On March 14, 2022, the OECD released Commentary to the Global Anti-Base Erosion (GloBE) (Pillar 2) Model Rules. Furthermore also a set of illustrative examples regarding the application of the Model GloBE Rules to certain fact patterns was released.
As you might know on December 22, 2021 the European Commission released a Proposal for a Council Directive on ensuring a global minimum level of taxation for multinational groups in the Union.
Although the proposal for an EU-Directive is based on the OECD GloBE Model Rules, the order of the regulations is not the same in both documents. Since the Commentary and the set of illustrative examples as released by the OECD on March 14, 2022 both refer to the article numbers as used in the OECD Model Rules and I prefer to work with the proposed EU Directive, I made a correlation table for myself. The table is meant to more efficiently find the comments/examples that relate to a certain article/paragraph of the proposed EU Pillar 2 Directive.
In this correlation table I made an overview of what article in the OECD Model Rules corresponds with which article/paragraph in the proposed EU Pillar 2 Directive. Since I thought this correlation might also come in handy for other tax specialists, I decided to publish the table on our website.
Where you see no corresponding article in the column OECD GloBE Model Rules, either no corresponding article exists (for example because the Model Rules do not contain regulations applyin to large-scale domestic groups) or I have not yet foundnd the corresponding article in the OECD Model Rules.
Article/Paragraph in the proposed Pillar 2 Directive |
Corresponding Article in the OECD GloBE Model Rules |
Chapter I - General Provisions
Article 1 - Subject-matter |
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Article 2 - Scope |
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Paragraph 1 |
Article 1.1.1. |
Paragraph 2 |
Article 1.1.2. |
Paragraph 3 |
- Article 1.1.3. |
Article 3 - Definitions |
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Sub 1 (Entity) |
Article 10.1.1. |
Sub 2 (Constituent entity) |
Article 1.3.1. |
Sub 3 (Group) |
- Article 1.2.2. & |
Sub 4 (MNE group) |
Article 1.2.1. |
Sub 5 (Large-scale domestic group) |
OECD Model Tax rules do not apply to pure domestig groups |
Sub 6 (Consolidated financial statements) |
Article 10.1.1. |
Sub 7 (Fiscal year) |
Article 10.1.1. |
Sub 8 (Filing constituent entity) |
Article 10.1.1. |
Sub 9 (Flow-through entity) |
- Article 10.2.1. & |
Sub 10 (Permanent establishment) |
Article 10.1.1. |
Sub 11 (Ultimate parent entity) |
Article 1.4.1. |
Sub 12 (Minimum tax rate) |
Article 10.1.1. |
Sub 13 (Top-up tax) |
Article 10.1.1. |
Sub 14 (Controlled foreign company tax regime) |
Article 10.1.1. |
Sub 15 (Qualified income inclusion rule) |
Article 10.1.1. |
Sub 16 (Low-taxed constituent entity) |
Article 10.1.1. |
Sub 17 (Intermediate parent entity) |
Article 10.1.1. |
Sub 18 (Controlling interest) |
Article 10.1.1. |
Sub 19 (Partially-owned parent entity) |
Article 10.1.1. |
Sub 20 (Ownership interest) |
Article 10.1.1. |
Sub 21 (Parent entity) |
Article 10.1.1. |
Sub 22 (Acceptable financial accounting standard) |
Article 10.1.1. |
Sub 23 (Qualified domestic top-up tax) |
Article 10.1.1. |
Sub 24 (Investment entity) |
Article 10.1.1. |
Sub 25 (Investment fund) |
Article 10.1.1. |
Sub 26 (Real estate investment vehicle) |
Article 10.1.1. |
Sub 27 (Pension fund) |
Article 10.1.1. |
Sub 28 (Pension services entity) |
Article 10.1.1. |
Sub 29 (Low-tax jurisdiction) |
Article 10.1.1. |
Sub 30 (Qualifying income or loss) |
Article 3.1.1. |
Sub 31 (Disqualified refundable imputation tax) |
Article 10.1.1. |
Sub 32 (Qualified refundable tax credit) |
Article 10.1.1. |
Sub 33 (Main entity) |
Article 10.1.1. |
Sub 34 (Tax transparent entity) |
- Article 10.2.1 & |
Sub 35 (Constituent entity-owner) |
