Pillar II: New OECD documents and BMF information published in January 2025

Shortly after the start of the new year, we would like to inform you about the following developments in the field of Global Minimum Taxation / Pillar II:

OECD: Three new Administrative Guidances and GloBE Information Return documents published

On 15 January 2025, the OECD published three Administrative Guidances with further clarifications. The following topics are covered:

1. Central Record of Legislation with Transitional Qualified Status

After (partial) completion of a simplified procedure for reviewing national implementation laws, the OECD has published an initial list of tax jurisdictions with a recognized PES regime or NES regime including NES safe harbour status. This temporary recognition is valid until the completion of a comprehensive review carried out by the OECD. Further updates to this list are to be expected as this simplified recognition process progresses.

2. Articles 8.1.4 and 8.1.5 of the GloBE Rules

Further clarifications are made regarding data collection in the minimum tax report (GloBE Information Return).

3. Article 9.1 of the GloBE Rules

Article 9.1 of the OECD Model Rules (on which § 80 MinBestG is based) allows the transfer of deferred tax attributes into Pillar II. This possibility is capped based on the new guidance, with the intention to prevent tax advantages granted by jurisdictions after November 30, 2021 from being carried over into the Pillar II regime in the form of deferred tax assets. This concerns for example tax credits or step-ups of tax values.

The restriction does not only apply to the full GloBE calculations but also to the simplified ETR calculation for safe harbour purposes.

In addition to the Administrative Guidances mentioned above, the OECD has updated the GloBE Information Return to take into account the changes and feedback that have been made since its original publication in July 2023.

Furthermore, a user guide and a multilateral agreement have been published as a basis for the future exchange of the GloBE Information Return between tax administrations.

The newly published Administrative Guidances and GloBE documents can be accessed at the following Link.

Information published by the Austrian Ministry of Finance (BMF) on tax jurisdictions 

 With regard to the evaluation of recognized PES and NES regulations, Austria has adopted the OECD Administrative Guidance mentioned above in the BMF information dated January 21. The BMF information lists all tax jurisdictions that, as of January 13, 2025, have implemented a recognized PES regulation or recognized NES regulation (QDMTT) in accordance with the procedure for the temporary recognition of PES and NES regulations adopted by the OECD Inclusive Framework or that meet the requirements for the NES safe harbour (QDMTT safe harbour). Currently, 30 countries are listed, such as Austria, Hungary, and several other countries in- and outside the European Union.

The BMF information can be found under the following Link.

Note

The newly published documents can have a significant impact on the calculation of Pillar II safe harbours and top-up taxes, for example if relevant tax credits have been claimed in certain jurisdictions. Our PwC Pillar II experts will be happy to assist you in evaluating the implications for your group.