Qualified Status under GMT

Malaysia’s GMT legislation must be applied consistently with the GloBE Rules to achieve qualified status of Multinational Top-up Tax (MTT) and Domestic Top-up Tax (DTT). The GloBE Rules has been defined in subsection 157(1) of Income Tax Act 1967 as :

  1. the GloBE Model Rules;
  2. the GloBE Rules Commentary and any further commentaries published by the Organisation for Economic Co-operation and Development (OECD) / G20 Inclusive Framework on Based Erosion and Profit Shifting that are relevant to the implementation of the GloBE Rules; and
  3. any Agreed Administrative Guidance or any other guidance published by the OECD/ G20 Inclusive Framework on Base Erosion and Profit Shifting that are relevant to the implementation of the GloBE Rules.

The qualified status of an implementing jurisdiction is important for determining the application of the rule order and enabling MNE Groups to claim the QDMTT Safe Harbour.

The list of jurisdictions with transitional qualified status can be found in the OECD’s central record and the list can be found here.