On 28 May 2026, the OECD/G20 Inclusive Framework on BEPS published the 2026 Consolidated Commentary to the Global Anti-Base Erosion (GloBE) Model Rules, compiling the original March 2022 Commentary and all agreed administrative guidance issued between March 2022 and January 2026 into a single refere
BRUSSELS | 1 JUNE 2026
OECD Publishes Consolidated Commentary to the GloBE Model Rules
On 28 May 2026, the OECD/G20 Inclusive Framework on BEPS published the 2026 Consolidated Commentary to the Global Anti-Base Erosion (GloBE) Model Rules, compiling the original March 2022 Commentary and all agreed administrative guidance issued between March 2022 and January 2026 into a single reference document. The publication forms part of the broader Pillar Two implementation framework and serves as the principal interpretative document for jurisdictions that have introduced, or are preparing to introduce, GloBE-based minimum tax rules. It supersedes earlier consolidated commentaries by incorporating all agreed guidance issued up to January 2026 into a single document. The 456-page Commentary reflects the extensive technical guidance developed since the introduction of the GloBE Rules and incorporates clarifications covering areas such as scope, the operation of the Income Inclusion Rule (IIR) and Undertaxed Profits Rule (UTPR), the calculation of GloBE income and covered taxes, effective tax rate calculations, corporate restructurings, investment entities, safe harbours, filing obligations, and transition rules. The document also incorporates guidance on Qualified Domestic Minimum Top-up Taxes (QDMTTs), permanent safe harbours, transitional relief measures, and the treatment of tax credits and deferred tax adjustments. The OECD states that the consolidated text is intended to promote a consistent and common interpretation of the GloBE Rules across implementing jurisdictions and to support coordinated outcomes under the Inclusive Framework’s “common approach”. The Commentary emphasises the importance of consistent implementation in order to minimise risks of double taxation, over-taxation, and divergent application of the rules. It also includes updated guidance on currency conversion, monetary thresholds, and administrative coordination mechanisms designed to support the operation of the global minimum tax framework.
AG Kokott Issues Opinion on Abuse Threshold Under Parent-Subsidy Directive in Case C-203/25
Advocate General Kokott recently delivered her Opinion in Case C-203/25, Neo Group a Lithuanian case concerning the application of the anti-abuse rule in the Parent-Subsidiary Directive to cross-border dividend distributions. The case arose after the Lithuanian tax authorities denied withholding tax exemption on dividends paid by a Lithuanian subsidiary to its Cypriot parent company, arguing that the dividends formed part of a broader arrangement ultimately benefiting the individual controlling shareholder. In the opinion, Advocate General Kokott opines that abuse under Article 1(2) of the Parent-Subsidy Directive may, in exceptional circumstances, exist even where the immediate recipient of the dividends is a genuine parent company carrying on real economic activity and acting as the beneficial owner of the dividends. According to the Opinion, the fact that the intermediary parent company is not a mere conduit does not automatically preclude a finding of abuse if the dividend flows form part of a wider non-genuine arrangement aimed at securing a tax advantage contrary to the objectives of the Directive. The AG Opinion also draws an important distinction between ordinary upstream dividend distributions within a corporate group and arrangements designed to achieve unlawful non-taxation. AG Kokott suggests that neither the rapid onward distribution of dividends nor a correspondence between dividend amounts received and subsequently distributed is, in itself, sufficient to establish abuse. Instead, a comprehensive assessment of all relevant facts and circumstances is required to determine whether a non-genuine arrangement exists. The Opinion also addresses the territorial scope of the Parent-Subsidy Directive anti-abuse rule. AG Kokott takes the view that a Member State may, in principle, apply the anti-abuse provision even where the allegedly abusive transactions occur in another Member State, provided that the overall arrangement is directed towards obtaining a tax advantage that defeats the purpose of the Directive. However, she questions whether one Member State should deny benefits under the Directive solely on the basis of an alleged abuse of another Member State’s domestic tax system, highlighting concerns regarding legal certainty and the proper allocation of taxing powers within the EU. The Court's decision in the case may clarify the relationship between beneficial ownership, economic substance and the Parent-Subsidy Directive's general anti-abuse rule. If followed by the Court, the Opinion could influence future disputes concerning dividend withholding tax exemptions, intermediary holding structures and the evidential threshold required for Member States to establish abuse in cross-border group arrangements.
