News on CompPress | Transfer Pricing Resources

Germany Issues Draft Regulation Listing Jurisdictions With Qualifying Pillar Two Status

Wed, 08 Apr 2026 00:00:00 +0000

On April 8, 2026, Germany issued a Draft Regulation including a list of jurisdictions that hold qualifying status for the purposes of the Income Inclusion Rule (IIR), the Undertaxed Profits Rule (UTPR), the Qualified Domestic Minimum Top-up Tax (QDMTT) and the QDMTT Safe Harbour under the German implementation of the OECD Pillar Two GloBE rules.

The list serves a practical administrative function: under the GloBE framework, the operation of the IIR, UTPR and QDMTT depends on whether the relevant jurisdiction’s domestic regime has been recognized as qualifying. Germany’s Draft Regulation provides authoritative guidance to German-headquartered MNE groups and to German subsidiaries of foreign MNE groups on which jurisdictions can be relied upon for QDMTT Safe Harbour purposes and which jurisdictions’ IIR and UTPR will be respected.

Switzerland Issues Communications Implementing OECD January 2025 and 2026 Administrative Guidance

Tue, 07 Apr 2026 00:00:00 +0000

The Swiss Federal Tax Administration issued Communications 030-E-2026-f and 031-E-2026-f on April 7, 2026, applying the OECD’s January 2025 and January 2026 Administrative Guidance on the Pillar Two GloBE rules to the Swiss domestic implementation. The Communications adopt the Inclusive Framework’s interpretations of the GloBE rules into Swiss administrative practice for the purposes of the Swiss Qualified Domestic Minimum Top-up Tax and the operation of the IIR and UTPR.

The January 2026 Administrative Guidance includes the Side-by-Side package agreed by the Inclusive Framework on January 5, 2026, which addresses the application of the GloBE rules to US-headquartered MNE groups and recognizes the US tax system as a Qualified Side-by-Side Regime in defined circumstances. Switzerland’s adoption of this guidance brings the Swiss Pillar Two regime into alignment with the latest international consensus and provides administrative certainty for MNE groups with Swiss operations.

OECD Publishes Third Batch of Updated Transfer Pricing Country Profiles

Fri, 16 Jan 2026 00:00:00 +0000

The OECD published the third batch of updated transfer pricing country profiles on January 16, 2026, continuing the rolling update programme that began with the first batch in 2023 and the second batch released on October 22, 2025. The country profiles set out the legislative and administrative position of each participating jurisdiction on key transfer pricing topics.

The latest update extends coverage of two areas that have been progressively built into the country profile template. The first is the application of the Hard-to-Value Intangibles (HTVI) approach under Chapter VI of the OECD Transfer Pricing Guidelines. The second is the implementation of the simplified and streamlined approach to baseline marketing and distribution activities under Pillar One Amount B, which jurisdictions can elect to apply for fiscal years beginning on or after January 1, 2025.

OECD Inclusive Framework Agrees Side-by-Side Package on Pillar Two

Mon, 05 Jan 2026 00:00:00 +0000

The OECD/G20 Inclusive Framework on BEPS announced on January 5, 2026 that its members have reached agreement on a Side-by-Side package addressing the application of the Global Anti-Base Erosion (GloBE) rules to US-headquartered multinational groups. The package is designed to provide stability and certainty in the operation of Pillar Two by recognizing the US tax system as a Qualified Side-by-Side Regime in defined circumstances.

Under the agreement, US-headquartered MNE groups are exempt from the Income Inclusion Rule and the Undertaxed Profits Rule for fiscal years beginning on or after January 1, 2026, where the relevant conditions are satisfied. The package also includes material simplifications and greater alignment of substance-based tax incentives with qualified refundable tax credits. The Administrative Guidance is expected to be incorporated into the Commentary to the GloBE Model Rules in due course.

GILTI Renamed to NCTI Under One Big Beautiful Bill Act; Effective Rate Reset for 2026

Mon, 15 Dec 2025 00:00:00 +0000

The One Big Beautiful Bill Act of 2025 (OBBBA), enacted in July 2025, renames the Global Intangible Low-Taxed Income (GILTI) regime as Net CFC Tested Income (NCTI) and modifies the operative parameters of the regime for tax years beginning after December 31, 2025. The rename is more than cosmetic: the OBBBA also resets the Section 250 deduction percentage and the effective US tax rate on the inclusion.

For NCTI inclusions in tax years beginning after December 31, 2025, the Section 250 deduction is set at 40%. Combined with the headline 21% US corporate tax rate, this produces an effective US tax rate of approximately 12.6% on NCTI inclusions, before consideration of the foreign tax credit and the post-OBBBA expense allocation rules. The 90% foreign tax credit rate (i.e., the 10% haircut) on NCTI-related foreign taxes continues to apply, as do the rules requiring the allocation of a portion of US-incurred expenses against the NCTI basket.