Art. 4.2.1(a) and (c)

Definition of “Covered Taxes”

What is a “tax”?

Para. 24 of Comm to Art. 4.2.1

“in lieu of a generally applicable corporate income tax”

Paras. 80 to 82.7 of Comm to Art. 4.4.1

Substitute Loss Carry-forward DTA (SLCDTA)

Does SLCDTA include foreign tax credits (FTCs) related to royalties?

Hybrid Entity

How to determine which FTCs relate to Hybrid Entity and which relate to royalties – pro rata approach

Allocation of cross-border current taxes under Art. 4.3.2

Step 2 of 4-step process: “Allocable Covered Taxes”

Cross-crediting regime

Hybrid Entity

Qualified Refundable Tax Credit: impact on deemed domestic source income

Disregarded payment: impact on deemed domestic source income

Allocation of cross-border current taxes: Art. 4.3.2

Foreign tax credits: cross-crediting

Paras. 52 to 54 of Comm to Art. 4.3.2

4-step process

Change of residence treated as “transfer of assets” for purposes of Art. 9.1.3: para. 10.3 of Comm to Art. 9.1.3

Transitional CbCR Safe Harbour: impact on start of “Transition Year”

GloBE carrying value

Deferred tax asset for GloBE purposes: paras. 10.8.1 & 10.8.2 of Comm to Art. 9.1.3

GloBE impact of tax residence change

GloBE location: Art. 10.3.1 and Art. 10.3.6

Art. 6.3.4 applicable

Impact on GloBE Income and GloBE carrying value if Art. 6.3.4 election is made

Amount B

If Amount B applies in distribution jurisdiction for CIT purposes, must it also apply in distribution jurisdiction for determining GloBE Income?

If Amount B applies in distribution jurisdiction, can distribution jurisdiction also impose UTPR tax?

Allocation of cross-border current taxes under Art. 4.3.2

Step 3 of 4-step process: “Allocable Covered Taxes”

Cross-crediting regime

Cross-Crediting Allocation Key

PE and Main Entity

Allocation of cross-border current taxes under Art. 4.3.2

Step 1 of 4-step process: determining “foreign source income”

Cross-crediting regime

Hybrid Entity

Treatment of: (1) disregarded income, and (2) domestic source income, for purposes of Art. 4.3.2 allocation

Does Art. 9.1.3 apply to an intra-entity “transfer” of assets from the head office to a branch (i.e., from the Main Entity to a PE)?

Transitional CbCR Safe Harbour: impact on start of “Transition Year” for purposes of Art. 9.1.3

Art. 6.3.2 (GloBE Reorganisation) does not apply before Transition Year

GloBE carrying value

Art. 6.2.1(c) applies, Art. 6.2.2 does not apply: share sale before Transition Year

Para. 46.1 of Comm to Art. 6.2

Banks / other financial entities

Revenue threshold test in Art. 1.1.1

Gross interest income vs. net interest income: which do you count, when both are shown in income statement?

Para. 10.5 of Comm to Art. 1.1.1

IF's Guidance on CbC Reporting