The Luxembourg Administration of Direct Contributions (ACD) has recently updated its Frequently Asked Questions (FAQ) concerning the OECD‑backed ‘Pillar 2’ initiative, which introduces a global minimum corporate tax of 15 %. The revision, announced on 18 June 2026, incorporates the amendments to the legislation of 22 December 2023 that modified the rules governing the effective tax rate for multinational groups and large national groups. The updated FAQ explains the practical implications of the new minimum tax, outlining which entities are affected, how the minimum tax is calculated, and the reporting obligations that follow. It also clarifies the interaction between the Luxembourg domestic rules and the OECD model, emphasizing the need for multinational groups to adjust their tax planning strategies. Furthermore, the FAQ provides guidance on the documentation required to demonstrate compliance, the mechanisms for dispute resolution, and the penalties applicable for non‑compliance. The ACD’s update reflects a coordinated effort with other EU tax administrations to ensure a consistent implementation of Pillar 2 across the Union. By releasing this FAQ, the ACD aims to assist taxpayers, tax professionals, and tax authorities in understanding the new obligations, thereby facilitating a smooth transition to the minimum tax regime and preventing tax avoidance through low‑taxed income.