GloBE Rules Series

ITQ G-

136

May 30, 2025

Question

ACo, a company located in jurisdiction A, is a securitisation entity established by an MNE Group (which is “within scope” of the GloBE rules).

ACo is included in the MNE Group’s consolidated financial statements.

The MNE Group has 3 other Constituent Entities located in jurisdiction A.

Jurisdiction A imposes a QDMTT.

ACo is included within the scope of the QDMTT.

However, the QDMTT law requires that the QDMTT liability is not imposed on a securitisation entity, but it is instead imposed on other Constituent Entities located in the jurisdiction. If there are no other Constituent Entities located in the jurisdiction, the QDMTT is not imposed at all.

Q1: Based on this limited information: (a) will jurisdiction A qualify for the QDMTT Safe Harbour; and (b) will the MNE Group be required to compute Top-up Tax (under the GloBE rules) in respect of jurisdiction A?

Q2: Same as above, except that, if there are no other Constituent Entities located in jurisdiction A, the QDMTT liability is imposed on ACo. Do your answers to Q1(a) & (b) change?

Answer

See para. 49.1 of the Commentary to the QDMTT Safe Harbour.

Q1:

Jurisdiction A will satisfy the Consistency Standard. Therefore, if the other 2 standards are satisfied, jurisdiction A will qualify for the QDMTT Safe Harbour.
The Switch-Off Rule will apply to the MNE Group. This means that the MNE Group must compute Top-up Tax (under the GloBE rules) in respect of jurisdiction A.

Q2:

Answer is the same as for Q1(a).
The MNE Group would be allowed to apply the QDMTT Safe Harbour in respect of jurisdiction A. That means that it will not be required to compute Top-up Tax (under the GloBE rules) in respect of jurisdiction A.

Do you agree?

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