The GloBE Information Return (𝐆𝐈𝐑) is a standardized information return designed to facilitate compliance with and administration of the P2 rules. The AG contains three key updates related to the GIR and also clarifies whether a country’s implementation of the P2 rules can be considered ‘qualified’ for P2 purposes.

1. GIR Multilateral Competent Authority Agreement (𝐌𝐂𝐀𝐀)
The GIR should in principle be filed in all jurisdictions with P2 rules where an in-scope multinational group (MNE) has a presence. However, if an MCAA is in place, the GIR only has to be filed in one country (𝐆𝐈𝐑 𝐅𝐢𝐥𝐢𝐧𝐠 𝐂𝐨𝐮𝐧𝐭𝐫𝐲) provided the GIR will be exchanged with others under the MCAA. The GIR Filing Country does not need to implement P2 but must have a qualified filing process. Hence, the US could be a GIR Filing Country without implementing P2. Depending on the participants to the MCAA, US MNEs should review carefully which country is most suitable for filing the GIR.

2. Central Record
P2 consists of two interlocking rules to levy top-up tax (𝐓𝐓) - the Income Inclusion Rule (𝐈𝐈𝐑) and the Undertaxed Profits Rule (𝐔𝐓𝐏𝐑). Countries can also introduce a Domestic Minimum Top-up Tax (𝐃𝐌𝐓𝐓) that is aligned with P2 principles and creditable under IIR and UTPR. If a DMTT meets specific criteria, it can fall under the ‘QDMTT Safe Harbour’, exempting that country from IIR and UTPR. To determine which country can levy TT, it should hence be determined if P2 rules in (other) countries align with the P2 model rules and can be considered ‘qualified’. A transitional list of countries has now been released with an overview of qualified IIR, DMTT, and QDMTT Safe Harbour status per country. Such transitional qualification mechanism relies on self-certification. Permanent status is expected within two years once full legislative review has been completed. All DMTTs included on the transitional list qualify for the QDMTT Safe Harbour and all IIRs are qualified IIRs.

3. GIR updates
When only one country has taxing rights under P2, the AG provides for simplification by allowing the GIR to be completed under the domestic legislation of that country. This could for example arise if only one country has the right to impose TT under P2 in relation to another country (e.g., under the IIR or QDMTT Safe Harbour). In such cases, an explanation of the differences between the P2 model rules and the local implementation should be included in the GIR.

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