Safe Harbours: Which Companies Benefit from the Simplified Regime?
Not every group within scope has to perform the full calculation. If you pass one of three tests, the top-up tax in Türkiye is deemed to be zero, freeing you from the burden of detailed calculation.
Why Does It Matter?
A full GloBE calculation is a project requiring hundreds of data points. Passing one of the safe harbour tests dramatically reduces your compliance cost. Yet many groups jump straight into the full calculation without ever attempting the tests.
The Transitional CbCR Safe Harbour: Three Core Tests
The tests are performed using the Country-by-Country Reporting (CbCR) data you are already preparing. Passing any one of the three is sufficient.
1. De minimis test. The test is passed if the group's total revenue in Türkiye is below €10 million and its pre-tax profit is below €1 million. This is the most practical route for groups with a small presence in Türkiye.
2. Simplified effective tax rate test. The test is passed if the jurisdictional effective tax rate exceeds the threshold set for the transition period. The threshold rises progressively year by year: 15% for the 2024 fiscal year, 16% for 2025, and 17% for 2026.
3. Routine profits test. The test is passed if the jurisdiction's pre-tax profit does not exceed the amount of the substance-based income exclusion. This suits capital- and labour-intensive operations with substantial payroll and tangible assets but limited profitability.
What Do You Gain by Passing?
The top-up tax for that jurisdiction is deemed to be zero, and the obligation to prepare a detailed information return is eased. But be careful: this does not mean you file nothing. You must still declare that you relied on the safe harbour and document the basis for it.
Is the Safe Harbour an Exemption or an Election?
A safe harbour does not mean the group falls outside Pillar 2's scope. It is an elective simplification that allows the top-up tax to be deemed zero for a specific jurisdiction and fiscal year. Accordingly, the election must be made on time, indicated on the relevant form, and the basis for the test must be retained.
The qualified-data requirement is the most important legal foundation of the safe harbour. If the source of the financial statements is later changed, if there is a mismatch between the CbCR data and local accounts, or if purchase-accounting adjustments are misapplied, the tax authority may argue the test is invalid. Such a challenge could force the group to perform a full retrospective GloBE calculation and expose it to top-up tax and penalty risk. The OECD's January 2026 package introduced new rules on the duration of safe harbours and the possibility of re-entry; accordingly, the assumption that "once you're out, you're out for good" should not be treated as settled without checking the current period and rule set.
Points to Note
"We already have our CbCR data, so we automatically pass the test."
The validity of the test depends on whether the CbCR data used, and the underlying financial statements, possess the quality required under the rules. Data compiled within the group from different reporting packages, or that is inconsistent or subsequently corrected, can weaken the safe harbour defense. Furthermore, not relying on the safe harbour in one period can affect the ability to rely on it in later periods — meaning the decision made in the first year has long-term consequences.
Action Items
- Run all three tests separately for Türkiye and document which one is passed
- Assess whether your CbCR data would be considered qualified
- Justify and retain your safe harbour decision in a written memo showing the sources used, data owners, and controls performed
- Track the fact that the threshold rate rises every year: a test passed this year may not be passed next year
Conclusion
The basis for a safe harbour election should not rest on the test result alone. When the data set used, the source of the financial statements, the applicable rules, and management approval are all documented together, the decision's defensibility during a review is strengthened.