Pillar Two: current status of exchange of information from GloBE Information Returns
In September, the Chamber of Deputies will continue debating the proposed amendment to the Act on International Cooperation in Tax Administration. Among other matters, the amendment sets out the conditions for the automatic exchange of information contained in GloBE Information Returns with EU member states, transposing DAC9, and with non-EU jurisdictions that have signed the Multilateral Competent Authority Agreement on the Exchange of GloBE Information Returns (GIR MCAA).
The purpose of DAC9 and the multilateral agreement is to simplify the filing of GloBE Information Returns (GIRs) under Pillar Two through the automatic exchange of information contained in GIRs.
Under the simplified regime, a group may file a single GloBE Information Return centrally in one jurisdiction for the entire group. The information will then be shared automatically with the tax authorities in the other jurisdictions in which the group operates and which apply the Pillar Two rules. Instead of filing separate GloBE Information Returns, the group’s constituent entities in those jurisdictions will only submit a notification identifying in which jurisdiction and by which entity the return was filed. We have previously discussed DAC9 here.
As many jurisdictions that had implemented the Pillar Two rules, including the Czech Republic, had not incorporated an automatic information exchange mechanism into their legislation by 30 June 2026 (the deadline for the first-time filing of GloBE Information Returns for 2024), returns and notifications were filed under an OECD arrangement as if the legal framework for the exchange were already in place; this was subject to the condition that the information would be exchanged by 31 December 2026. We have previously discussed this topic here.
No exchange of information without the amendment
Adoption of the amendment is therefore essential not only to meet the above condition as regards the 2024 GloBE Information Returns but also to ensure that the simplified information exchange arrangements remain available for filings made after 30 June 2026, e.g., by groups whose financial year began after 1 January 2024 and whose filing deadline ends after 30 June 2026.
While it is reasonable to assume that the OECD arrangement could also apply to filings due after 30 June 2026, there is no doubt that the simplified regime is conditional upon the exchange of information taking place by 31 December 2026. Such an exchange can occur only if the amendment is adopted as soon as possible. If the information is not exchanged by that date, Czech constituent entities will be required to file a GloBE Information Return in respect of the Czech jurisdiction, thereby providing the Czech tax administration with information it would otherwise receive through international exchange.
The draft amendment has so far passed its first reading in the Chamber of Deputies and will now be considered by the relevant parliamentary committee (provisionally scheduled for 2 September 2026). Only then can it proceed to its second reading. Given the statutory legislative time limits, however, the act is unlikely to take effect before October 2026.