27 May 2026 Portugal's Tax Authority explains impact on Portuguese companies of OECD's recent update regarding Pillar Two filings - On 25 May 2026, the Portuguese Tax Authority issued new information outlining how recently issued OECD guidance, addressing practical compliance and coordination issues arising in connection with the first filings under the Global Minimum Tax, should be implemented from a Portuguese perspective.
- On 18 May 2026, the OECD released updated guidance on Pillar Two filing obligations and timelines, intended to address the challenges arising from delays by jurisdictions in making fully operational filing portals available and in activating information exchange agreements with other jurisdictions.
- Although the new guidance tends to ease Pillar Two compliance with regard to the 2024 fiscal year, affected entities should assess the implications for their activity and consult their tax advisors to navigate the complexities of the Pillar Two tax regime effectively.
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The Portuguese Tax Authority released a supplementary tax information declaration (Declaration) on 25 May 2026, explaining how a recent Organisation for Economic Co-operation and Development (OECD) "common understanding" document on compliance and coordination issues arising in connection with the first filings under the Global Minimum Tax should be implemented in Portugal. On 18 May 2026 OECD published a document reflecting a common understanding among the jurisdictions implementing the Pillar Two rules (Regime do Imposto Mínimo Global or RIMG in Portugal), including Portugal, to support the submission and exchange of the Pillar Two Top-up Tax Information Return — i.e., the Global Anti-Base Erosion (GloBE) Information Return (GIR) — as provided for in subparagraph (b) of paragraph 1 of Article 45 of the RIMG. The Portuguese Tax Authority's Declaration cites "point three" of the OECD common understanding as particularly noteworthy for companies in Portugal. Point three states: In recognition of the compliance and co-ordination challenges that could arise from a jurisdiction's delay in making available a reliable filing portal or in activating exchange relationships, the 2024 Implementing Jurisdictions have agreed that they will use mechanisms, to the extent available under their respective domestic laws, in order to:- Waive penalties that might otherwise apply in respect of their local GIR filing obligations,
or - Not enforce their local GIR filing obligation before the relevant GIR exchange deadline,
where the GIR has been centrally filed in any one of the jurisdictions listed in the annex by the relevant filing deadline and the GIR notification has been filed in the local jurisdiction by the relevant deadline. The Declaration lays out steps to implement the common understanding in the Portuguese jurisdiction: - If the Modelo 62 form (i.e., for initial registration and as GIR notification form) relating to the 2024 fiscal year has already been submitted, indicating that the GIR will be centrally filed by the ultimate parent entity (UPE) of the multinational enterprise group (MNE Group) or by a designated entity in a jurisdiction other than Portugal, and that jurisdiction is not included in the annex to the common understanding, an amended Modelo 62 must be filed to indicate that the UPE or a designated entity in a jurisdiction included in the annex will centrally file the GIR by the legal deadline for filing the GIR (for fiscal years corresponding to the 2024 calendar year, this means by 30 June 2026).
- If the Modelo 62 relating to the 2024 fiscal year has not yet been submitted, it should be filed by the legal deadline for filing the GIR.
- In either situation (a) or (b) above, the GIR should also be timely filed in the jurisdiction indicated on the form and in accordance with the procedures described above, and this jurisdiction shall subsequently ensure the timely exchange of information with the other relevant jurisdictions, including Portugal.
- If a designated local entity files or amends the Modelo 62 in light of the above circumstances, the completion of the designation confirmation procedure provided for in Article 3 of Ordinance no. 290/2025/1, of 2 September, must be conducted — i.e., all other local entities must confirm the designation of the local filing entity within 15 days
- To amend the Modelo 62, the taxpayer must identify the correct form within the Portuguese Tax Authority's official website (Portal das Finanças), thereafter select "Substituir" and file a new return with the updated and accurate information.
Although the common-understanding document generally eases Pillar Two compliance with regard to 2024 fiscal year, it remains important for MNE Groups to be prepared for dealing with the underlying requirements. Affected entities should consult with their tax advisors for help with navigating these new updates and supporting Pillar Two compliance. | * * * * * * * * * * | | Contact Information | For additional information concerning this Alert, please contact: Ernst & Young, S.A., International Tax and Transaction Services | | Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor |
Document ID: 2026-1138 |
