TPguidelines

1. Chapter 1 determines which MNE Groups and Group Entities are subject to the GloBE Rules. Article 1.1 provides that the GloBE Rules will apply to the Constituent Entities of an MNE Group with consolidated revenues of at least EUR 750 million in at least two of the four prior Fiscal Years. Article 1.1 is modified by Article 6.1 which sets out further rules clarifying the application of the consolidated revenue threshold in the case of mergers and de-mergers.

2. Chapter 1 also includes a number of key definitions that are used to determine when an Entity or collection of Entities constitutes a Group and when that Group qualifies as an MNE Group. A broad definition of Entity in Chapter 10 ensures that the term captures separate legal persons as well as arrangements such as partnerships and trusts. As discussed further below in the Commentary to Article 1.2, Entities form a Group when they are under common control such that their income is (or would be) included in the same Consolidated Financial Statements. The term Constituent Entity is then used to identify the Group Entities that are subject to the GloBE Rules. In this context, an Entity with one or more PEs is divided into separate Constituent Entities. The Chapter also sets out those Entities (Excluded Entities) that are excluded from the rules. Further definitions which supplement the meaning of these terms are included in Chapter 10.