As part of the ongoing work of the OECD/G20 Inclusive Framework on BEPS, the OECD secretariat is seeking public comments on certain aspects of the Global Anti-Base Erosion (GloBE) Proposal under Pillar Two.


In May 2019, the OECD/G20 Inclusive Framework on BEPS (Inclusive Framework) agreed a Programme of Work for Addressing the Tax Challenges of the Digitalisation of the Economy. The Programme of Work is divided into two pillars:

  • Pillar One addresses the allocation of taxing rights between jurisdictions and considers various proposals for new profit allocation and nexus rules;
  • Pillar Two (also referred to as the “GloBE” proposal) focuses on the remaining BEPS issues and seeks to develop rules that would provide jurisdictions with a right to “tax back” where other jurisdictions have not exercised their primary taxing rights or the payment is otherwise subject to low levels of effective taxation.

To make progress towards reaching a consensus solution to Pillar Two issues, the OECD Secretariat has prepared a public consultation document. This consultation document was discussed by the Working Party No. 11 at its meeting on 9-10 October 2019 and by the Steering Group of the Inclusive Framework and is now released to the public for comments.

Public consultation document

This consultation document (available soon in French) focuses on specific technical issues in respect of the GloBE proposal where input from stakeholders would be valuable in progressing the work. For purposes of this consultation, comments are welcome on all aspects of the Programme of Work on Pillar Two, but requested specifically on three technical design aspects of the GloBE proposal:

  1. the use of financial accounts as a starting point for determining the tax base;
  2. the extent to which an MNE can combine income and taxes from different sources in determining the effective (blended) tax rate on such income; and
  3. stakeholders’ experience with, and views on, carve-outs and thresholds that may be considered as part of the GloBE proposal.

The comments provided will assist members of the Inclusive Framework in the development of a solution for its final report to the G20 in 2020. Some of the technical and design aspects of the GloBE proposal depend on policy choices to be agreed within the context of the Inclusive Framework. For example, the mechanics and operation of the undertaxed payment rule and the nature and scope of the subject to tax rule need to be further developed by the Inclusive Framework for a clearer outline of these rules to emerge, which could then benefit from further public consultation at a future point in time.

This consultation document has been prepared by the Secretariat, and do not represent the consensus views of the Inclusive Framework, the Committee on Fiscal Affairs, or their subsidiary bodies.

Interested parties are invited to send their comments no later than Monday, 2 December 2019, 18:00 (CET), by e-mail to [email protected] in Word format (in order to facilitate their distribution to government officials). All comments should be addressed to the International Co-operation and Tax Administration Division, Centre for Tax Policy and Administration.

Please note that all comments on this public consultation document will be made publicly available. Comments submitted in the name of a collective “grouping” or “coalition”, or by any person submitting comments on behalf of another person or group of persons, should identify all enterprises or individuals who are members of that collective group, or the person(s) on whose behalf the commentator(s) are acting. Speakers and other participants at the upcoming public consultation meeting in Paris will be selected from among those providing timely written comments on this consultation document.

Public consultation meeting

A public consultation meeting on the GloBE proposal will be held on 9 December 2019, at the OECD Boulogne in Boulogne-Billancourt. The objective is to provide external stakeholders an opportunity to provide input on the ongoing work, specifically the three technical design aspects mentioned above. Further information about attending the public consultation is available on the dedicated meeting page.


(Source: OECD Tax)

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