OECD publishes common understanding on GIR filing relief, clarifies UTPR Safe Harbour

The OECD has released a common understanding agreed by jurisdictions that implemented the global minimum tax (GMT) with effect from 2024, aimed at mitigating delays in the availability of fully operational filing portals or in the establishment of exchange relationships for the GloBE Information Return (GIR) ahead of forthcoming filing deadlines.  

Under this understanding, jurisdictions will publish a list of those expected to have a fully operational GIR filing portal by 31 May 2026, and will rely on available domestic mechanisms to waive penalties or suspend enforcement of local GIR filing obligations, where the GIR has been centrally filed in a listed jurisdiction prior to the relevant GIR exchange deadline.  

The OECD has also updated the GMT Central Record, confirming that 44 jurisdictions have completed the qualification process for the income inclusion rule and 50 for DMTTs/QDMTT safe harbours, with additional jurisdictions (including the Bahamas, Kenya, Kuwait and Oman) recently added.  

Separately, the OECD issued a new guidance confirming that MNE groups with 53-week fiscal years having their ultimate parent entity (UPE) in a jurisdiction that is eligible both for the Transitional UTPR Safe Harbour and then for the Side-by-Side (SbS) Safe Harbour or the UPE Safe Harbour, remain eligible for the Transitional UTPR Safe Harbour until the new safe harbour regimes apply from 2026, thereby closing a technical gap.  

By way of background, the Transitional UTPR Safe Harbour (agreed in July 2023) provides relief by deeming the UTPR top-up tax in the UPE jurisdiction to be zero for fiscal years of up to 12 months beginning on or before 31 December 2025 and originally ending before 31 December 2026. Nevertheless, an issue arose for MNE groups that use 53-week accounting years because a 53-week fiscal year may begin on or before 31 December 2025 but end after 31 December 2026, meaning it would fall outside the original safe harbour period. To address this, the guidance extends the end date to 3 January 2027, ensuring such fiscal years remain covered. 

The announcement is accessible here.  

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