The glossary to understand and take action

Pillar 2 — effective minimum taxation

Pillar 2 establishes effective minimum taxation for groups within its scope, according to specific calculation and reporting rules.

Notion comptable, fiscale ou juridique · Luxembourg Fiduciaries Editorial Team · Reviewed on

Understand the scope

Definition and points to distinguish

It does not correspond to a uniform rate applied to all businesses. The group perimeter, exclusions, calculations and transitional measures require a dedicated analysis.

In your file

What this changes in practice

Pillar 2 is based on a calculation of effective minimum taxation for groups within its scope. It does not correspond to applying a simple rate to the accounting profit of every company. Group data, adjustments and allocation by jurisdiction are essential. The identification of the entities concerned, reporting obligations and data-collection responsibilities must be anticipated with the group.

A scenario to help you understand

Educational example

A Luxembourg subsidiary belongs to an international group. It asks whether it falls within the scope and what data it must provide, rather than deciding solely on the basis of its individual turnover.

Fictitious situation, presented to illustrate the concept.

Prepare for what comes next

Points to check

  • Vérifier le périmètre du groupe
  • Identifier les données et ajustements requis
  • Coordonner calculs et obligations déclaratives

The practical question

Find out more

Pourquoi le calcul du Pilier 2 ne se limite-t-il pas au taux nominal d’impôt ?

L’imposition effective repose sur des données et ajustements spécifiques et s’apprécie dans le cadre du groupe concerné. Le taux affiché dans un pays ne permet donc pas de conclure seul. La filiale doit coordonner ses données avec le groupe et identifier ses obligations locales, même si le calcul principal est organisé à un autre niveau.

Connecting concepts

Terms to know as well

Continue with the concepts, contacts and procedures related to this topic.

Corporate taxationCorporate taxation encompasses the taxation and filing rules applicable to a company and its transactions.Tax returnA tax return provides the administration with the information needed to assess or verify a tax for a given person and period.Transfer pricingTransfer pricing concerns the terms of transactions between related companies and their assessment under the arm's length principle.Reserved alternative investment fund (RAIF / FIAR)The RAIF, or FIAR in French, is a fund governed by a specific Luxembourg regime, with conditions specific to investors and its organisation.Alternative investment fund manager (AIFM / GFIA)The AIFM, referred to as GFIA in French, manages alternative investment funds in accordance with the framework applicable to it.Professional of the financial sector (PSF)A professional of the financial sector (PSF) is subject to a regulated status corresponding to a category of activities and the required authorisations.

Put it into practice

Explore further with our guides

Practical guideInvestment funds: understanding the roles before choosing a service provider

Sources and verification

References consulted on 20 September 2026. Official procedures specify the applicable conditions and exceptions.

This guide explains a general process. The applicable rules depend on your situation; it does not constitute personalised advice. Report a correction.

A definition gives you a reference point. To examine your situation, clarify your question with a professional.