Article 10.1.1. |
Sub 36 (Eligible distribution tax system) |
Article 10.1.1. |
Sub 37 (Qualified undertaxed payment rule) |
Article 10.1.1. |
Sub 38 (Designated filing entity) |
Article 10.1.1. |
Article 4 - Location of a constituent entity |
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Paragraph 1 |
Article 10.3.1. |
Paragraph 2 |
Article 10.3.2 |
Paragraph 3 |
Article 10.3.3. |
Paragraph 4 |
Article 10.3.4. |
Paragraph 5 |
Article 10.3.4. |
Paragraph 6 |
Article 10.3.5. |
Paragraph 7 |
Article 10.3.6. |
Chapter II - Application of the Income Inclusion Rule and the Under Taxed Payments Rule
Article 5 - Ultimate parent entity in the Union |
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Paragraph 1 |
Article 2.1.1. |
Paragraph 2 |
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Article 6 - Intermediate parent entity in the Union |
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Paragraph 1 |
Article 2.1.2. |
Paragraph 2 |
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Paragraph 3 |
Article 2.1.3. |
Article 7 - Partially-owned parent entity in the Union |
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Paragraph 1 |
Article 2.1.4. |
Paragraph 2 |
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Paragraph 3 |
Article 2.1.5. |
Article 8 - Allocation of the top-up tax under the income inclusion rule |
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Paragraph 1 |
Article 2.1.1. |
Paragraph 2 |
Article 2.2.2. |
Paragraph 3 |
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Article 9 - Income inclusion rule offset mechanism |
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Paragraph 1 |
- Article 2.3.1 & |
Paragraph 2 |
- Article 2.3.1 & |
Article 10 - Election to apply a qualified domestic top-up tax |
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Paragraph 1 |
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Paragraph 2 |
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Paragraph 3 |
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Paragraph 4 |
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Article 11 - Application of a UTPR across the MNE group |
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Article 2.4.1. |
Article 12 - Application of a UTPR in the UPE jurisdiction |
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Article 13 - Computation and allocation of the UTPR top-up tax amount |
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Paragraph 1 |
Article 2.6.1. first sentence |
Paragraph 2 |
Article 2.5.1. |
Paragraph 3 |
Article 2.5.2. |
Paragraph 4 |
Article 2.5.3. |
Paragraph 5 |
Article 2.6.1. |
Paragraph 6 |
- Article 10.1.1. (def.: Number of Employees) & |
Paragraph 7 |
Article 2.6.2. |
Paragraph 8 |
Article 2.6.3. |
Chapter III - Calculation of the Qualifying Income or Loss
Article 14 - Determination of the qualifying income or loss |
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Paragraph 1 |
- Article 3.1.1. & |
Paragraph 2 |
- Article 3.1.3. & |
Paragraph 3 |
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Article 15 - Adjustments to determine the qualifying income or loss |
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Paragraph 1 |
Article 10.1.1. (definitions) |
Paragraph 2 |
Article 3.2.1. |
Paragraph 3 |
Article 3.2.2. |
Paragraph 4 |
Article 3.2.3. |
Paragraph 5 |
Article 3.2.4. |
Paragraph 6 |
Article 3.2.5. |
Paragraph 7 |
- Article 3.2.6 & |
Paragraph 8 |
Article 3.2.7. |
Paragraph 9 |
Article 3.2.8. |
Paragraph 10 |
Article 3.2.9. |
Paragraph 11 |
Article 3.2.10. |
Article 16 - International shipping income exclusion |
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Paragraph 1 |
- Article 3.3.2. & |
Paragraph 2 |
- Article 3.3.1. & |
Paragraph 3 |
- Article 3.3.1. & |
Paragraph 4 |
Article 3.3.4. |
Paragraph 5 |
Article 3.3.5. |
Paragraph 6 |
Article 3.3.5. |
