Tax

Business at OECD Welcomes the Common Understanding and Urges Meaningful Relief During the Initial Compliance Period

Published on 20/05/2026

Business at OECD welcomes the OECD’s document setting out the common understanding among 2024 implementing jurisdictions to support the central filing and exchange of GloBE Information Return (GIR) information for the 2024 reporting fiscal year. Business at OECD appreciates the acknowledgement of the significant operational challenges currently faced by both tax administrations and businesses as implementation deadlines approach. While Business at OECD notes the expectation that participating jurisdictions will be fully operational for central filing by 31 May 2026, Business at OECD remains concerned by the observed lack of readiness in several regions. With the 30 June 2026 filing deadline imminent, this gap increases the risk of compliance friction.

The effectiveness of this approach will ultimately depend on whether jurisdictions can give practical effect to these commitments in the coming weeks. Without fully operational filing systems, businesses remain concerned about exposure to potential penalties despite acting in good faith. It is therefore imperative that countries continue to operationalise filing systems urgently to avoid unintended consequences. As operational challenges on the part of tax administrations should not disadvantage taxpayers, penalty waivers and the ability to avail of GloBe elections and Safe Harbours for taxpayers are essential to avoid unnecessary disputes and administrative burden.

Finally, Business at OECD is concerned by jurisdictions that have not adopted or have only partially implemented this common understanding. This fragmentation undermines the objective of a simplified global filing framework, and creates a “patchwork” of requirements. For multinational groups, this results in disproportionate administrative burdens, requiring navigation of divergent rules, formats, and deadlines, and increasing compliance costs and risks.

While we, in the business community, appreciate the coordination, aligned messaging, and response to concerns, Business at OECD strongly urges all jurisdictions to align with the intended spirit of the common understanding to provide meaningful relief during this initial compliance period.

For further information, please contact:

Business at OECD

Max Jablonowski, Communications Manager (jablonowski@biac.org)

About Business at OECD

Established in 1962, Business at OECD (BIAC) stands for policies that enable businesses of all sizes to contribute to growth, economic development, and societal prosperity. Through Business at OECD, national businesses and employers’ federations representing over 10 million companies provide and receive expertise via our participation with the OECD and governments promoting competitive economies and better business.