Portugal has granted in-scope multinational groups additional time to submit their first GloBE Information Returns for fiscal year 2024 without incurring penalties: Order 76/2026-XXV of 3 June 2026 establishes that filings made up to and including 30 September 2026 will not attract penalties. This relief applies to groups with consolidated revenue of EUR 750 million or more that fall within the scope of the Minimum Tax Directive (EU) 2022/2523 and have operations or constituent entities in Portugal. Companies that have not yet filed should treat this deadline as firm and begin preparation immediately.
What Changed and Why It Matters
The OECD/G20 Inclusive Framework's Pillar Two rules require large multinational groups to pay a minimum level of tax on income arising in each jurisdiction where they operate. In the European Union, those rules were transposed through Directive (EU) 2022/2523, which member states – including Portugal – were required to implement into national law.
The first GloBE Information Returns (GIRs) covering fiscal year 2024 were due by 30 June 2026 in most jurisdictions. However, several administrations acknowledged the practical complexity of initial compliance and announced relief periods. Portugal's Autoridade Tributária e Aduaneira (AT) formalised this approach through Order 76/2026-XXV, granting a penalty-free window until 30 September 2026. Comparable measures were adopted in France (extended to 1 September 2026, announced 8 July 2026) and Belgium (GIR notification extended to 30 September 2026).
This relief does not suspend the underlying obligation to file. Groups that miss the 30 September 2026 date may face penalties under standard Portuguese tax enforcement rules administered by the AT. The relief also does not affect any top-up tax payment obligations, which remain subject to their own deadlines under national rules.
The Side-by-Side Package and Commission Notice
On 5 January 2026, the OECD/G20 Inclusive Framework approved the so-called Side-by-Side package. This package introduces UPE safe harbours, additional simplifications, and clarifications on the treatment of substance-based incentives – all of which have direct relevance to how groups compute their effective tax rate under GloBE rules.
Commission Notice C/2026/253 of 12 January 2026 confirmed that the Side-by-Side package applies within the framework of Directive (EU) 2022/2523. Groups preparing their first GIR filing should therefore apply the updated guidance, not earlier drafts. In particular, the substance-based income exclusion and the UPE safe harbour may reduce exposure for groups with genuine economic substance in Portugal or elsewhere in the EU.
On 11 September 2026, the OECD released an updated version of the GIR template for fiscal years beginning on or after 31 December 2025. Groups filing for FY2024 use the prior template; however, compliance teams should already be familiarising themselves with the updated form for the following cycle.
For a structured comparison of how these developments interact across EU member states, our Pillar Two Side-by-Side Package EU analysis provides a detailed jurisdiction-by-jurisdiction breakdown.
Who Is Affected in Portugal
The penalty-free window is directly relevant to any multinational enterprise group that meets both of the following conditions:
- Revenue threshold: the group has consolidated annual revenue of EUR 750 million or more in at least two of the four fiscal years immediately preceding the fiscal year under review.
- Portuguese nexus: the group has at least one constituent entity – a subsidiary, branch, permanent establishment, or other taxable presence – located in Portugal.
The filing obligation falls on the designated filing entity within the group, which may be the ultimate parent entity (UPE), a surrogate parent entity (SPE), or a local constituent entity where the UPE jurisdiction does not have a qualifying competent authority agreement in place. Portuguese-resident constituent entities of groups headquartered outside Portugal should verify their group's filing chain and confirm that no local Portuguese filing obligation has been triggered by default.
Groups that benefit from transitional safe harbours – in particular the transitional country-by-country report safe harbour – should still ensure that the conditions for reliance on those safe harbours are properly documented, as the AT may request supporting evidence in the context of a tax audit.
Immediate Action Items for International Companies
Given the proximity of the 30 September 2026 deadline, groups with Portuguese constituent entities should prioritise the following steps:
- Confirm filing responsibility: identify whether your group's designated filing entity has submitted the GIR, and whether any separate notification or local filing is required with the Autoridade Tributária e Aduaneira.
- Apply the Side-by-Side package: revisit GloBE computations in light of Commission Notice C/2026/253 and the updated OECD administrative guidance of 5 January 2026, including the UPE safe harbour and treatment of substance-based incentives.
- Document safe harbour reliance: if your group is relying on a transitional or permanent safe harbour, prepare and retain the underlying documentation now, ahead of any potential AT enquiry.
- Assess anti-avoidance exposure: review whether any Portuguese anti-avoidance rules or existing tax treaty positions interact with your GloBE computation, particularly where transfer pricing adjustments affect the effective tax rate at jurisdictional level.
- Plan for FY2025: the updated GIR template released on 11 September 2026 applies to fiscal years beginning on or after 31 December 2025. Compliance processes should be adapted before the next reporting cycle begins.
If your group is reviewing its GloBE position or requires assistance with the Portuguese filing process, our team is available to discuss your specific circumstances. You are welcome to reach out at info@ferrazwhitmore.com or visit our contacts page.
Tax Structuring and Risk Management Considerations
Pillar Two compliance does not sit in isolation from broader tax structuring and tax risk management decisions. The way in which a group has structured its operations in Portugal – including the use of holding vehicles, intra-group financing arrangements, and intellectual property location – will directly affect the computation of GloBE income and the jurisdictional effective tax rate. Groups that have optimised their Portuguese structures in reliance on domestic incentives or tax treaty benefits should assess whether those arrangements remain aligned with the GloBE framework as clarified by the Side-by-Side package.
Transfer pricing remains a central risk area. Adjustments made by the AT on audit can alter the GloBE effective tax rate for Portugal, potentially triggering top-up tax liability in another jurisdiction. Aligning transfer pricing documentation with GloBE computations is therefore an important element of an integrated tax risk management strategy.
Our tax structuring practice in Portugal advises on the interaction between existing structures and the Pillar Two framework, including the implications of the Side-by-Side safe harbours for groups with substantial operations in Portugal.
Corporate Law Dimensions
For groups with Portuguese subsidiaries, GloBE compliance also raises corporate governance considerations. Boards of Portuguese constituent entities may need to be informed of the group's Pillar Two position and filing arrangements, particularly where the subsidiary is separately regulated or where the AT's enquiries could give rise to local liability. Groups should ensure that their Portuguese entity management is aligned with the central compliance process and has access to adequate information. Our corporate law practice in Portugal can assist with governance structuring around these requirements.
Sources
- Irish Revenue – Pillar Two key dates: revenue.ie
- Order 76/2026-XXV of 3 June 2026 (Portugal – Autoridade Tributária e Aduaneira)
- Commission Notice C/2026/253 of 12 January 2026
- OECD/G20 Inclusive Framework – Side-by-Side package, approved 5 January 2026
- OECD – Updated GIR template, released 11 September 2026
- Facts last verified: 22 September 2026.
To discuss how these developments affect your group's Portuguese operations or to obtain assistance with GloBE filing and risk management, please contact us at info@ferrazwhitmore.com or through our contacts page.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.