Jurisdiction Section

Use the OECD guidance together with our clarifications to avoid errors or comments in the Jurisdiction Section when submitting the GloBE Information Return to us. Guidance on completing the XML file is set out in the OECD XML Schema User Guide, pages 41–125.

The Jurisdiction Section contains detailed information on calculations atcountry and entity level.

The Jurisdiction Section must be completed in accordance with the XML Schema User Guide, pages 41–125. This also applies where the XML file is not intended for exchange (centralised filing). 

The requirements for which information must be included in the GloBE Information Return in order for the entity to fulfil its reporting obligations will depend on a number of factors, including which countries have taxing rights. Specific requirements apply where the ultimate parent entity of the group is located in Norway. 

See the requirements for completeness of information in the GloBE Information Return

For an entity to be considered to have fulfilled its reporting obligation, the GloBE Information Return must, as a minimum, include Jurisdiction Section(s) for all entities in or connected to the group (constituent entities and joint ventures and their subsidiaries) in Norway and where Norway has taxing rights. Information on which countries have taxing rights is provided in the “JurWithTaxingRights” elements in the Jurisdiction Section and Summary.

How to complete it

"RecJurCode"

Enter the country code for Norway “NO”. If the GloBE Information Return is intended for exchange with other countries, the “RecJurCode” element must also include the country codes for all countries that will receive the information in the relevant Jurisdiction Section. In addition, the value "GIR401" or "GIR402" must be entered in the “FilingCERole” element in the Filing Info to indicate that the infomration in the GloBE Information return is intended for exchange. If the information in the relevant Jurisdiction Section is not to be exchanged, it is sufficient to enter the country code for Norway. Enter the value "GIR403" or "GIR404" in the “FilingCERole” element in the Filing Info to indicate that no information in the GloBE Information Return is intended to be exchanged.

"Deferred Taxes Recast" 

According to the OECD XML Schema User Guide, the “Recast” element under “DeferTaxAdjustAmt/Adjustment/Recast” must be completed at entity level. This means that the “Recast” element must be specified per adjustment for the relevant entity. When the “Recast” element is to be provided for an entity, the “AdjustmentItem” element must be completed with the value “GIR2516”, and “Amount” must be set to “0” to avoid XSD validation errors.

"DocSpec" 

Enter the value "OECD1" in the “DocTypeIndic” element. The alternative predefined values must not be used when submitting the GloBE Information Return in Norway. The “DocRefId” element must be completed with a free-text value that provides a unique reference, for example GIR2024NOII, where II is replaced with a new number for each part of the file.  

Percentage values outside the permitted range 

According to the OECD XML Schema User Guide, percentage values in several places in the XML file must be within the range “0–100%”, or between “0” and “1” where the value is expressed as a decimal. In some cases, the calculated percentage value may fall outside this range (0–100%). The value must be reported as “0” if the calculated percentage is below 0% (negative). If the calculated percentage is above 100%, the value must be reported as “100%” (or “1” when expressed as a decimal) to avoid XSD validation errors.

"AdditionalDataPoint" 

When certain elections are applied, the “AdditionalDataPoint” element must be completed. This applies to the following elections:

The election not to include an increase in a deferred tax liability in the deferred tax adjustment may be made either as an annual election or as a five-year election. 

If you make an annual election, see section 4-2-2 of the Global Minimum Tax Regulations (and the Commentary to Article 4.4.7, paragraph 112.1 of the Model Rules), the “Art.4.4.7” element must not be used. Instead, the value "ADT3 Art.4.4.7" must be entered in the “Description” element of the “AdditionalDataPoint”. The following text must be entered in the “Text” element: "Unclaimed Accrual Annual Election". In addition, you must provide information on the TINs of the entities to which the election applies in the “Text” element, unless the entity has chosen to use the simplified jurisdictional reporting framework. In the “Text” element, you must also provide the path to the element to which the Additional Data Point relates.  The remaining elements under “AdditionalDataPoint” must not be completed.

If, on the other hand, you make a five-year election, the guidance on completing the XML file in the OECD XML Schema User Guide, page 82, applies.

