Since the implementation of the Global Anti-Base Erosion Rules (GloBE), also known as the global minimum tax, multinational enterprises (MNEs) are not only required to pay additional tax (top-up tax), but are also obligated to submit specific reports to the Directorate General of Taxes (DGT). One of these reporting obligations is called the GloBE Income Return (GIR).
What Is GloBE Income Return (GIR)?
GloBE Income Return (GIR) is a special report that contains information related to the implementation of the global minimum tax within a multinational enterprise group. The report provides important details regarding the company’s group structure and global tax calculations.
In general, GIR includes information such as:
- Group entity identification
- Multinational group structure
- Effective tax rate and top-up tax calculations
- Allocation of additional tax under IIR and UTPR mechanisms
- Policy elections in accordance with GloBE provisions
The GIR must be submitted digitally in XML format, following the technical guidelines provided by the Directorate General of Taxes.
When Must GIR Be Submitted?
Based on the applicable regulations, the submission deadline for GIR is:
- No later than 15 months after the end of the fiscal year
- Specifically for the first year of GloBE implementation, the deadline is extended to 18 months
In addition, constituent entities within an MNE group are also required to submit a notification to the Directorate General of Taxes no later than 15 months after the end of the fiscal year.
Why Is GIR Important?
The introduction of GIR is an important part of implementing the Global Minimum Tax framework. Through this report, tax authorities can ensure transparency and compliance from multinational enterprises in calculating and reporting their global tax obligations. Therefore, companies need to prepare their systems, data, and reporting processes to ensure compliance and avoid potential administrative risks in the future.