Tax Technology / IT Implementation We will support you in selecting, customising and implementing a tool that can, as far as possible, automatically calculate the qualified income, covered taxes, substance-based income exclusion, ETR and top-up tax using data from the ERP system. This enables...
Under the model rules, covered tax amounts included within the financial accounts of a "main entity" but relating to the profits of its permanent establishment, are generally allocated to the permanent establishment jurisdiction for effective tax rate calculation purposes. Some jurisdictions allow for ...
Chapter 4 sets out the mechanics for determining the amount of “covered taxes” for each group entity. Updates to the chapter include guidance on consolidated deferred tax amounts, the carry forward of “excess negative tax expense,” loss-making parent entities of controlled foreign companies (C...
Image 2: The Pillar Two calculation flow Key business benefits Be ready for Pillar Two requirements and implement the Oracle solution quickly by leveraging the best practice tax reporting framework Speed up the financial close and keep tax reporting connected to the broader financial close process...
Calculation of the Adjusted Covered Taxes The Adjusted Covered Taxes of a constituent entity for the Fiscal Year is equal to the current tax expense accrued in its financial accounts with respect to covered taxes for the Fiscal Year; the increase or decrease in covered taxes recorded in equity ...
Calculation of the ETR Under pillar two, additional tax obligations may arise if the ETR of a group entity in a specific jurisdiction is lower than 15%. The ETR is calculated by dividing the adjusted covered taxes (essentially, the taxes on the income or...
GloBE Income • Determination of the assessment basis Covered Tax Expense • Determination of the tax payments made ETR & Top-up Determination of the ETR, and if necessary, the top-up tax Image 2: The Pillar Two calculation flow Key features Full top-up tax model including GloBE ...
OECD consultation on tax base determinations of Amount A Computation of the profit or loss of in-scope MNE groups that will be used for the calculation of Amount A 4 March 2022 OECD consultation on revenue sourcing and nexus of Amount A ...
(English only) of Pillar Two Data Input Catalogue, which lists the information required in response to Pillar Two.The report summarises considerations for data collection, such as the complexity of calculation of effective tax rates and top-up tax amounts resulting from the introduction of Pillar...
(IIR), which provides for the jurisdiction of the group's ultimate parent entity, or sometimes an intermediate parent entity, to collect an allocation of the top-up tax according to its ownership interest; and (2) the UTPR (formerly known as the 'Undertaxed Payments Rule'), which is ...