Pillar Two in Liechtenstein (april 2026): Safe‑harbour Top‑up Calculations & Compliance Checklist

Liechtenstein’s April 2026 amendment to its GloBE legislation marks a pivotal moment for multinational enterprise (MNE) groups with constituent entities in the principality, introducing explicit safe‑harbour provisions that reshape how Pillar Two Liechtenstein obligations are met in practice. The amendment, published in the consolidated legal database and accompanied by updated guidance from the Liechtenstein National Administration (LLV), permits groups to rely on Transitional Country‑by‑Country Report (CbCR) safe‑harbour rules and other simplified regimes when determining whether a top‑up tax liability arises. For CFOs, tax directors, and trustees of Liechtenstein entities, the global minimum tax is no longer a distant policy concept, it demands immediate action on registration, data collection, and calculation methodology.

This guide provides a practical compliance playbook: step‑by‑step safe‑harbour testing, worked top‑up tax examples, filing calendars, and a trustee‑specific checklist.

Executive Summary & Quick Action Checklist

Before diving into the detail, here are the essential facts and the three actions every in‑scope group should take now:

• Who must act. Any MNE group with consolidated revenue of at least EUR 750 million in two of the four preceding fiscal years that has one or more constituent entities in Liechtenstein, including holding companies, finance entities, and trustee‑managed structures.
• Key date. The April 2026 amendment is effective for fiscal years commencing on or after 1 January 2025 (transitional safe‑harbour applicable from the first GloBE filing year).
• Action 1, Register. Complete the GloBE registration with the Liechtenstein Fiscal Authority (LLV) if you have not already done so.
• Action 2, Map your group. Identify every constituent entity and permanent establishment (PE) with a Liechtenstein nexus and gather the data inputs required for top‑up tax calculation.
• Action 3, Run the safe‑harbour test. Assess whether the Transitional CbCR safe‑harbour or another permitted regime eliminates or reduces the top‑up liability before undertaking full GloBE calculations.

1. What Changed in April 2026, Concise Legal Summary

Liechtenstein originally transposed the OECD GloBE Model Rules into domestic law through its GloBE Regulation (LGBl 2024.129), aligning the principality with the Inclusive Framework’s global minimum tax architecture. The April 2026 amendment builds on that foundation by incorporating detailed safe‑harbour provisions that had previously been addressed only at the OECD level through administrative guidance. In practical terms, this means Liechtenstein now explicitly permits in‑scope groups to use simplified calculations, most notably the Transitional CbCR safe‑harbour, directly within the domestic legal framework, giving taxpayers legal certainty when they elect these regimes.

Legislative Text Highlights

The amendment inserts provisions that mirror the OECD’s Administrative Guidance on safe harbours. The key additions include:

• Transitional CbCR safe harbour. Groups may use qualifying CbCR data to demonstrate that no top‑up tax is due for a jurisdiction, provided strict data‑quality and documentation conditions are met.
• Simplified ETR calculations. The amendment codifies the methodology for a simplified effective tax rate (ETR) test, a routine profits test, and a de minimis test, the three prongs of the Transitional CbCR safe‑harbour framework.
• Documentation and record‑keeping. New provisions require taxpayers electing a safe‑harbour to maintain evidence of eligibility and to make that evidence available to the Fiscal Authority upon request.
• Interaction with domestic top‑up. The amendment clarifies how safe‑harbour elections interact with Liechtenstein’s qualified domestic minimum top‑up tax (QDMTT), ensuring no double charge arises when a safe‑harbour is successfully claimed.

Effective Dates & Transitional Rules

2. Who Is in Scope, Pillar Two Liechtenstein Thresholds & Entity Types

The Pillar Two Liechtenstein rules follow the OECD GloBE Model Rules threshold: an MNE group is in scope if it has consolidated annual revenue of at least EUR 750 million in at least two of the four fiscal years immediately preceding the tested year. This threshold applies at the ultimate parent entity (UPE) level, and all constituent entities worldwide are then brought within the GloBE framework.

In‑Scope Group Criteria

• Consolidated revenue test. EUR 750 million in at least two of the four preceding fiscal years, measured by reference to the UPE’s consolidated financial statements prepared under an acceptable accounting standard.
• Constituent entity definition. Any entity included in the consolidated financial statements (or that would be included but for size or materiality exclusions) is a constituent entity, this includes Liechtenstein subsidiaries, branches, and PEs.
• Excluded entities. Governmental entities, international organisations, not‑for‑profit organisations, pension funds, and investment funds meeting specific criteria are generally excluded from the GloBE calculations, as are single‑entity domestic groups below the threshold.

