• July 2023 AG, chapter 2

• Tax credit

• Originator

• Marketable Transferable Tax Credit, MTTC

• Legal transferability standard

• Marketability standard

• Para. 112.1 in Comm to Art. 3.2.4

• Para. 112.5 in Comm to Art. 3.2.4

• Amended para. 5 of Comm to Art. 4.1.2(d)

• Non-MTTC

• Para. 14.2 of Comm to Art. 4.1.3(c)

• GloBE Income, Adjusted Covered Taxes

• Amended para. 113 of Comm to Art. 3.2.4

• Para. 14.3(b) of Comm to Art. 4.1.3(c)

• Art. 9.1.3

• GloBE carrying value

• Purported “step-up” transaction prior to Transition Year

• Deferred tax position of purchaser

• Paras. 10.1 and 10.9 of Comm to Art. 9.1.3 (added by Feb23 AG, section 4.3.3)

• Computation of GloBE Income

• Art. 10.2.5 definition of “Hybrid Entity” – Art. 4.3.2(d)

• Equity Investment Inclusion Election

• AG, section 2.9.2
  Art. 10.1.1 definition “Excluded Equity Gain or Loss”

• Art. 10.1.1 definition of “Excluded Dividends”

• Art. 10.1.1 definition of “Prior Period Errors and Changes in Accounting Principles”

• Change in accounting policy: (1) transition between pre- and post-GloBE fiscal years; and (2) deduction of corporate income tax (Art. 4.1.1(c) – Adjusted Covered Taxes)

• Art. 10.1.1 definition of “Disqualified Refundable Imputation Tax” – Art. 3.2.1(a)

• Equity Investment Inclusion Election 

• “Qualified Ownership Interest” 

• “Qualified Flow-through Tax Benefits” 

• AG, section 2.9 

• New Comm on Art. 3.2.1(c), paras. 57.4 to 57.8

• Computation of GloBE Income 

• Equity method of accounting 

• “Excluded Equity Gain or Loss”: does the definition of this term include directly related expenses? 

• “Net Taxes Expense” 

• Digital Services Tax (DST) imposed on gross basis: is it a “Covered Tax”? 

• AMT imposed on gross basis: is it a “Covered Tax”?

Excess Negative Tax Expense Carry-forward AG, section 2.7 Impact on Adjusted Covered Taxes Computation of Top-up Tax

• Art. 9.1.3

• GloBE carrying value

• Purported “step-up” transaction prior to Transition Year: GloBE Income is not impacted, but Adjusted Covered Taxes are reduced (due to tax base step-up) – thus, ETR is reduced

• Para. 10.1 of Comm to Art. 9.1.3 (added by Feb23 AG, section 4.3.3)

• Comparison with status quo

• Adjusted Covered Taxes

• Allocation of Covered Tax

• Art. 4.3.2(d)

• Art. 10.2.5 definition of “Hybrid Entity”

• Art. 4.3.3 limitation

• Art. 10.1.1 definition of “Passive Income”: (1) Is know-how included?; (2) Gross income or after deduction of related expenses

• AG, section 5.1.3: for purposes of QDMTT, does not address allocation of “Hybrid Entity” tax under Art. 4.3.2(d)

• Art. 9.1.1 

• AG, section 4.1.3 

• New Comm on Art. 9.1.1, paras. 6.1 to 6.3 

• Foreign tax credit 

• Investment tax credit 

• Deferred tax asset for tax credits Art. 10.1.1 definition of “Non-Qualified Refundable Tax Credit” 

• Art. 4.4.1(a) 

• Art. 4.4.1(e) 

• Adjusted Covered Taxes

• Equity Investment Inclusion Election 

• AG, section 2.9.1 

• Art. 4.1.3(a): “income excluded”, not “loss excluded” 

• Investments in partnerships (equity method accounting)

• Foreign source income, foreign tax credits, domestic source loss 

• Domestic law “re-sourcing” of domestic source income to foreign source income 

• Substitute Loss Carry-forward 

• DTA 

• AG, section 2.8 

• Art. 4.4.1(e) 

• Art. 4.4.1(a) 

• “Excluded Dividend”

• Transfer pricing adjustments: primary and secondary 

• Secondary transfer pricing adjustment: withholding tax on deemed dividend 

• Art. 3.2.3 & Art. 4.6.1: TP adjustment has impact on GloBE Income in current year (year of adjustment) 

• Art. 4.3.2(e): allocation of withholding tax on deemed dividend 

• AG, section 2.6