FISC Hearing on Reverse Charge Mechanism in Fight Against VAT Fraud
Tomorrow, the European Parliament Subcommittee on Tax Matters, FISC, willl hold a public hearing examining the role of the reverse charge mechanism in combating VAT fraud within the EU VAT system, with a particular focus on Missing Trader Intra-Community (MTIC) fraud. The discussion will assess the operation of the mechanism under Articles 199a and 199b of the VAT Directive, which are currently due to expire on 31 December 2026, including its effectiveness, possible design improvements, and whether the measures should be extended beyond the current deadline. The hearing will also consider broader implications for the EU VAT framework and ongoing efforts to strengthen tax compliance and tackle cross-border fraud. The FISC Subcommittee will also discuss a draft own-initiative report on the EU’s approach to corporate tax policy in a changing international environment. The report examines the implications of the OECD/G20 Inclusive Framework agreement reached at the end of 2025 on a “Side-by-Side approach” to minimum taxation. It highlights continuing challenges for the EU corporate tax framework despite the agreement, including concerns regarding EU competitiveness and the need for simplification and greater legal clarity. The draft report also calls on the European Commission and Member States to strengthen international cooperation to address base erosion and profit shifting practices and notes the continuing need for an international solution for the taxation of the digitalised economy. The FISC agenda also includes further consideration of amendments to the draft report on the feasibility of a “28th tax regime” to support EU competitiveness, prepared by rapporteur Ľudovít Ódor (Renew), followed by an in camera Coordinators’ meeting.
OECD Examines Impact of Corporate Taxation on Business Dynamism
The OECD has published a new policy brief examining the relationship between corporate income taxation and business dynamism, against the backdrop of growing concerns about declining rates of firm entry, innovation and productivity growth. The report finds that lower CIT rates can encourage business creation, particularly among smaller and younger firms, although the size of this effect remains uncertain. Firm exit appears less responsive to tax rates and is more closely linked to competitive market forces. The OECD also highlights that tax compliance burdens and complexity can represent significant barriers to entry for new and small businesses, suggesting that simplification measures may support entrepreneurship. The report notes that CIT provisions can either alleviate or exacerbate financing constraints faced by younger firms. While targeted tax measures can help reduce cash-flow pressures, the OECD emphasises that tax policy is not the primary instrument for addressing access to finance challenges. The analysis also finds that tax incentives for investment and innovation can support business dynamism, particularly where R&D tax incentives are refundable or include carry-forward provisions that enable loss-making start-ups to benefit. However, poorly designed incentives may strengthen the position of incumbent firms and distort competition. The OECD further examines the role of loss offset provisions, finding that restrictions on loss utilisation can discourage risk-taking and create a bias against start-up investment, as younger firms are more likely to be loss-making in their early years. At the same time, excessively generous loss relief may encourage overinvestment in risky activities or delay the exit of persistently unproductive firms. The report therefore stresses the importance of balancing support for entrepreneurship with measures that preserve efficient market selection. Finally, the OECD observes that larger firms are often better positioned to benefit from tax incentives and tax planning opportunities, potentially conferring competitive advantages over smaller competitors. The report concludes that while CIT design can influence business dynamism, policymakers should also consider the role of other taxes and broader financial market policies, including measures that support capital formation and entrepreneurship through deeper household savings and investment markets.
CFE Webinar "Tax Advisers in the Age of AI" : 9 June 2026
CFE Tax Advisers Europe will host a webinar on 9 June 2026 examining the growing role of artificial intelligence in the tax profession and the practical implications of emerging EU AI regulation for tax advisers. The online event, entitled “Tax Advisor in the Age of AI”, will bring together speakers from the CFE Tax Technology Committee and Professional Affairs Committee to discuss how AI technologies are reshaping advisory work, professional responsibilities and compliance obligations. The webinar will provide an overview of both the opportunities and risks associated with AI tools in tax advisory practice, and the broader transformation of the profession. The webinar will also examine means to manage use of AI in the profession, and the recently publishedCFE Charter of Tax Advisers Rights and Obligations in an AI-Influenced Tax-Advisory Environment.The Charteraddresses the responsible use of AI within legal and tax advisory services and the legal obligations arising under the EU AI Act, including transparency requirements where AI tools are used and obligations relating to staff training and risk awareness. The event forms part of CFE’s broader work on digitalisation and the future of the tax profession, and will be the first in a series of digital events examining developments affecting tax advisers. The webinar will take place online on 9 June 2026 at 4:00 PM CEST. Further details and registration information can be found here.
The selection of the remitted material has been prepared by: Dr. Aleksandar Ivanovski & Brodie McIntosh
Fonte: CFE Tax Advisers Europe. Pubblicazione originale del 2026-06-01.