Substance-Based Income Exclusion (SBIE) Average Translation Automation

Tax Reporting now supports an enhanced translation option for calculating Substance-Based Income Exclusion (SBIE) average rates data.

With this enhancement Tax Reporting runs the Pillar Two average logic automation calculation using translated source values from the prior- and current-year periods, rather than applying the average rate directly to the average calculation result[s]. This helps ensure that SBIE calculations reflect the appropriate translated rates, source-account overrides applicable, and correct calculation.

The new SBIE Average Translation Automation Pillar Two tax setting is enabled by default. It can be disabled by toggling the new tax setting.

Business Benefit: This new capability allows translation of SBIE average-rate calculations correctly for a given source period. Using this methodology creates a dynamically generated weighted average rate.

Key resources

• Administering Tax Reporting
  • Working with SBIE Average Rule
  • FX Order of Precedence