26 February 2026 External T.I. 2026-1088301E5 - Subsection 61(2) return where no DMTT is payable

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Principal Issues: Whether a subsection 61(2) return is required to be filed for a fiscal year in which no DMTT is payable in respect of any Canadian constituent entity of a qualifying MNE group.

Position: Where no DMTT is payable in Canada for the fiscal year, a return under subsection 61(2) should not be required to be filed.

Reasons: Context of the GMTA, relevant information already included in the GIR.

XXXXXXXXXX							2026-108830
								François Fournier-Gendron

February 26, 2026

Dear XXXXXXXXXX:

Re: Return filing obligations under subsection 61(2) of the Global Minimum Tax Act where no tax is payable under Part 3

This letter responds to your request for a technical interpretation concerning the obligation to file a return under subsection 61(2) of the Global Minimum Tax Act (“GMTA”) in circumstances where no domestic minimum top-up tax (“DMTT”) under Part 3 of the GMTA is payable in respect of any Canadian constituent entity of a qualifying MNE group for a fiscal year. As clarified in section 50 of the GMTA, the DMTT is intended to be a “qualified domestic minimum top-up tax” (“QDMTT”) as this term is defined in subsection 2(1) of the GMTA.

You described a situation in which a GloBE Information Return (“GIR”) is filed by a non-resident parent entity of a qualifying MNE group in a jurisdiction that has a qualifying competent authority agreement with Canada. In addition, although one or more constituent entities of the MNE group is located in Canada, no DMTT is payable in respect of any such constituent entity for the fiscal year, either because a safe harbour applies or because the detailed GloBE computations in the GIR demonstrate that no top-up tax is due in respect of any of the Canadian constituent entities.

You have asked whether the obligation to file a return under subsection 61(2) of the GMTA is triggered only in situations where a DMTT is payable for the fiscal year, or whether the obligation to file a return also applies where a Canadian constituent entity is subject to Part 3 of the GMTA notwithstanding that no DMTT is ultimately payable for the year.

This technical interpretation provides general comments about the provisions of the GMTA. It does not confirm the tax treatment of a particular situation involving a specific taxpayer but is intended to assist you in making that determination.

Our comments

Under subsection 61(2) of the GMTA, a person that is liable to pay tax under Part 3 for a fiscal year is required to file, in the prescribed form and manner, with the Minister, on or before the GIR due date, a return for the fiscal year containing an estimate of the tax payable.

The filing requirement under subsection 61(2) is conditional on the existence of liability to pay tax under Part 3 for the fiscal year. Under Part 3, DMTT becomes payable only where, after applying the relevant provisions of the GMTA, including any applicable safe harbour or exclusion, a jurisdictional top-up amount is determined in respect of Canada. Where the application of those provisions results in no DMTT being payable for the fiscal year, no person is liable to pay tax under Part 3 for that year.

The information to be included in a return under subsection 61(2) of the GMTA is largely based on the information reported in the GIR, subject to any additional information required for Canadian filing purposes, including for determining a particular person’s Part 3 tax liability. In this context, where a safe harbour or exclusion applies, or where the full GloBE computations demonstrate that no top-up tax arises in respect of any Canadian constituent entity, there is no liability to pay DMTT under Part 3. In such circumstances, it is CRA’s view that subsection 61(2) does not require the filing of a return for the fiscal year.

However, it is important to note that the Minister has a general discretion under section 62 of the GMTA to require, at any time, the filing of any return under the GMTA. The Minister may exercise this discretion, for example, where the CRA has not received a GIR, whether pursuant to a qualifying competent authority agreement or through local filing.

We trust our comments will be of assistance.

Yours truly,

Charles Dumas
Section Chief
For Division Director
Specialty Tax Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch