The Global Minimum Tax | Selected Issues on Pillar Two

1. Introduction

Jurisdictions worldwide are free to decide whether to implement Pillar Two. If a jurisdiction chooses to do so, the domestic legislation implementing Pillar Two must be equivalent and consistent with the GloBE Model Rules and its Commentary. This standard will ensure the coordinated implementation of Pillar Two among jurisdictions and provide certainty to MNE groups and tax administrations when applying the rules.

The equivalence in the design and the outcomes of the domestic legislation implementing Pillar Two and the GloBE Model Rules will be subject to a multilateral review process. If the standard is met, a qualified status will be granted to the rule or rules implemented by the jurisdictions. The qualified status will ensure that the S. 620rules function as intended, producing expected outcomes according to the GloBE Model Rules.

This master thesis will examine the extent to which jurisdictions must adhere to the GloBE Model Rules when implementing domestic legislation to ensure the qualified status of the introduced rules, the consequences if a domestic rule is deemed non-qualified, and how the process to grant the qualified status will work.

The first chapter is focuse...