Local Liechtenstein Entity Examples

Liechtenstein’s corporate landscape includes several entity types that frequently appear in MNE structures and therefore require careful GloBE analysis:

• Holding companies (Aktiengesellschaft / Anstalt). Common in group structures; income typically comprises dividends and capital gains, both subject to specific GloBE inclusion/exclusion rules.
• Finance companies. Intra‑group lending entities generating interest income taxed at the standard Liechtenstein corporate tax rate of 12.5 per cent, already close to the 15 per cent minimum, making the top‑up calculation highly sensitive to adjustments.
• Trusts and trustee‑managed structures. Trusts may be classified as constituent entities depending on their legal form and consolidation treatment; trustees face additional fiduciary obligations under the GloBE regime (see Section 6).

3. Safe‑Harbours Under the April 2026 Amendment, Pillar Two Safe Harbour Decision Tree

The April 2026 amendment gives Liechtenstein taxpayers a clear domestic legal basis for claiming safe‑harbour treatment. The most significant of these is the Transitional CbCR safe harbour, but the amendment also recognises the OECD’s permanent safe‑harbour framework as it evolves. Choosing the right regime requires a structured assessment of data availability, jurisdictional ETR, and revenue thresholds.

Transitional CbCR Safe Harbour, Step‑by‑Step

Under the Transitional CbCR safe harbour, a jurisdiction is deemed to have no top‑up tax liability if any one of the following three tests is satisfied using data from a qualifying CbCR:

1. De minimis test. Total revenue in the jurisdiction is below EUR 10 million and profit (loss) before income tax is below EUR 1 million.
2. Simplified ETR test. The simplified ETR for the jurisdiction, calculated as covered taxes divided by profit before tax, using CbCR data, equals or exceeds the transitional rate (15 per cent for fiscal years beginning in 2025 and 2026).
3. Routine profits test. Profit before tax in the jurisdiction does not exceed the substance‑based income exclusion (SBIE), calculated as a mark‑up on eligible payroll costs and tangible asset carrying values.

To claim the Transitional CbCR safe harbour in Liechtenstein, groups must ensure that the CbCR data used is from a qualified CbCR, one prepared in accordance with acceptable reporting standards and filed with a tax authority. The election is made on a jurisdiction‑by‑jurisdiction, year‑by‑year basis. Once a group fails the safe harbour in a jurisdiction for a fiscal year, it cannot re‑elect for that jurisdiction in any subsequent year.

Other Allowed Safe Harbours & When to Choose Them

• QDMTT safe harbour. Where Liechtenstein’s own qualified domestic minimum top‑up tax meets the OECD design requirements, groups can elect the QDMTT safe harbour, reducing the income inclusion rule (IIR) top‑up to zero for the Liechtenstein jurisdiction.
• Permanent safe harbours (forthcoming). The OECD Inclusive Framework is developing permanent safe‑harbour rules based on simplified GloBE calculations. The April 2026 amendment contains a framework provision allowing adoption of these rules once finalised, ensuring Liechtenstein remains aligned with future OECD developments.

Industry observers expect that the Transitional CbCR safe harbour will be the most commonly used regime for the 2025 and 2026 fiscal years, as it avoids the cost and complexity of full GloBE calculations. However, groups with Liechtenstein entities whose ETR is close to 15 per cent, particularly finance companies taxed at 12.5 per cent, may find they cannot satisfy the simplified ETR test and will need to proceed to full top‑up tax calculation.

4. Top‑Up Tax Calculation, Methodology and Worked Examples

Where a safe harbour cannot be claimed, groups must undertake full GloBE top‑up tax calculations. The methodology follows the OECD Model Rules as transposed into Liechtenstein law. The core formula is straightforward in concept but demanding in execution.

Inputs Required From Accounts

The top‑up tax calculation requires the following data inputs, drawn from the constituent entities’ financial statements and tax records:

• GloBE income or loss. Starting from net income per financial statements, with prescribed adjustments (e.g., add back certain stock‑based compensation, remove excluded dividends and equity gains, adjust for asset revaluations).
• Adjusted covered taxes. Current tax expense per the financial statements, adjusted for items such as deferred tax recapture, uncertain tax positions, and taxes attributable to excluded income.
• Substance‑based income exclusion (SBIE). Calculated as a percentage mark‑up on eligible payroll costs (currently 5 per cent, reducing annually) plus a percentage mark‑up on net book value of eligible tangible assets (currently 5 per cent, reducing annually).
• Revenue and entity details. Entity‑level revenue, headcount, and tangible asset values for each constituent entity in the jurisdiction.

