ITQ(GloBE) (List) | stevetowers.tax 11/14

International Tax Quiz (ITQ)

GloBE rules series

Source material

The questions and answers are based on:

GloBE model rules released by the Inclusive Framework
Commentary to the GloBE model rules
GloBE Implementation Framework
Administrative Guidance to the GloBE model rules

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Numbering system

There are currently more than 240 ITQs. They are arranged in 2 series:

GloBE rules series (ITQ G-001, ITQ G-002, etc.)
Tax treaty series (ITQ T-001, ITQ T-002, etc.)

ITQ G-

041

Key Issues:

Step-up in basis of IP, following intra-group transfer
Transferor’s carrying value
Transition rules
Art. 9.1.3
“Transition Year” definition in Art. 10.1.1

Date uploaded:

December 16, 2022

ITQ G-

039

Key Issues:

“Excluded Dividends” definition in Art. 10.1.1
“Excluded Equity Gain or Loss” definition in Art. 10.1.1
Art. 7.4
“Investment Fund: definition in Art. 10.1.1
CFC tax
Art. 4.3.2(c) allocation of CFC tax
“Passive Income” definition in Art. 10.1.1
Cap in Art. 4.3.3
Adjusted Covered Taxes

Date uploaded:

December 2, 2022

ITQ G-

037

Key Issues:

“Joint venture” definition in Art. 10.1.1
“Ownership Interests” definition in Art. 10.1.1
“JV Subsidiary” and “JV Group” definitions in Arti. 10.1.1
Art. 6.4.1
Separate MNE Group fiction in Art. 6.4.1(a)
Equity method

Date uploaded:

November 18, 2022

ITQ G-

035

Key Issues:

Art. 10.1.1 definition of “GloBE Reorganisation”
“GloBE Reorganisation”: “demerger”
“GloBE Reorganisation”: “in whole or in significant part”
Art. 6.3.2
Art. 6.3.1

Date uploaded:

November 4, 2022

ITQ G-

033

Key Issues:

UTPR
UTPR Top-up Tax Amount
Art. 5.2
Eligible Employees
Eligible Tangible Assets
Art. 6.2.1(a)
Substance-based Income Exclusion

Date uploaded:

October 14, 2022

ITQ G-

031

Key Issues:

Art. 6.2.1(d) & (e)
Payroll carve-out
Art. 5.3.3
Tangible asset carve-out
Art. 5.3.4
Substance-based Income Exclusion
Constituent Entity transferred from one MNE Group to another MNE Group

Date uploaded:

September 30, 2022

ITQ G-

040

Key Issues:

CFC tax
Art. 4.3.2(c) allocation of CFC tax
“Passive Income” definition in Art. 10.1.1
Net service income vs. interest income
Cap in Art. 4.3.3
2 CFC regimes – foreign tax credit

Date uploaded:

December 9, 2022

ITQ G-

038

Key Issues:

“Ownership Interests” definition in Art. 10.1.1
“Joint Venture” definition in Art. 10.1.1 – exclusion under para. (a)
“JV Subsidiary” definition in Art. 10.1.1
“Constituent Entity” definition in Art. 1.3
“Group” definition in Art. 1.2
Not included in consolidated financial statements on line-by-line basis

Date uploaded:

November 25, 2022

ITQ G-

036

Key Issues:

“GloBE Reorganisation” definition in Art. 10.1.1: “transformation”, para. (b), para. (c)
Change of legal form of entity
LLC to corporation
“Non-qualifying Gain or Loss” definition in Art. 10.1.1
Continuity of identity for GloBE rules
Art. 6.3.4: (1) election is made, (2)election is not made – impact on ETR
Adjusted Covered Taxes
“subject to tax”: fully taxable, but reduced rate

Date uploaded:

November 11, 2022

ITQ G-

034

Key Issues:

Art. 3.2.1(c)
Art. 6.2.2 – “seller”
Art. 6.3.1
Uncertainties with analysis!

Date uploaded:

October 21, 2022

ITQ G-

032

Key Issues:

Art. 6.2.1(b)
Constituent Entity transferred from one MNE Group to another
Art. 6.2.1(h)
Jurisdictional Top-up Tax for disposing MNE Group, but not for acquiring MNE Group (which has high-taxed Constituent Entity, giving shelter)
Intermediate Parent Entity
Art. 2.1.2

Date uploaded:

October 7, 2022

ITQ G-

030

Key Issues:

Art. 6.1.1
Art. 6.1.2: definition of “merger”
Art. 6.1.3: definition of “demerger”
Art. 1.1.1
Consolidated revenue threshold test, in context of merger and demerger

Date uploaded:

September 23, 2022