For multinational enterprise groups within scope of the EU Minimum Tax Directive (2022/2523), compliance with Pillar Two involves three distinct filing obligations – registration, the GloBE Information Return (GIR), and top-up tax returns – each governed by national implementing rules that vary across Member States. The first GIR cycle, covering fiscal year 2024, was due by 30 June 2026 in most EU jurisdictions, though several countries – including France, Portugal, and Belgium – have announced extensions into the autumn of 2026. Understanding the precise sequencing of these obligations, and the country-specific variations now in force, is essential to avoid penalties and preserve your group's compliance standing.
Legal Basis and Scope of the Directive
The Minimum Tax Directive (EU) 2022/2523, transposing the OECD/G20 Pillar Two model rules into EU law, applies to constituent entities of groups whose consolidated annual revenue equals or exceeds EUR 750 million in at least two of the four fiscal years preceding the filing year. The Directive requires Member States to implement three charging mechanisms: a Qualified Domestic Minimum Top-up Tax (QDMTT), an Income Inclusion Rule (IIR), and an Undertaxed Profits Rule (UTPR). Each mechanism may carry its own registration and return obligations under national law.
On 5 January 2026, the OECD/G20 Inclusive Framework approved the Side-by-Side package, introducing UPE safe harbours, simplifications for substance-based incentives, and clarifications on the treatment of substance-based income exclusions. The European Commission confirmed in Notice C/2026/253 (12 January 2026) that these developments apply under the existing Directive framework, meaning groups relying on transitional safe harbours should revisit their positions in light of the updated guidance.
On 11 September 2026, the OECD released an updated GIR template applicable to fiscal years beginning on or after 31 December 2025. Groups planning their FY2025 compliance cycle should account for this revised format in their data-gathering and system configuration work now.
The Three Filing Obligations: An Overview
Pillar Two compliance typically involves three sequential steps, though the precise forms, deadlines, and filing agents differ by jurisdiction.
- Registration (notification): Many Member States require constituent entities – or a designated filing entity – to notify the tax authority of their group's scope and the filing structure before submitting substantive returns. This step establishes which entity will act as the local or central filer.
- GloBE Information Return (GIR): A comprehensive data return covering the group's effective tax rate calculation, jurisdictional blending, and safe harbour elections. It is ordinarily filed centrally by the Ultimate Parent Entity (UPE) or a designated filing constituent entity, with automatic exchange of information between competent authorities. Where exchange does not occur within the statutory window, local filing may be required.
- Top-up tax return and payment: A separate return calculating and settling any IIR or QDMTT liability arising in the relevant jurisdiction. Payment deadlines are typically aligned with, or shortly follow, the top-up tax return deadline.
Groups should map each obligation across every jurisdiction in which they have constituent entities, since a failure in one country can trigger local filing requirements or penalties even where the central filing is otherwise complete. Sound tax structuring at the outset of a compliance programme materially reduces the risk of overlooked obligations.
Country-by-Country Deadlines: Key EU Jurisdictions
The following reflects the position as verified on 22 September 2026. Deadlines marked as extended are subject to the specific conditions issued by each authority; groups should confirm the precise terms with local counsel.
| Jurisdiction | Implementing Law | Registration / Notification | GIR Deadline (FY2024) | Top-up Tax Return / Payment |
|---|---|---|---|---|
| Portugal | Order 76/2026-XXV of 3 June 2026 | Not covered by the extension; subject to national rules | Without penalties until 30 September 2026 (for fiscal years ended 31 Dec 2024 – 31 Mar 2025) | Declarations without additions or penalties until 30 September 2026 |
| Spain | Law 7/2024; Order HAC/1198/2025 (29 Oct 2025) | Form 240 (registration) | Form 241 (GIR); deadline subject to national rules | Form 242 (top-up tax return); QDMTT and IIR from FY ending 31 Dec 2023; UTPR from FY ending 31 Dec 2024 |
| France | National implementing legislation | Subject to national rules | Extended to 1 September 2026 (announced 8 July 2026) | Extended to 1 September 2026, including payment of top-up tax |
| Italy | National implementing legislation | Subject to national rules | 30 June 2026 (central filing); MEF guidance of 22 June 2026 permits central filing through a designated entity in an exchanging jurisdiction | If exchanged data are not received by 31 December 2026, Italian entities must file locally within one month of that date |
| Belgium | National implementing legislation | Subject to national rules | GIR notification extended to 30 September 2026 | Subject to national rules |
For jurisdictions not listed above, the general position under the Directive is that the GIR for FY2024 was due by 30 June 2026. Groups with constituent entities in Member States that have not announced extensions should treat that date as the operative baseline unless they have received specific guidance from the relevant authority.
