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30 de abril de 20242 minute read

The OECD's recent Pillar 2 release: the Consolidated Commentary to GloBE Model Rules

On 25 April 2024, the OECD/G20 Inclusive Framework on BEPS released the Consolidated Commentary to the Global Anti-Base Erosion Model Rules, under Pillar 2 of the Inclusive Framework’s Two-Pillar Solution.

The initial Commentary to the GloBE Model Rules was approved and released by the Inclusive Framework on 14 March 2022, together with a set of detailed examples that illustrate the application of the rules to certain fact patterns.

Based on several announcements made by the OECD, the Consolidated Commentary’s release has been anticipated following the publication of three sets of Agreed Administrative Guidances in February, July, and December 2023, which introduced, a.o. safe harbors and provided clarification and guidance on the interpretation and application of the GloBE Rules for MNE Groups and tax administrations. The Consolidated Commentary incorporates various pieces of the three sets of Administrative Guidance that were approved by the Inclusive Framework in course of last year into a separate document.

While the three sets of previously issued Guidance are now integrated into the Consolidated Commentary, certain explanatory pieces of the Administrative Guidances are not included in the Consolidated Commentary. This additional guidance remains relevant for clarification and guidance on the interpretation and application of the GloBe Model Rules hence one should not only rely on the Consolidated Commentary when assessing the GloBE Model Rules.

In addition, the Illustrative Examples document, originally published on 14 March 2022, has been updated on 25 April 2024 to include the illustrative examples developed for the sets of subsequently published Agreed Administrative Guidance. The examples do not form an integral part of the Commentary and are intended to be used for illustrative purposes only.

Despite the release of the Consolidated Commentary, the OECD anticipates publishing a fourth round of Administrative Guidance in the next couple of months, which is expected to cover the clarification of a variety of issues, including the cross-border allocation of taxes. We expect that in due course the OECD will continue to update the Consolidated Commentary with these additional pieces of guidance.

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