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International Tax Quiz (ITQ)

GloBE rules series

Go to Tax treaty 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

 

Your comments are very welcome!

 

I believe in continuous improvement! All your comments (positive and negative!) will be gratefully received – I will take these comments into account in future updates. Please send your comments to: contact@stevetowers.tax. Thank you!

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-

017

Key Issues:

  • Art. 2.4.1 

  • Art. 2.4.2 

  • UTPR Top-up Tax

More

Date uploaded:

May 20, 2022

ITQ G-

015

Key Issues:

  • Art. 2.1 

  • Application of the IIR 

  • POPE definition and application 

  • IPE definition and application 

  • Allocable Share 

  • Art. 2.2 

  • IIR

More

Date uploaded:

May 6, 2022

ITQ G-

013

Key Issues:

  • De minimis exclusion election 

  • Art. 5.5 

  • Art. 5.5.1, Art. 5.5.2 

  • Dormant Constituent Entity 

  • Newly formed Constituent Entity (part way through Fiscal Year) 

  • Intra-group revenue – no adjustment

More

Date uploaded:

April 22, 2022

ITQ G-

011

Key Issues:

  • Substance-based Income Exclusion 

  • Tangible asset carve-out 

  • Art. 5.3.4 

  • Art. 5.3.5 

  • Carrying value 

  • Average carrying value 

  • Held for sale 

  • Impairment adjustment 

  • Transitional relief: Art. 9.2.2

More

Date uploaded:

April 1, 2022

ITQ G-

009

​

Key Issues:

  • Computation of Effective Tax Rate, ETR 

  • Computation of Top-up Tax 

  • Allocation of Top-up Tax amongst Constituent Entities 

  • Art. 5.1.1 

  • Art. 5.1.2 

  • Calculate Top-up Tax Percentage (4 decimal places) Calculate Excess Profit 

  • Art. 5.2.1 

  • Art. 5.2.2 

  • Art. 5.2.3 

  • Art. 5.2.4

More

Date uploaded:

March 18, 2022

ITQ G-

007

​

Key Issues:

  • Allocation of Covered Taxes 

  • Art. 4.3 

  • Dividend withholding tax 

  • Royalty and interest withholding taxes 

  • CFC tax

More

Date uploaded:

February 25, 2022

ITQ G-

016

Key Issues:

  • Art. 2.1, Art. 2.2, Art. 2.3 

  • Allocable Share 

  • IIR 

  • POPE 

  • IPE 

  • UPE 

  • Art. 2.1.6 

  • Art. 2.1.3 

  • Art. 2.1.5

More

Date uploaded:

May 13, 2022

ITQ G-

014

Key Issues:

  • Minority-Owned Constituent Entities 

  • Art. 5.6 

  • Separate calculations of Top-up Tax

More

Date uploaded:

April 29, 2022

ITQ G-

012

Key Issues:

  • Prior year adjustments to Covered Taxes 

  • Impact on ETR and Top-up Tax 

  • Art. 5.4.1, Additional Current Top-up Tax 

  • Art. 4.6.1 

  • Underpayment, increase in Covered Taxes 

  • Overpayment, decrease in Covered Taxes

More

Date uploaded:

April 8, 2022

ITQ G-

010

​

Key Issues:

  • Substance-based Income Exclusion 

  • Payroll carve-out 

  • Art. 5.3.3 

  • Eligible Payroll Costs 

  • Eligible Employees 

  • Transitional relief: Art. 9.2.1

More

Date uploaded:

March 25, 2022

ITQ G-

008

​

Key Issues:

  • Flow-through Entity, Tax Transparent Entity, Reverse Hybrid Entity, Hybrid Entity 

  • Allocation of financial accounting net income or loss 

  • Allocation of Covered Taxes 

  • Art. 10.2.1 

  • Art. 4.3.2 

  • Art. 4.3.3 

  • Art. 3.5.1 

  • Partnership, partners

More

Date uploaded:

March 4, 2022

ITQ G-

006

​

Key Issues:

  • Computation of Adjusted Covered Taxes 

  • Art. 4.1.1 

  • Art. 4.1.2 

  • Art. 4.2.1 

  • Digital services tax, DST: definition of Covered Taxes – tax 

  • “in lieu of” tax on income 

  • Uncertain tax position, reversal, “paid”

More

Date uploaded:

February 18, 2022

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