Applicability of OECD-Developed GloBE Explanatory Materials within the Legal Framework of the European Union

The introduction of Directive 2022/2523, replicating the OECD's Global Anti-Base Erosion Model Rules, necessitated clarifying the interpretive value of explanatory materials by the OECD. This Directive mandates dynamic interpretation aligned with OECD practices, unlike other direct tax harmonization measures. While this approach aims to mitigate mismatches in applying the rules in third-state situations, without specific guidance, it may conflict with principles of legality and legal certainty. The study explores possible boundaries for the applicability of materials that explain and amend these rules, suggesting formal and substantial limitations to the use of these materials. It provides a practical guide for interpreters to determine the legal basis for using external materials, which version applies, and the extent to which they can interpret Directive 2022/2523 coherently with the rules' common approach, in compliance with the principles of legality and legal certainty.