Step-by-Step Compliance Process
Approaching Pillar Two compliance as a sequenced project, rather than a single filing event, substantially reduces the risk of procedural errors that attract scrutiny during a tax audit.
Step 1 – Scoping and Group Mapping
Confirm whether the group meets the EUR 750 million revenue threshold. Identify every constituent entity by jurisdiction, including entities that may be in scope for UTPR purposes even where the group has no IIR liability in that country. Document the ownership chain to establish which entity is the UPE and whether a surrogate parent entity (SPE) designation is appropriate or required.
Step 2 – Designation of the Filing Entity
Determine whether central filing will be handled by the UPE, an SPE, or a local designated filing constituent entity. The choice has practical implications for data flows, power-of-attorney arrangements, and the risk of local filing fallback – as illustrated by the Italian MEF guidance of 22 June 2026, which conditions the validity of central filing on successful exchange of information by 31 December 2026.
Step 3 – Registration Filings
Complete any required registration or notification filings in each jurisdiction before the first substantive return is due. In Spain, this means filing Form 240. In Portugal, note that the penalty-free extension under Order 76/2026-XXV does not cover registration declarations; those remain subject to their ordinary deadline. In jurisdictions where registration deadlines have not been publicly stated, obtain written confirmation from the competent authority or local counsel.
Step 4 – Data Gathering and GIR Preparation
The GIR requires granular data at both the entity level and the jurisdictional level, including covered taxes, adjusted pre-tax income, payroll costs, and asset values for substance-based income exclusion purposes. Transfer pricing adjustments, deferred tax positions, and the treatment of substance-based incentives following the January 2026 Side-by-Side package all require careful analysis before the GIR is assembled. Groups should also account for the updated GIR template released on 11 September 2026 when preparing for FY2025 onwards.
Step 5 – Safe Harbour Elections
The transitional CbCR safe harbour and the Transitional UTPR Safe Harbour remain available for qualifying jurisdictions in the first years of implementation. The Side-by-Side package, confirmed by Commission Notice C/2026/253, introduced additional UPE-level safe harbours. Each election must be made in the GIR and is irrevocable for the relevant fiscal year; errors here are a common source of post-filing disputes. Advice on safe harbour eligibility intersects directly with broader corporate law considerations, particularly where group restructuring or M&A activity has altered the entity map.
Step 6 – Top-up Tax Return and Payment
Where a top-up tax liability arises under the IIR or QDMTT, a separate return and payment are required in the relevant jurisdiction. In France, both the return and payment were extended to 1 September 2026. In other jurisdictions, payment deadlines may differ from return deadlines; late payment typically attracts interest under the applicable national anti-avoidance rules framework, and in some cases automatic penalty loadings.
Step 7 – Post-Filing Monitoring
Pillar Two rules are subject to ongoing administrative guidance from the OECD Inclusive Framework, the European Commission, and national authorities. Groups should monitor updates – including any further guidance from the CJEU on the Directive's interpretation – and retain sufficient documentation to support positions taken in the GIR in the event of a tax audit. The OECD Pillar Two tracker maintained at oecdpillars.com provides a useful reference for tracking national implementation developments.
If your group's compliance programme is still being structured, the team at Ferraz & Whitmore is available to discuss the applicable obligations across relevant jurisdictions. You may reach us at info@ferrazwhitmore.com or through our contacts page.
Common Errors by Foreign-Headquartered Groups
Clients based outside the EU frequently encounter the same categories of difficulty when approaching Pillar Two compliance for the first time.
- Treating the GIR as the only obligation: Many groups focus on the GIR and overlook registration declarations, which in some jurisdictions – notably Spain with Form 240 – have separate deadlines and are not covered by extensions granted for substantive returns.
- Assuming the central filing extinguishes local obligations: The Italian MEF guidance of 22 June 2026 makes clear that if the competent authority exchange mechanism does not deliver the data to the Italian tax authority by 31 December 2026, Italian constituent entities face a local filing obligation within one month. Groups relying on central filing in exchanging jurisdictions must monitor the exchange process actively.
- Misidentifying the UPE or SPE: Complex group structures, particularly those involving investment funds or intermediate holding companies in jurisdictions with their own implementing rules, can make UPE identification non-obvious. Errors here can invalidate safe harbour elections and trigger penalties.
- Inadequate transfer pricing documentation alignment: The GIR draws on data that must be consistent with the group's existing transfer pricing documentation. Discrepancies attract scrutiny and can undermine safe harbour positions.
- Ignoring UTPR exposure in jurisdictions where the group has no operations: A constituent entity located in a jurisdiction that has enacted the UTPR may be subject to top-up tax charges attributable to undertaxed profits in low-tax jurisdictions elsewhere in the group – even where the group has no substance in the charging jurisdiction beyond a treasury or holding entity.
