Sourcing the UK Draft Pillar Two Legislation to the OECD Model Rules

The Spring Finance Bill 2023 (Finance (No. 2) Bill) includes provisions to implement the GloBE Rules contained in the OECD Model Rules (and other relevant commentary/guidance). Unlike some jurisdictions (eg Switzerland and Liechtenstein), the UK doesn’t just transpose the OECD Model Rules into domestic law. Instead it recreates the GloBE rules as the UK multinational top-up tax with a separate body of tax law.

In many places this does not track the OECD Model Rules and instead focuses on achieving the same result as the relevant provisions in the Model Rules. As such sourcing the UK law to the relevant provision in the Model Rules can be complex. 

The table below sources all of the Articles in the OECD Model Rules to the relevant provision in the UK draft legislation (around 300 Articles/Sections). It also includes notes where there are differences from the provisions in the Model Rules.