Allocating Top‑Up

The jurisdictional ETR is calculated by dividing adjusted covered taxes by GloBE income for all constituent entities in the jurisdiction on an aggregate basis. If the ETR is below 15 per cent, the top‑up tax percentage equals 15 per cent minus the jurisdictional ETR. The top‑up tax amount is then calculated as:

Top‑up tax = (Top‑up tax percentage) × (Excess profit)

where Excess profit = GloBE income − SBIE.

The resulting top‑up tax is allocated to the constituent entities in the jurisdiction in proportion to their share of group GloBE income. Under the income inclusion rule (IIR), the UPE, or an intermediate parent entity, includes this amount in its own tax return.

Example A, Mid‑Market Holding Group

Consider a Liechtenstein holding company (LieCo) that is part of an MNE group. LieCo has the following figures for the fiscal year:

Step 1, Jurisdictional ETR: 500,000 ÷ 4,000,000 = 12.5 %

Step 2, Top‑up tax percentage: 15 % − 12.5 % = 2.5 %

Step 3, SBIE: (5 % × 600,000) + (5 % × 200,000) = 30,000 + 10,000 = 40,000

Step 4, Excess profit: 4,000,000 − 40,000 = 3,960,000

Step 5, Top‑up tax: 2.5 % × 3,960,000 = EUR 99,000

In this example, the group owes a top‑up tax of EUR 99,000 attributable to the Liechtenstein jurisdiction. If Liechtenstein has implemented a QDMTT, this amount would be collected domestically, reducing the IIR charge at the UPE level to zero for this jurisdiction.

Example B, Trustee‑Managed Family Group Using Transitional CbCR Safe Harbour

A Liechtenstein trust (treated as a constituent entity) is part of a family‑controlled MNE group. The group’s CbCR data for the Liechtenstein jurisdiction shows:

De minimis test: Revenue (EUR 8.5 million) is below EUR 10 million, and profit (EUR 900,000) is below EUR 1 million. Both conditions are met, the jurisdiction passes the de minimis test.

Result: No top‑up tax is due for the Liechtenstein jurisdiction for this fiscal year. The trustee must retain the CbCR data and the de minimis analysis as evidence should the Fiscal Authority request it. Corporate tax compliance in Liechtenstein is simplified substantially through this safe‑harbour election, but the documentation obligation remains critical.

5. GloBE Compliance Steps & Filings, Registration, GIR and Local Returns

Compliance with Pillar Two Liechtenstein obligations involves a sequence of registration, reporting, and filing steps. Groups that fail to register or file on time face potential penalties and, critically, lose the ability to claim safe‑harbour treatment retroactively. The Liechtenstein Fiscal Authority (LLV) has published guidance on its minimum taxation (GloBE) page setting out registration requirements and forms.

GloBE Registration Form, What to Expect

In‑scope groups with Liechtenstein constituent entities must register with the LLV. The registration requires:

• Group identification. Name, jurisdiction, and tax identification number of the UPE and each Liechtenstein constituent entity.
• Consolidated revenue confirmation. Evidence that the EUR 750 million threshold is met.
• Designation of filing entity. Identification of the entity responsible for GloBE information return (GIR) filings, either the UPE directly or a designated filing entity in Liechtenstein.
• Safe‑harbour election notification. If the group intends to claim a safe‑harbour, the registration should indicate this intent (though the formal election is made on the GIR itself).

GIR Filing & Information Exchange

The GloBE Information Return (GIR) is the standardised return through which groups report their GloBE calculations to tax authorities worldwide. GIR filings are exchanged between jurisdictions under the OECD’s multilateral exchange framework. For Liechtenstein entities, this means:

• Filing obligation. If the UPE is not in a jurisdiction that has implemented GIR exchange agreements, or if the UPE jurisdiction does not require GIR filing, each constituent entity jurisdiction, including Liechtenstein, may require a local GIR filing.
• Filing deadline. The GIR must generally be filed within 15 months of the end of the fiscal year (extended to 18 months for the first transitional year).
• Content. The GIR includes jurisdictional ETR calculations, top‑up tax amounts, safe‑harbour elections, and supporting schedules.

Interaction With Local Tax Returns

Where a QDMTT is payable in Liechtenstein, the amount is reported on the domestic corporate tax return. Groups must reconcile their GIR calculations with the local return to ensure consistency. The April 2026 amendment clarifies that safe‑harbour elections made on the GIR are binding for the domestic QDMTT determination, a welcome simplification that avoids dual calculations.