Article 17 - Allocation of the qualifying income or loss between a main entity and a permanent establishment |
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Paragraph 1 |
Article 3.4.1. |
Paragraph 2 |
Article 3.4.2. |
Paragraph 3 |
Article 3.4.3. |
Paragraph 4 |
Article 3.4.4. |
Paragraph 5 |
Article 3.4.5. |
Article 18 - Allocation and computation of the qualifying income or loss of a flow-through entity |
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Paragraph 1 |
- Article 3.5.3. & |
Paragraph 2 |
Article 3.5.5. |
Paragraph 3 |
Article 3.5.1. sub a |
Paragraph 4 |
Article 3.5.1. sub b |
Paragraph 5 |
Article 3.5.1. sub c |
Paragraph 6 |
Article 3.5.2. |
Chapter IV - Computation of Adjusted Covered Taxes
Article 19 - Covered taxes |
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Paragraph 1 |
Aricle 4.2.1. |
Paragraph 2 |
Article 4.2.2. |
Paragraph 3 |
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Article 20 - Adjusted covered taxes |
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Paragraph 1 |
Àrticle 4.1.1. |
Paragraph 2 |
Article 4.1.2. |
Paragraph 3 |
Article 4.1.3. |
Paragraph 4 |
Article 4.1.4. |
Paragraph 5 |
Article 4.1.5. |
Article 21 - Total deferred tax adjustment amount |
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Paragraph 1, sub a |
Article 4.4.6. |
Paragraph 1, sub b |
Article 4.4.7. |
Paragraph 2 |
Article 4.4.1. opening sentence |
Paragraph 3 |
Article 4.4.2. |
Paragraph 4 |
Article.4.4.2 |
Paragraph 5 |
Article 4.4.1. |
Paragraph 6 |
Article 4.4.3. |
Paragraph 7 |
Article 4.4.4. |
Paragraph 8 |
- Article 4.4.4. last part & |
Article 22 - Qualifying loss election |
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Paragraph 1 |
- Article 4.5.1. & |
Paragraph 2 |
Article 4.5.3. |
Paragraph 3 |
Article 4.5.2. |
Paragraph 4 |
Article 4.5.4. |
Paragraph 5 |
Article 4.5.5. first sentence |
Paragraph 6 |
Article 4.5.6. |
Article 23 - Specific allocation of covered taxes incurred by certain types of constituent entities |
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Paragraph 1 |
Article 4.3.2. sub a |
Paragraph 2 |
Article 4.3.2. sub b |
Paragraph 3 |
Article 4.3.2. sub c |
Paragraph 4 |
- Article 4.3.2. sub d & |
Paragraph 5 |
Article 4.3.2. sub e |
Paragraph 6 |
- Article 4.3.3. & |
Paragraph 7 |
Article 4.3.4 |
Article 24 - Post-filing adjustments and tax rate changes |
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Paragraph 1 |
Article 4.6.1. |
Paragraph 2 |
Article 4.6.2. |
Paragraph 3 |
Article 4.6.3. |
Paragraph 4 |
Article 4.6.4. |
Chapter V - Calculation of the Effective Tax Rate and the Top-Up Tax
Article 25 - Determination of the effective tax rate |
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Paragraph 1 |
Article 5.1.1. |
Paragraph 2 |
Article 5.1.2. |
Paragraph 3 |
Article 5.1.3. |
Paragraph 4 |
Article 5.1.1. last sentence |
Article 26 - Computation of the top-up tax |
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Paragraph 1 |
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Paragraph 2 |
Article 5.2.1. |
Paragraph 3 |
Article 5.2.3. |
Paragraph 4 |
Article 5.2.2. |
Paragraph 5 |
Article 5.2.4. |
Paragraph 6 |
Aticle 5.2.5. |
Paragraph 7 |
Article 5.1.1. last sentence |
Article 27 - Substance-based income exclusion |
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Paragraph 1 |
Article 10.1.1. for definitions |
Paragraph 2 |
- Article 5.3.1. & |
Paragraph 3 |
Article 5.3.3. |
Paragraph 4 |
Article 5.3.4. |
Paragraph 5 |
Article 5.3.5. |
Paragraph 6 |
Article 5.3.6. |
Paragraph 7 |
Article 5.3.7. |
Paragraph 8 |
Article 5.1.1. last sentence |
Paragraph 9 |
Article 5.3.2. |
Article 28 - Additional top-up tax |
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Paragraph 1 |
Article 5.4.1. |
Paragraph 2 |
Article 5.4.2. |
Paragraph 3 |
Article 5.4.3. |
Paragraph 4 |
Article 5.4.4. |
Article 29 - De minimis exclusion |