- Failing to update for the Side-by-Side package: The January 2026 OECD package and Commission Notice C/2026/253 introduced material changes to the treatment of substance-based incentives and UPE-level safe harbours. Groups that modelled their positions before January 2026 should reassess whether their original analysis remains valid.
- Overlooking tax treaty interactions: While Pillar Two is designed to operate above existing tax treaty networks, interactions with specific treaty provisions – particularly those relating to permanent establishments, dividend withholding, and tax sparing – require case-by-case review.
Documents Typically Required
The documentary requirements for a complete Pillar Two compliance cycle vary by jurisdiction, but groups should ordinarily assemble and retain the following.
- Consolidated financial statements for the relevant fiscal year, prepared in accordance with an acceptable accounting standard
- Entity-by-entity profit and loss accounts and tax charge computations
- Country-by-Country Report (for the transitional CbCR safe harbour analysis)
- Deferred tax schedules and covered taxes analysis by constituent entity
- Payroll and net book value data for substance-based income exclusion calculations
- Evidence of ownership chain, UPE designation, and any SPE appointment
- Written safe harbour elections and supporting eligibility analysis
- Correspondence with competent authorities regarding central filing arrangements
- National registration filings (e.g. Form 240 in Spain) and confirmation receipts
Key Timelines at a Glance
For planning purposes, and based solely on confirmed information as at 22 September 2026, the following dates are the most operationally significant for the FY2024 cycle in the jurisdictions covered by this guide.
- 30 June 2026: Standard GIR deadline in most EU Member States; central GIR filing deadline in Italy
- 1 September 2026: Extended GIR and top-up tax return deadline in France (including payment)
- 30 September 2026: Portugal penalty-free filing window closes for fiscal years ended 31 Dec 2024 – 31 Mar 2025; Belgium GIR notification deadline
- 31 December 2026: Deadline by which Italian authorities must receive exchanged GIR data before local filing obligation is triggered
- Within one month of 31 December 2026: Italian local filing deadline if exchange data not received
- FY2025 onward: Updated OECD GIR template (released 11 September 2026) applies to fiscal years beginning on or after 31 December 2025
Tax risk management for Pillar Two is not a single-year exercise. Groups should begin building their FY2025 compliance infrastructure now, incorporating the updated GIR template and any further guidance that emerges from the OECD Inclusive Framework, the European Commission, and national implementing authorities. Monitoring resources such as the OECD Pillar Two tracker at oecdpillars.com and the updated GIR analysis published at Ferraz & Whitmore's OECD GIR alert page can help groups stay current without dedicating disproportionate internal resource to monitoring.
If you have questions about how the compliance calendar applies to your group's specific entity structure or wish to discuss the interaction between Pillar Two obligations and existing arrangements, please contact our team at info@ferrazwhitmore.com or visit our contacts page to arrange a consultation.
Decision Checklist for In-Scope Groups
Use this checklist as an internal governance tool before submitting any Pillar Two filing.
- Has the group confirmed its revenue threshold position for each of the four preceding fiscal years?
- Has a complete constituent entity map been prepared, including entities in non-EU jurisdictions?
- Has the UPE been correctly identified, and has any SPE designation been formally documented?
- Have all required registration or notification filings been submitted in each jurisdiction, separately from the GIR?
- Has the group assessed eligibility for the transitional CbCR safe harbour and any new safe harbours introduced by the Side-by-Side package?
- Have safe harbour elections been made and documented in the GIR where applicable?
- Is the data underlying the GIR consistent with the group's transfer pricing documentation and CbCR?
- Where central filing is relied upon in Italy, is there a process to monitor receipt of exchanged data before 31 December 2026?
- Have UTPR exposure positions been assessed in all jurisdictions where the UTPR has been enacted?
- Has the group confirmed any applicable extensions (France: 1 September 2026; Portugal: 30 September 2026; Belgium: 30 September 2026) and verified that its specific fiscal year falls within the extension's scope?
- Is the group prepared for the updated GIR template for FY2025 filings?
- Have relevant ESMA or EBA reporting obligations been considered for regulated entities within the group that may have parallel disclosure requirements related to tax transparency?
Sources
- Irish Revenue – Pillar Two key dates: revenue.ie
- OECD Pillar Two developments tracker 2026: oecdpillars.com
- Deloitte tax@hand – France Pillar Two GIR filing deadline extended: taxathand.com
- Regfollower – Italy updates Pillar Two guidance with GIR filing rules: regfollower.com
Facts last verified: 22 September 2026. Pillar Two rules and national implementing measures are subject to ongoing revision; groups should verify current deadlines and requirements with qualified counsel in each relevant jurisdiction.
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.