Pillar Two Elections: Jurisdictional Matrix

The OECD Model Rules include a number of elections available to MNEs to modify the treatment under the GloBE rules. 

These include the:

• Excluded Entity Election 

• Election to use the Realization Method 

• Stock-Based Compensation Election

• Election to Spread Capital Gains 

• Consolidation Election

• GloBE Loss Election

• Tax Transparency Election 

• Taxable distribution Election 

• Unclaimed Accrual Election 

• Distribution Tax Regime Election 

• Substance-Based Income Exclusion Election

• Prior Year Adjustment Election 

• Transitional Safe Harbour Election 

• De minimis Election

Further elections are included in the First Set of OECD Administrative Guidance and the Second Set of Administrative Guidance. These include the :

• Portfolio Shareholding Election

• Foreign Exchange Hedge Election

• Excess Negative Tax Carry-Forward Election

• Debt Release Election

• Equity Investment Inclusion Election

• Transitional UTPR Safe Harbour Election

• QDMTT Safe Harbour Election

As well as the Transitional CbCR Safe Harbour Election, the OECD Safe Harbours and Penalty Relief Guidance also included a Non-Material Constituent Entity Election.

Not all elections have (as of yet) been included in the current draft/enacted law, particularly in relation to the elections included in the OECD Administrative Guidance. 

Our jurisdictional matrix tracks the domestic implementation of the elections in the current draft or enacted law.