New Zealand’s legislation allows the GloBE information return (GIR) to be filed 18 months after the end of the 1st fiscal year that the GloBE rules apply, but many other jurisdictions will be in their 2nd year by then.
When to file the 1st year return
To avoid complications when other jurisdictions apply the GloBE rules, New Zealand-headquartered multi-national enterprise (MNE) groups should file the GIR in New Zealand within 15 months of their 1st fiscal year end. We will allow for this earlier filing in our system scheduling.
Any impacted New Zealand-headquartered MNE group should notify the jurisdiction where it filed the GIR in the 1st year that a filing change to New Zealand is being made for the GIR in respect of the 2nd year.
Filing the GIR in another jurisdiction
Foreign-headquartered MNE groups proposing to file the GIR in another jurisdiction must notify us. They should do this when they register. Any future change in filing the GIR requires an update in the GloBE account in myIR. MNE groups can change the notification details in myIR.
We are planning to have a standing or continuous notification for the GIR filing where we only need to be notified of changes after the 1st notification at the time of registration.
Exchanges of the GIR
The parts of the GIR provided to each jurisdiction where the MNE group is operating have been multilaterally agreed as part of an optional Dissemination Approach. This will depend on the MNE group’s structure and the rule order under the GloBE Rules.
Competent authorities will follow the option exercised by MNE groups when filing the GIR. The option will be 1 of the following.
- Providing the full GIR to all impacted jurisdictions that have implemented 1 or all of the income inclusion rule (IIR), undertaxed profits rule (UTPR) or qualified minimum domestic top-up tax (QDMTT) i.e. the current exchange process for country-by-country reports.
- Following the Dissemination Approach to work out when and to what extent a General Section - or 1 or more Jurisdictional Sections of the GIR - will be provided to each jurisdiction applying 1 or all of the IIR, UTPR or QDMTT.
Multinational top-up tax return
As all the necessary details for calculating the top-up tax under the IIR (including the DIIR) and the UTPR will be in the GIR, we propose only the following details are included in a streamlined return.
This return will be filed by the designated New Zealand constituent entity on behalf of the MNE group:
- constituent entity name (and related IRD number) filing on behalf of the MNE group
- ultimate parent entity name
- amount of top-up tax payable (as per GIR)
- schedule of constituent entities (and related IRD numbers) covered in the return.
The details of the top-up tax return are still being developed and may change, so the information on the return requirements are indicative only.
Part of this work includes a possible remedial law change that would mean there is no need to file returns where there is no tax liability, and to make it clear how the time bar applies if there is no filing requirement.
Contact us
Please send any questions to [email protected]