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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-

139

Key Issues:

  • Partially-Owned Parent Entity (POPE)

  • Art. 2.1.1

  • Art. 2.1.4

  • Art. 2.2

  • Allocable Share

  • Art. 2.3

More

Date uploaded:

July 25, 2025

ITQ G-

137

Key Issues:

  • Transition rules

  • Art. 9.1.2

  • Paras. 8.2 to 8.12 of Comm to Art. 9.1.2.

  • Deferred tax asset

  • Government tax incentive

  • Pre-approval of investment by government agency

  • Tax depreciation on 200% of investment

  • Taxpayer choice

  • Grace Period and Grace Period Limitation

More

Date uploaded:

June 27, 2025

ITQ G-

135

Key Issues:

  • Reference Entity: para. 154.1 of Comm to Art. 10.2.1

  • Reverse Hybrid Entity

  • Art. 3.5.1(c)

  • Art. 4.3.2(d)

  • Para. 59 of Comm to Art. 4.3.2(d)

  • QDMTT

  • Para. 118.30 of Comm to definition of QDMTT in Art. 10.1

More

Date uploaded:

May 23, 2025

ITQ G-

133

Key Issues:

  • Art. 3.5.1

  • Art. 10.2.1

  • “Flow-through Entity” definition in Art. 10.2.1

  • “Tax Transparent Entity” definition on Art. 10.2.1

  • Art. 4.3.2(b) & (c)

  • Reverse Hybrid Entity

  • Financial Accounting Net Income or Loss

  • CFC tax

  • Reference Entity

More

Date uploaded:

May 2, 2025

ITQ G-

131

Key Issues:

  • Art. 3.5.1

  • Art. 10.2.1

  • “Flow-through Entity” definition in Art. 10.2.1

  • “Tax Transparent Entity” definition on Art. 10.2.1

  • Art. 3.5.3

  • Para. 231 of Comm to Art. 3.5.3

  • Financial Accounting Net Income or Loss

More

Date uploaded:

April 11, 2025

ITQ G-

129

Key Issues:

  • Meaning of “jurisdiction”, for purposes of Jurisdictional Top-up Tax in Art. 5.2

  • Definition of “location” of Entity in Art. 10.3

  • Tie-breaker tests in Art. 10.3.4(b)

  • Federal vs. State taxation

More

Date uploaded:

March 28, 2025

ITQ G-

138

Key Issues:

  • Intermediate Parent Entity

  • Art. 2.1.2

  • Allocable Share

  • Art. 2.1.3(b)

  • Art. 2.3.1

  • Art. 2.3.2

More

Date uploaded:

July 18, 2025

ITQ G-

136

Key Issues:

  • Securitisation entity

  • QDMTT

  • Para. 49.1 of Comm to QDMTT Safe Harbour

  • Consistency Standard

  • Switch-Off Rule

More

Date uploaded:

May 30, 2025

ITQ G-

134

Key Issues:

  • “Flow-through Entity” definition in Art. 10.2.1

  • “Tax Transparent Entity” definition in Art. 10.2.1

  • Jurisdiction does not have CIT

  • Para. 160 of Comm to Art. 10.2.2

  • Art. 10.2.4

  • Para. 169 of Comm to Art. 10.2.5

  • Hybrid Entity

  • Financial Accounting Net Income or Loss

  • Paras. 59 to 59.3 of Comm to Art. 4.3.2(d)

More

Date uploaded:

May 9, 2025

ITQ G-

132

Key Issues:

  • Art. 3.5.1

  • Art. 10.2.1

  • “Flow-through Entity” definition in Art. 10.2.1

  • “Tax Transparent Entity” definition on Art. 10.2.1

  • Art. 4.3.2(b)

  • Split ownership

  • Financial Accounting Net Income or Loss

  • CFC tax

More

Date uploaded:

April 25, 2025

ITQ G-

130

Key Issues:

  • Art. 3.5.1

  • Art. 10.2.1

  • “Flow-through Entity” definition in Art. 10.2.1

  • “Tax Transparent Entity” definition on Art. 10.2.1

  • Comm to Art. 10.2.1: Reference Entity

  • Art. 3.5.1(b)

More

Date uploaded:

April 4, 2025

ITQ G-

128

Key Issues:

  • Election to be exempt from CIT and to pay QDMTT only

  • Impact of Substance-based Income Exclusion

  • If election is not made, will CIT qualify as Covered Tax?

  • Art. 10.1.1 definition of “Tax”: “compulsory”

More

Date uploaded:

March 21, 2025

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