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Paragraph 1 |
Article 5.5.1. |
Paragraph 2 |
Article 5.5.2. |
Paragraph 3 |
Article 5.5.3. sub a |
Paragraph 4 |
Article 5.5.3. sub b |
Paragraph 5 |
Article 5.5.4. |
Article 30 - Minority-owned constituent entities |
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Paragraph 1 |
Article 10.1.1. for definitions |
Paragraph 2 |
Article 5.6.1. |
Paragraph 3 |
Article 5.6.2. |
Final sentence |
Article 5.6.2. Last sentence |
Article 31 - Application of the consolidated revenue threshold to group mergers and demergers |
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Paragraph 1, sub a |
Article 6.1.2. |
Paragraph 1, sub b |
Article 6.1.3. |
Paragraph 2 |
Article 6.1.1. sub a |
Paragraph 3 |
Article 6.1.1. sub b |
Paragraph 4 |
Article 6.1.1. sub c |
Chapter VI - Special Rules for Mergers and Acquisitions
Article 32 - Constituent entities joining and leaving an MNE group |
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Paragraph 1 |
Article 6.2.1. sub a |
Paragraph 2 |
Article 6.2.1. sub b |
Paragraph 3 |
Article 6.2.1. sub c |
Paragraph 4 |
Article 6.2.1. sub d |
Paragraph 5 |
Article 6.2.1. sub e |
Paragraph 6 |
Article 6.2.1. sub f |
Paragraph 7 |
Article 6.2.1. sub g |
Paragraph 8 |
Article 6.2.1. sub h |
Paragraph 9 |
Article 6.2.2. |
Article 33 - Transfer of assets and liabilities |
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Paragraph 1 |
Article 10.1.1 (Definitions) |
Paragraph 2 |
Article 6.3.1. |
Paragraph 3 |
Article 6.3.2. |
Paragraph 4 |
Article 6.3.3. |
Paragraph 5 |
Article 6.3.4. |
Article 34 - Joint ventures |
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Paragraph 1 |
Article 10.1.1. (Definitions) |
Paragraph 2 |
Article 6.4.1. sub b |
Paragraph 3 |
Article 6.4.1. sub a |
Paragraph 4 |
Article 6.4.1. sub c |
Article 35 - Multi-parented MNE groups |
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Paragraph 1 |
Article 10.1.1. |
Paragraph 2 |
- Article 6.5.1. sub a & |
Paragraph 3 |
Article 6.5.1. sub c |
Paragraph 4 |
Article 6.5.1. sub d |
Paragraph 5 |
Article 6.5.1. sub e |
Paragraph 6 |
Article 6.5.1. sub f |
Paragraph 7 |
Article 6.5.1. sub g |
Chapter VII - Tax Neutrality and Distribution Regimes
Article 36 - Ultimate parent entity that is a flow-through entity |
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Paragraph 1 |
Article 7.1.1. sub a |
Paragraph 2 |
- Article 7.1.1. sub b & |
Paragraph 3 |
Article 7.1.2. |
Paragraph 4 |
Article 7.1.3. |
Paragraph 5 |
Article 7.1.4. |
Article 37 - Ultimate parent entity subject to a deductible dividend regime |
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Paragraph 1 |
Article 10.1.1. (Definitions) |
Paragraph 2 |
Article 7.2.1. sub a, (i) & (ii) |
Paragraph 3, sub a |
Article 7.2.1. sub a, (iii) |
Paragraph 3, sub b |
Article 7.2.1. sub b |
Paragraph 3, sub c |
Article 7.2.1. sub c |
Paragraph 4 |
Article 7.2.2. |
Paragraph 5 |
Article 7.2.3. |
Paragraph 6 |
Article 7.2.4. |
Article 38 - Eligible distribution tax systems |
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Paragraph 1 |
Article 7.3.1. |
Paragraph 2 |
Article 7.3.2. |
Paragraph 3 |
- Article 7.3.3. Opening sentence & |
Paragraph 4 |
- Article 7.3.3. sub (c) & |
Paragraph 5 |
Article 7.3.5. |
Paragraph 6 |
Article 7.3.6. |
Paragraph 7 |
- Article 7.3.7. & |
Article 39 - Determination of the effective tax rate and top-up tax of an investment entity |
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Paragraph 1 |
- Article 7.4.1. & |
Paragraph 2 |
Article 7.4.2. |
Paragraph 3 |
Article 7.4.3. |
Paragraph 4 |
Article 7.4.5. |
Paragraph 5 |
Aticle 7.4.6. |
Paragraph 6 |
Article 7.4.4. |
Article 40 - Election to treat an investment entity as a tax transparent entity |
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Paragraph 1 |
Article 10.1.1. (Definitions) |
