MTT09950 - Reference materials: Table of abbreviations and acronyms

This page provides a list of abbreviations and acronyms that may be encountered when working on Pillar Two.

The list is intended as a convenient reference aid only. For definitions and explanations of defined terms, please use the search function in the manual.


Abbreviation / acronym

Meaning

AG / AAG

Administrative Guidance / Agreed Administrative Guidance

AFXGL

Asymmetric Foreign Exchange Currency Gain or Loss

AT1

Additional Tier 1 (Capital)

ATL

Above the Line

BCAA

Bilateral Competent Authority Agreement

BEPS

Base Erosion and Profit Shifting

BTA

Business Tax Account

BTL

Below the Line (e.g. tax refund)

BTN

Below Threshold Notification

CbC / CbCR

Country-by-Country / Country-by-Country Reporting

CE

Constituent Entity (equivalent to "member" in UK legislation)

CFC

Controlled Foreign Company

CFS

Consolidated Financial Statements

CIT

Corporate Income Tax

DIIR

Domestic Income Inclusion Rule (a specific type of IIR, see MTT62410)


DMT / DMTT

Domestic Minimum Top-up Tax (usually QDMTT, when qualifying under the peer review process)

DTA

Deferred Tax Accounting

Deferred Tax Asset

DTL

Deferred Tax Liability

DTT

Domestic Top-up Tax (the UK implementation of QDMTT)

ETA

Eligible Tangible Assets

ETR

Effective Tax Rate

FANIL

Financial Accounting Net Income or Loss (equivalent to "underlying profits" in UK legislation)

FTC

Foreign Tax Credit

FTE

Flow-Through Entity

GILTI

Global Intangible Low-Taxed Income (now NCTI)

GIR

GloBE Information Return

GIR MCAA

Multilateral Competent Authority Agreement on the Exchange of GloBE Information

GloBE

Global Anti-Base Erosion - may be used to refer to the main ruleset in the Model Rules (i.e. IIR and UTPR), distinguished with either a QDMTT or one or more of the Safe Harbour rulesets

GMT

Global Minimum Tax

IF

OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting. The Inclusive Framework expands the OECD countries to include others who intend to implement Pillar Two.

IFRS

International Financial Reporting Standards

IIR

Income Inclusion Rule

JITE

Jurisdictional Income Tax Expense

JPBT

Jurisdictional Profit (or Loss) before Income Tax

JV

Joint Venture (defined specifically for Pillar Two purposes)

LFAS

Local Financial Accounting Standard (an alternative basis for calculations using local GAAP available in some QDMTTs)

LTCE

Low-Taxed Constituent Entity (i.e. a member in a territory where the ETR is less than 15%)

M&A

Mergers and Acquisitions

M2M

Mark to Market

MAAC

Multilateral Convention on Mutual Administrative Assistance in Tax Matters

MCAA

Multilateral Competent Authority Agreement

MNE

Multinational Enterprise (referred to as "multinational group" in UK legislation)

MOCE

Minority-Owned Constituent Entity

MR

Model Rules

MTTC

Marketable Transferable Tax Credit

MTT

Multinational Top-up Tax (UK implementation of the IIR and UTPR)

NCTI

Net CFC Tested Income (previously GILTI)

NMCE

Non-Material Constituent Entity

NMTC

Non-Marketable Transferable Tax Credit

OCI

Other Comprehensive Income

OECD

Organisation for Economic Co-operation and Development

ORIP

Offshore Receipts in respect of Intellectual Property

ORN

Overseas Return Notification

PE

Permanent Establishment

POPE

Partially-Owned Parent Entity

PPA

Purchase Price Accounting/Adjustments/Allocation

QDMTT

Qualifying Domestic Minimum Top-up Tax

QDT credit

Qualifying Domestic Top-up Tax Credit


QIIR

Qualifying Income Inclusion Rule

QRTC

Qualifying Refundable Tax Credit

QTI

Qualifying Tax Incentive

QUTPR

Qualifying Undertaxed Profits Rule

RDEC

Research and Development Expenditure Credit

REA

Recapture Exception Accrual

REIT / REIV

Real Estate Investment Trust / Real Estate Investment Vehicle

RT1

Restricted Tier 1 (Capital)

SBIE

Substance-Based Income Exclusion

SBTI

Substance-Based Tax Incentive (Safe Harbour)

SbS

Side-by-Side (Safe Harbour)

SESH

Simplified ETR Safe Harbour

SH

Safe Harbour

STTR

Subject-To-Tax Rule

TCSH

Transitional CbCR Safe Harbour

TP

Transfer Pricing

Top-up Tax (uncommon)

TPR

Transitional Penalty Relief (in some guidance)

TSH

Transitional Safe Harbour (the CbCR Safe Harbour)

TTC

Transferable Tax Credit

UPE

Ultimate Parent Entity

UTPR

The backstop rule to the Income Inclusion Rule, generally referred to as the Undertaxed Profits Rule although it has no official title in OECD documents