GloBE Information Return

Filing obligations 

In principle, each Constituent Entity (CE) is required to file a GIR with each tax administration, unless (i) the UPE or a Designated Filing Entity files the GIR where it is located and (ii) there is a “Qualifying Competent Authority Agreement” in effect by the filing deadline to exchange the GloBE information with the jurisdiction of the CE. As the GIR is a template that will apply for all implementing jurisdictions, the exchange of GIR data between tax administrations should be fairly easy. The GIR should be annually filed by all MNE Groups that are in scope of Pillar Two. The first GIR should be filed no later than 18 months after the last day of the Fiscal Year in which the Pillar Two rules apply. 

The GIR itself takes the form of many tables with data points to be completed. There is a general section that applies to the MNE as a whole, and there are multiple jurisdictional sections which need to be filled in for every jurisdiction where the MNE has a CE. 

Simplifications in the GIR 

The updated version of the GIR includes some changes to the original GIR public consultation document. The following simplifications are worth noting: 

• Introduction of a transitional simplified jurisdictional reporting framework, which would apply for Fiscal Years beginning on or before 31 December 2028, but not including a fiscal year that ends after 31 December 2030. During this transitional period, some information can be provided on a jurisdictional basis, rather than on a CE-by-CE basis.  
• In jurisdictions where no To-up Tax liability arises or where there is no need to allocate Top-up Tax, the MNE Group can elect for a simplified jurisdictional reporting framework. The simplification entails, in brief, that the MNE is not required to report all adjustments to the Financial Accounting Net Income or Loss, current tax expense or deferred tax expense on a CE level. Instead, the MNE Group can report these on a jurisdictional level. The simplified jurisdictional reporting framework does not affect the calculations which are required to be undertaken at CE level, even if they are reported on an aggregated basis. 
• Provided certain conditions are met, an election may be made for aggregate reporting with respect to tax consolidated groups within a jurisdiction (i.e., treat a tax consolidated group as a single CE). 

Dissemination of GloBE information 

The below list sets out which components of the GIR will be shared with the different jurisdictions in which an MNE Group operates:  

1. The jurisdiction of the Ultimate Parent Entity is provided with the GIR as a whole.
2. Jurisdictions with taxing rights under the GloBE Rules are provided with the sections of the GIR that relate to the ETR and Top-up Tax computation (including QDMTT).  
3. All implementing jurisdictions where CEs are located, are provided with general information and the corporate structure (which covers all the data points necessary to verify whether they have any taxing rights).  

An MNE Group may opt, however, for the whole GIR to be exchanged with all of these jurisdictions. 

Further work 

It is intended that agreements between jurisdictions and the development of IT systems to facilitate the exchange of GIR return information will be rolled out. The IF also considers tailoring the information to be provided to each jurisdiction depending on whether there is expected Top-up Tax to be paid in such jurisdiction or not. The IF will additionally investigate developing potential guidance on streamlining further information requests by tax authorities, as well as potential guidance on coordinated risk assessment activities by tax authorities. 

Take aways