Filing Calendar

Reporting Obligations by Entity Type

6. Trustees & Fiduciary Duties, Practical Checklist

Trustees managing Liechtenstein entities within MNE groups face a distinctive compliance challenge under the Pillar Two Liechtenstein framework. Because trusts can be classified as constituent entities, particularly where they are included in consolidated financial statements, trustees must actively participate in the GloBE data‑collection and reporting process. Failure to do so could constitute a breach of fiduciary duties under FMA supervision.

Trustee Data Collection Template

Trustees should collect and maintain the following for each relevant fiscal year:

• Trust financial statements. Audited or reviewed statements prepared under an acceptable accounting standard, including income, expenses, and tax charges.
• Beneficiary and settlor information. Sufficient to determine the trust’s classification as a constituent entity and its consolidation treatment.
• CbCR data (if Transitional CbCR safe harbour is elected). Revenue, profit before tax, income tax paid and accrued, number of employees, and tangible asset values attributable to the trust’s jurisdiction.
• Covered tax evidence. Tax assessments, payment receipts, and deferred tax schedules.
• Safe‑harbour election records. Written documentation of the safe‑harbour test performed, the data used, and the conclusion reached.

Trustee Reporting Interactions With Administrators

Trustees must coordinate with the group’s tax function, typically the UPE’s tax team or external advisors, to ensure that trust‑level data is included in the GIR. Where the trustee is also a licensed fiduciary under FMA supervision, they bear a personal obligation to ensure data accuracy and timely disclosure. Early indications suggest that the Fiscal Authority will treat trustee non‑cooperation as a compliance deficiency, potentially triggering supervisory review.

7. Risk Management, Audits & Documentation for Auditors and Advisors

Robust documentation is the single most effective defence against audit challenges under the Pillar Two Liechtenstein regime. The Fiscal Authority has the power to request supporting evidence for any safe‑harbour election, ETR calculation, or top‑up tax determination. Auditors and external advisors should therefore ensure that comprehensive workpapers exist from the outset.

Recommended Workpapers

• ETR calculation workbook. A spreadsheet showing the step‑by‑step computation of GloBE income, adjusted covered taxes, SBIE, excess profit, and top‑up tax for each jurisdiction, with cell‑level cross‑references to source data.
• Safe‑harbour eligibility memorandum. A short narrative document explaining which safe‑harbour test was applied, the data inputs used, and why the conditions are satisfied.
• Consolidated financial statement reconciliation. A bridge from the group’s consolidated accounts to the GloBE income figures, identifying each adjustment and its basis in the Model Rules.
• Board minutes or management sign‑off. Evidence that the safe‑harbour election and top‑up tax calculation were reviewed and approved by an appropriate level of management.
• CbCR data verification. Where the Transitional CbCR safe harbour is used, evidence that the CbCR is a qualifying report, filed with a tax authority and prepared under compliant standards.

Record Retention & Defence Notes

Liechtenstein corporate tax compliance obligations typically require records to be retained for at least ten years. Under the GloBE regime, the likely practical effect will be that groups should retain all GloBE workpapers for at least the same period, given that reassessment windows may extend beyond normal statute‑of‑limitations periods. Advisors should also keep contemporaneous notes of any interpretive positions taken, for instance, the classification of a trust as a constituent entity or the treatment of specific income items, as these are the areas most likely to attract scrutiny during an exchange of GIR information between jurisdictions.

8. Practical Next Steps & Timeline for Liechtenstein Entities

The following 30/60/90/180‑day plan provides a structured approach for groups with Pillar Two Liechtenstein obligations:

Conclusion

The April 2026 amendment transforms Pillar Two Liechtenstein compliance from an abstract policy commitment into an operational reality that demands immediate attention. Groups with Liechtenstein constituent entities must register with the LLV, assess safe‑harbour eligibility using the Transitional CbCR framework, and prepare for full top‑up tax calculation where safe harbours cannot be claimed. Trustees face additional obligations that intersect with their fiduciary duties under FMA supervision. The window for preparation is narrow, particularly given that the Transitional CbCR safe harbour is only available for a limited number of fiscal years. Specialist advisory support can help ensure that your group’s compliance approach is both technically sound and cost‑effective.

Sources

1. Liechtenstein National Administration / Fiscal Authority, Minimum Taxation (GloBE)
2. Gesetze.li, Consolidated GloBE Regulation (LGBl 2024.129)
3. OECD, Tax Base Erosion and Profit Shifting (BEPS) / GloBE Model Rules
4. OECD, Administrative Guidance on GloBE (Including Transitional CbCR Safe Harbour)
5. OECD, Inclusive Framework on BEPS
6. Gesetze.li, Liechtenstein Consolidated Law Publication Portal