Due to recent amendments to the Austrian Corporate Income Tax Act (CITA), the threshold for determining low taxation under both the Austrian controlled foreign corporation (CFC) rules (Section 10a CITA) and the rule on the non-deductibility of interest and license fees (Section 12 para 1 no 10 CITA) will be aligned at 15 % from 2026 onwards (previously 12.5 % and 10 % respectively). At first glance, one might expect that in case a foreign entity is subject to the Pillar II rules which provide for a 15 % effective minimum taxation, any interest and license payments made to this entity would automatically no longer be regarded as low-taxed. In practice, however, this is not the case. Alexandra Dolezel and Christina Höchtl demonstrate that Section 12 para 1 no 10 CITA remains relevant despite Pillar II. Two case studies illustrate the interaction and potential frictions between these two regimes.