Enhancements to Pillar Two

Tax Reporting is now enhanced with multiple new Pillar Two capabilities. They are:

• Pillar Two Entity Top-up Tax Allocation - Low taxed Jurisdiction: The jurisdictional top-up tax is allocated to constituent entities in the low tax jurisdiction that have positive GloBE Income. Allocation of top-up tax amount is based on the Entity's portion of the group's GloBE Income in the low-taxed jurisdiction.

• Pillar Two Automation Logic – Average: For Substance Based Income (SBIE) accounts, an additional pillar two logic "Average" is now available in Pillar Two GloBE Income Automation. It calculates the average of the current year and the prior year ending period (P12) values. 
• Recast using Deferred Tax Closing Rate: You now have the ability to use closing deferred tax rate (that is, TRCS_TaxRateNoncurrentClosing) for the covered tax recast calculations.

Business Benefit: This new feature complies with OECD global minimum tax under Pillar Two.

Key Resources

• Administering Tax Reporting
  • Managing Entity Allocation
  • Configuring GloBE Income and Covered Tax Automation
  • Configuring Other Accounts and Other Accounts Automation
  • Calculating Recast using Deferred Tax Closing Rate