Tax Challenges Arising from the Digitalisation of the Economy - Global Anti-Base Erosion Model Rules (Pillar Two) Examples

Sep 20, 2026

Tax Challenges Arising from the Digitalisation of the Economy sets out illustrative examples explaining the application of the Global Anti-Base Erosion (GloBE) Rules. The document describes how the rules are designed to ensure large multinational enterprises pay a minimum level of tax in each jurisdiction of operation, and how the GloBE Rules Commentary supports consistent interpretation. It then presents structured examples across multiple chapters and articles, aligned to specific provisions and terminology.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages112

Reading Time4 h 42 min

AccessFree to download

Abbreviations and acronyms

Introduction

Chapter 2 – Examples

Chapter 3 – Examples

Chapter 4 – Examples

Chapter 5-Examples

Chapter 6-Examples

Chapter 7 – Examples

Chapter 9 – Examples

Chapter 10 – Examples

restreint OECD/G20 BASE EROSION AND PROFIT SHIFTING PROJECT Tax Challenges Arising from the Digitalisation of the Economy – Global Anti-Base Erosion Model Rules (Pillar Two) Examples Inclusive Framework on BEPS OECD/G20 Base Erosion and Profit Shifting Project Tax Challenges Arising from the Digitalisation of the Economy – Global AntiBase Erosion Model Rules (Pillar Two) Examples Inclusive Framework on BEPS This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. This document was prepared for publication by the OECD Secretariat. Please cite this document as: OECD (2025) , Tax Challenges Arising from the Digitalisation of the Economy – Global Anti-Base Erosion Model Rules (Pillar Two) Examples, OECD, Paris, [https://www.oecd.org/content/dam/oecd/en/topics/policy-sub-issues/global-minimum-tax/tax](https://www.oecd.org/content/dam/oecd/en/topics/policy-sub-issues/global-minimum-tax/tax)challenges-arising-from-the-digitalisation-of-the-economy-global-anti-erosion-model-rules-pillar-two-examples. pdf. This document was revised on 2 May 2025 to include the illustrative examples that were developed as part of the various pieces of Administrative Guidance approved by the Inclusive Framework before the end of January 2025. Photo credits: Cover © ninog – [Fotolia.com](Fotolia.com). © OECD 2025 The use of this work, whether digital or print, is governed by the Terms and Conditions to be found [at](at www.oecd.org/termsandconditions)[ ](at www.oecd.org/termsandconditions)[www.oecd.org/termsandconditions](at www.oecd.org/termsandconditions) Table of contents Abbreviations and acronyms 5 Introduction 6 Chapter 2 – Examples 7 Article 2.1.3 7 Article 2.1.5 9 Article 2.2.3 11 Article 2.2.4 13 Article 2.3.2 14 Article 2.4.1 17 Article 2.4.2 19 Article 2.5.3 20 Article 2.6.4 21 Chapter 3 – Examples 24 Article 3.1.2 24 Article 3 .2. 1(b) 29 Article 3 .2. 1(c) 31 Article 3 .2. 1(f) 32 Article 3 .2. 1(i) 35 Article 3.2.3 38 Article 3.2.6 39 Article 3.2.7 40 Article 3.3.1 42 Article 3.5.4 43 Chapter 4 – Examples 44 Article 4.1.3 44 Article 4.1.5 45 Article 4.3.2 48 Article 4.3.3 70 Article 4.4.1 71 Article 4.4.1(e) 72 Article 4.4.4 79 Article 4.4.7 83 Chapter 5-Examples 85 Article 5.2.1 85 Article 5.3.4 85 Article 5 .3.7(a) 87 Article 5.5.2 88 Chapter 6-Examples 89 Article 6.2.1(e) 89 Chapter 7 – Examples 90 Article 7.1.1(a) 90 Article 7.1.4 92 Article 7.3.4 93 Chapter 9 – Examples 94 Article 9.1.1 94 Article 9.1.2 94 Article 9.1.3 97 Chapter 10 – Examples 102 Article 10.1 102 Article 10.2 106 Abbreviations and acronyms BEPS Base Erosion and Profit Shifting CFC Controlled foreign company CIT Corporate income tax ETR Effective tax rate FX Foreign exchange FXGL Foreign currency gains or losses GloBE Global Anti-Base Erosion IIR Income Inclusion Rule LTCE Low-Taxed Constituent Entity MNE Multinational Enterprise OECD Organisation for Economic Co-operation and Development PE Permanent Establishment POPE Partially-Owned Parent Entity UPE Ultimate Parent Entity Introduction 1. The Global Base Erosion rules (GloBE Rules) have been developed as part of the solution for addressing the tax challenges of the digital economy. They are designed to ensure large multinational enterprises (MNEs) pay a minimum level of tax on the income arising in each jurisdiction where they operate. The Commentary to the GloBE Rules provides tax administrations and taxpayers with guidance on the interpretation and application of those rules. The Commentary is intended to promote a consistent and common interpretation of the GloBE Rules that will facilitate co-ordinated outcomes for both tax administrations and MNE Groups. The Commentary explains the i

FAQs

What is the purpose of the GloBE Rules described in the Introduction?

The GloBE Rules are developed to address tax challenges of the digital economy by ensuring large multinational enterprises pay a minimum level of tax on income arising in each jurisdiction they operate.

How does the Commentary relate to the examples in this document?

The Commentary provides guidance on interpreting and applying the GloBE Rules. The examples in this document illustrate application for illustrative purposes and follow the numbering of relevant provisions and articles.

What do the examples aim to demonstrate?

The examples illustrate how specific provisions of the GloBE Rules apply in concrete scenarios, clarifying intended outcomes and the meaning of terms used in the rules.

Sep 20, 2026

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