Pillar 2: Minimum tax registration obligations at the end of the year 2024

The following applies to business units of corporate groups that are already subject to minimum tax or comparable foreign tax systems: For minimum taxation, various declaration and reporting obligations must be observed (minimum tax returns and GloBE Information Returns), which are regulated separately by law in each country that has introduced minimum taxation in accordance with the OECD GloBE Pillar II Model Rules. Currently and as a matter of urgency, some registration obligations must be observed in addition to the notification and declaration obligations. For some countries, the registrations must be completed by December 31, 2024 or promptly in the first quarter of 2025. Examples – not exhaustive – are listed below: 

Austria until December 31, 2024

If there are several Austrian business units in relation to the group of companies, it is recommended to agree that one of the Austrian business units be assigned in writing (as the party liable to pay the “Austrian minimum tax”) by the ultimate parent company and to submit a corresponding notification to the Austrian tax authorities by December 31, 2024 at the latest.

Contact: Iris Burgstaller (iris.burgstaller@tpa-group.at), Lukas Bernwieser (lukas.bernwieser@tpa-group.at) and Yasmin Wagner (yasmin.wagner@tpa-group.at) 

Hungary until December 31, 2024

Domestic companies are subject to a reporting obligation in relation to the multinational group of companies within 12 months from the beginning of the tax year starting in 2024. Based on the regu-lation, multinational enterprises applying the safe harbor rule for temporary country-by-country re-porting (CbCR) for Hungary are still obliged to comply with this reporting obligation.

The tax authority may impose a fine of up to HUF 5 million (approx. USD 13,000) on the companies concerned if the report is not submitted or is submitted late.
Taxpayers should determine which company is obliged to submit the report according to the Hun-garian Pillar II minimum tax regulations. For companies with a fiscal year corresponding to the cal-endar year, the required reporting date is December 31, 2024, according to the regulations set out in the Minimum Tax Act.

Contact: Jozsef Szemeredi (jozsef.szemeredi@tpa-group.hu) und Zoltan Barka (zoltan.baka@tpa-group.hu)

Germany until February 28, 2025

Pursuant to Art. 3 (4) of the German Minimum Tax Act (MinStG), a group taxpayer report must be submitted electronically via officially specified interfaces in accordance with the officially prescribed data set. The report identifies the group parent that owes the minimum tax to the tax office and submits the minimum tax return for the minimum tax group. According to the German Annual Tax Act 2024 (JStG 2024), a registration must also be submitted if only one business unit is domiciled in Germany. 

Generally, the group parent is the ultimate parent company if it is domiciled in Germany. If the ulti-mate parent company is not domiciled in Germany, the parent company domiciled in Germany is the group parent if it is the common parent company of all business units located in Germany. If neither of the two options applies, the ultimate parent company must determine the group parent. If the group parent has not been determined accordingly, it is determined by the tax authorities.

This report must be submitted two months after the end of the tax period. If the fiscal year corre-sponds to the calendar year, this would be February 28, 2025 for the 2024 financial year, provided the corporate group is already subject to the minimum tax liability.

Contact: Ines Paucksch 

Get in touch with our national contacts in the international Baker Tilly network. All relevant information on the Global Minimum Tax / Pillar 2 can also be found here.