well as filing dates, QDMTT amendments and amending the Safe Harbour rules.
On August 31, 2025, the Ministry of Economy and Finance sent the Draft Budget Law for the period 2025–2029 to Parliament. This includes a domestic minimum tax (intended to be a QDMTT).
On August 29, 2025, Brazil issued proposed amendments to Normative Instruction No. 2,228 for consultation to take account of the June 2024 and January 2025 OECD Administrative Guidance and other sundry amendments.
On August 29, 2025, Ordinance No. 21 of August 28, 2025 was published in the Official Gazette. This amends various aspects of the Minimum Tax Act, including for the filing deadline for the designated filing entity nomination, transferable tax credits and the excess negative tax carry forward election.
On August 26, 2025, Australia issued a list of jurisdictions that have qualified status for the purposes of the income inclusion rule and domestic minimum tax (including the QDMTT Safe Harbour).
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