If the ultimate parent entity of the group is a flow-through entity and the reporting entity applies the rules in section 7-1 of the Norwegian Global Minimum Tax Act (Article 7.1 of the Model Rules), the “UPEAdjustments” element must be completed. Guidance on completing the XML file is set out in the OECD XML Schema User Guide, pages 65–68.

In the “Basis” element, which indicates the basis for the adjustment, there is no value available to indicate the use of Article 7.1.2 (section 7-1, subsection 2 of the Norwegian Global Minimum Tax Act). When completing the element, the value “GIR1910” (Article 7.2.2) must therefore be entered. In addition, the “Reductions” element in the path “GloBEBody/Jurisdiction Section/GloBETax/ETR/ETRStatus/ETRComputation/CEComputation/AdjustedFANIL/Adjustment/UPEAdjustments/Reduction” must be completed.

The value "ADT1 Basis" must be entered in the “Description” element of the “AdditionalDataPoint”, and the value in the “Reduction” element must also be entered in the “Amount” element of the “AdditionalDataPoint”. The “Text” element must also be completed with "Article 7.1.2". 

If the “Reduction/Exception” element is completed, the “Text” element must instead be completed with "Article 7.1.2, Exception", together with information on the path to the element to which the “AdditionalDataPoint” relates. 

If “Basis” is completed with "GIR1910" because an adjustment has been made under Article 7.2.2 (section 7-2, subsection 2 of the Norwegian Global Minimum Tax Act), the “Basis” element must be repeated and used twice. 

The remaining elements under “AdditionalDataPoint” must not be completed.

The election to include gains or losses on equity investments pursuant to section 3-2-2, subsection 5 of the Global Minimum Tax Regulations (Article 3.2.1, letter c) is not included in the XML file. If the reporting entity uses this election, information about the election must be included in the “AdditionalDataPoint” element.

The “Description” element must be completed with the value "ADT2 EquityGain". The relevant gain or loss on equity that is included in adjusted profit or loss (GloBE income or loss) when the Equity Investment Inclusion Election is applied must be entered in the “Amount” element. The “Text” element must be completed with the path to the element to which the “AdditionalDataPoint” relates. The remaining elements under “AdditionalDataPoint” must not be completed. 

Election rules

The Norwegian Global Minimum Tax Act and the Model Rules contain a number of elections rules. Elections are either annual elections or five-year elections.

  • An annual election applies only for the fiscal year in which the election is made.
  • A five-year election cannot be revoked for the year in which it is made or the following four fiscal years and remains in effect until it is revoked.

Some elections are made at country level, while others are made at entity level.

For annual elections, you indicate that the election has been made by entering “1” or “true” in the element for the relevant election.

For reporting fiscal years in which a five-year election applies, you must enter “1” or “true” in the Status element and specify the year in which the election was made in the “ElectionYear” element. The “RevocationYear” element must not be completed as long as the election applies. If the election was revoked in the Reporting Fiscal Year or in one of the four preceding Reporting Fiscal Years, you must enter “0” or “false” in the Status element, specify the year in which the election was made in the “ElectionYear” element, and specify the year in which the election was revoked in the “RevocationYear” element. If the five-year election does not apply for the Reporting Fiscal Year and has not applied in any of the four preceding Reporting Fiscal Years, the election and its sub-elements shall not be completed.

Elections may also be applied when calculating domestic top-up tax. An exception applies to the use of the simplified jurisdictional reporting framework where the relevant country does not permit the use of that framework.

The reporting entity must determine which countries this applies to and ensure that the information is reported correctly in accordance with the national rules of the relevant country. The simplified jurisdictional reporting framework may be used when calculating domestic top-up tax in Norway. However, the election is only available where no domestic top-up tax arises that must be allocated between entities in Norway.

Entity-level elections are generally reported under the “JurisdictionSection/GlobeTax/ETR/CEComputation/Elections” element, and guidance on completing the XML file is set out in the OECD XML User Guide, pages 78–85. For guidance on elections under section 7-3 of the Norwegian Global Minimum Tax Act and Article 7.3 of the Model Rules, see the OECD XML User Guide (the “AdjustedCoveredTax” and “DeemedDistTax” elements), pages 93–97.

