Tax Challenges Arising from the Digitalisation of the Economy – Consolidated Commentary
to the Global Anti-Base Erosion Model Rules (2023)
Inclusive Framework on BEPS
A key part of the OECD/G20 BEPS Project is addressing the tax challenges arising from
the digitalisation of the economy. In October 2021, over 135 jurisdictions joined
a ground-breaking plan to update key elements of the international tax system which
is no longer fit for purpose in a globalised and digitalised economy. The Global Anti-Base
Erosion (GloBE) Rules are a key component of this plan and ensure large multinational
enterprise pay a minimum level of tax on the income arising in each of the jurisdictions
where they operate. More specifically, the GloBE Rules provide for a co-ordinated
system of taxation that imposes a top-up tax on profits arising in a jurisdiction
whenever the effective tax rate, determined on a jurisdictional basis, is below the
minimum rate. The Commentary to the GloBE Rules was originally released by the Inclusive
Framework in March 2022. The Commentary explains the intended outcomes under the
GloBE Rules, clarifies the meaning of certain terms and illustrates the application
of the rules to certain fact patterns. This Consolidated Commentary incorporates Agreed
Administrative Guidance that has been released by the Inclusive Framework since March
2022 up until December 2023. It provides tax administrations and taxpayers with guidance
on the interpretation and application of the GloBE Rules in order to promote a consistent
and common interpretation and application of those that will facilitate coordinated
outcomes for both tax administrations and MNE Groups.
Available from April 25, 2024
In series:OECD/G20 Base Erosion and Profit Shifting Projectview more titles