Paragraph 2 |
Article 7.5.1. |
Paragraph 3 |
Article 7.5.1. |
Paragraph 4 |
Article 7.5.2. |
Article 41 - Election to apply a taxable distribution method |
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Paragraph 1 |
Article 7.6.1. |
Paragraph 2 |
Article 7.6.2. |
Paragraph 3 |
- Article 7.6.3. & |
Paragraph 4 |
Article 7.6.5. sub (c) |
Paragraph 5 |
Article 7.6.6. |
Chapter VIII - Administrative Provisions
Article 42 - Filing obligations |
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Paragraph 1 |
Article 10.1.1. (Definitions) |
Paragraph 2 |
Article 8.1.1. |
Paragraph 3 |
Article 8.1.2. |
Paragraph 4 |
Article 8.1.3. |
Paragraph 5 |
Article 8.1.4. |
Paragraph 6 |
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Paragraph 7 |
Article 8.1.6. |
Article 43 - Elections |
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Paragraph 1 |
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Paragraph 2 |
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Paragraph 3 |
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Article 44 - Penalties |
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Paragraph 1 |
Article 8.1.8. |
Paragraph 2 |
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Chapter IX - Transitional Rules
Article 45 - Tax attributes upon transition |
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Paragraph 1 |
Article 10.1.1. (Definitions) |
Paragraph 2 |
Articl 9.1.1. |
Paragraph 3 |
Article 9.1.1. |
Paragraph 4 |
Article 9.1.2. |
Paragraph 5 |
Article 9.1.3. |
Article 46 - Transitional relief for the substance-based income exclusion |
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Paragraph 1 |
Article 9.2.1. |
Paragraph 2 |
Article 9.2.2. |
Article 47 - Exclusion from the IIR and UTPR of MNE groups in the initial phase of their international activity |
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Paragraph 1 |
- Article 9.3.1. & |
Paragraph 2 |
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Paragraph 3 |
- Article 9.3.2. & |
Paragraph 4 |
Article 9.3.4. |
Paragraph 5 |
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Article 48 - Transitional relief for filing obligations |
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Article 9.4.1. |
Chapter X - Specific application of the IIR to large-scale domestic groups
Article 49 - Large-scale domestic groups |
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Article 50 - Transitional rules |
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Paragraph 1 |
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Paragraph 2 |
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Chapter XI - Final Provisions
Article 51 - Assessment of equivalence |
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Paragraph 1 |
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Paragraph 2 |
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Paragraph 3 |
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Article 52 - Exercise of the delegation |
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Paragraph 1 |
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Paragraph 2 |
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Paragraph 3 |
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Paragraph 4 |
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Paragraph 5 |
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Article 53 - Informing the European Parliament |
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Article 54 - Bilateral agreement on simplified reporting obligations |
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Article 8.1.7. |
Article 55 - Transposition |
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Article 56 - Entry into force |
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Article 57 - Addressees |
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