046

XCo, a company located in jurisdiction X, is a Constituent Entity in an MNE Group which is "within scope" of the GloBE rules. It is the only Constituent Entity located in X.

YCo, a company located in jurisdiction Y, is a Constituent Entity in the same MNE Group. It is the only Constituent Entity located in Y. XCo and YCo are sister subsidiaries.

The UPE is located in jurisdiction U. The UPE has a direct Ownership Interest in both XCo and YCo of 100%.

The GloBE rules have been implemented in jurisdictions X and Y (in both cases: IIR and UTPR), but they have not been implemented in jurisdiction U.

In a Fiscal Year:

1. UPE incurs CFC tax (under the jurisdiction U tax law) in respect of the profits of XCo. For the purposes of the GloBE rules, jurisdiction U's CFC tax law is a "CFC Tax Regime", but it is not a "Blended CFC Tax Regime".

2. YCo has a Top-up Tax amount, which is allocated (in part) to XCo under Art. 2.6.

3. XCo incurs a tax liability under jurisdiction X's minimum tax. That minimum tax has the same rules as the GloBE rules, except that it does not include a Substance-based Income Exclusion.

Based on this information:

Q1: Is jurisdiction X's minimum tax a QDMTT?

Q2: Assuming the answer to Q1 is "yes", will UPE's CFC tax and/or the jurisdiction X UTPR tax (in respect of YCo’s Top-up Tax) be taken into account in computing XCo’s QDMTT liability?