Country-level elections are normally made under the elements in “JurisdictionSection/GloBETax/ETR/Election”, and guidance on completing the XML file is set out in the OECD XML User Guide, pages 51–56. See also the OECD XML User Guide, pages 47–49, for guidance on completing the “InitialIntActivity” element when applying the exemption provision for groups in the initial phase of international activities, see section 2-14 of the Norwegian Global Minimum Tax Act and Article 9.3 of the Model Rules. The use of this rule must also be reflected in General Section.

Elections cannot be changed after the GloBE Information Return has been submitted. An assessment may only be changed where it is incorrect, see section 12-1 of the Tax Administration Act. A request to amend that relates only to a change of election will therefore normally not be accepted. 

Safe Harbour rules and exceptions

Elections relating to the use of Safe Harbour rules or the de minimis exclusion are made at country level. The election is made by completing the relevant elements under “ETRException”. Guidance on completing the XML file is set out in the OECD XML Schema User Guide, pages 57–61. The elections must also be reflected in Summary.

When applying the routine profits test under the permanent simplified calculation or the transitional CBCR Safe Harbour , the reporting entity must also complete the “SubstanceExclusion” element in the Jurisdiction Section. This does not apply, however, where the group has reported zero profit or a loss for the country. When the “SubstanceExclusion” element is completed, the remaining validation elements in “OverallComputation” must also be completed with the value “0” to avoid XSD validation errors. This applies to the elements “FANIL”, “AdjustedFANIL”, “NetGlobeIncome”, “IncomeTaxExpense”, “ETRRate”, “TopUpTaxPercentage”, “ExcessProfits”, “TopUpTax”, and “ExcessNegTaxExpense”.

When applying the permanent simplified calculation Safe Harbour rule for non-material constituent entities, the relevant information for the applicable test must be completed under the “Non-MaterialCE” elements in “OverallComputation”. Guidance on completing the XML file is set out in the OECD XML Schema User Guide, pages 58-60 and 117–119.

If entities that are not non-material constituent entities are located in the same country or belong to the same subgroup as the non-material constituent entities, full calculations must be performed for those entities in the Jurisdiction Section.

When the routine profits test or de minimis test is applied and there are entities in the relevant subgroup that are not non-material constituent entities, the “FinancialData” and “Average” elements under “GlobeTax/Deminimis/SimplifiedNMCECalc” must also be completed for those entities.  

The election to apply the qualified domestic top-up tax (QDMTT) Safe Harbour is included in Summary.

The qualified domestic top-up tax (QDMTT) Safe Harbour cannot be applied if one of the switch-off rules in section 5-7-10, subsection 3 of the Global Minimum Tax Regulations applies.

The qualified domestic top-up tax (QDMTT) Safe Harbour for a country or subgroup may be used in combination with one of the other Safe Harbour rules or the de minimis exclusion. 

Where the entity submitting the GloBE Information Return chooses to apply the qualified domestic top-up tax (QDMTT) Safe Harbour for a country or subgroup, the Jurisdiction Section must be completed based on the national rules applicable in the Safe Harbour country. 

How to complete the Jurisdiction Section when applying the qualified domestic top-up tax (QDMTT) Safe Harbour:

  • If you apply only the qualified domestic top-up tax (QDMTT) Safe Harbour rules, the Jurisdiction Section must be completed for the country or subgroup. Information in the Jurisdiction Section must then be completed based on the national rules of the relevant Safe Harbour country.
  • If you make an additional election to combine the qualified domestic top-up tax (QDMTT) Safe Harbour with another Safe Harbour rule or the de minimis exclusion, only the parts of the Jurisdiction Section that relate to those elections must be completed.
  • The “LowTaxJurisdiction” or “UTPRAttribution” elements must not be completed when applying the qualified domestic top-up tax (QDMTT) Safe Harbour rules, unless the applicable rules in the Safe Harbour country allocate domestic top-up tax between theentities in the country based on their adjusted profit or loss (Globe income or loss).
  • When applying the qualified domestic top-up tax (QDMTT) Safe Harbour rules in Norway or for norwegian subgroups , the elements “LowTaxJurisdiction/TopUpTaxAmount”, “LTCE/TIN”, “LTCE/IIR/NetGlobeIncome”, and “LTCE/IIR/TopUpTax” must be completed where domestic top-up tax is calculated in Norway.