1. Administering Tax Reporting
  2. Working with Pillar Two
  3. Configuring Pillar Two
  4. Configuring GloBE Income and Covered Tax Automation

Configuring GloBE Income and Covered Tax Automation

You can set Global or Jurisdiction or Entity rules for Adjustment accounts.

Note that:

  • The Percent is limited to +/- 100%
  • The Logic is restricted to Pull
  • Source account is required.
  • Source Movement: TRCS_SourceBookClosing (that is, parent of Trial balance closing, Book closing and Closing Book vs Tax Basis). This will be the default source movement when left blank.
  • Source Data Source: TRCS_SourcePreTax (that is, parent of Total Data source including Data Input, Managed Input and Supplemental data). This will be the default source data source movement when left blank.
  • Additionally data can be moved from between Multi-GAAP and/or Scenario

Pillar Two Automation

The Pillar Two Automation works in the same way as Tax Automation in the tax provisioning process. The only difference is that in Pillar Two Automation, you have the column to select Source as a Data Source where it is either Pre-tax or Tax. The application ultimately processes the combined set of Global, Jurisdiction, and Entity Level Rules which are stored at the entity level. To see the set of rules applicable to an Entity you have to look at the Entity level rules which can be a combination of Global, Jurisdiction and Entity level rules enabled and/or disabled.

How it works: The Global rules when set are copied to the Jurisdiction and Entity level upon save. The Global rules that are disabled or disabled and overridden at the Jurisdiction level are copied to the Entity level. The Jurisdiction rules can be disabled or disabled and overridden at the Entity level.

You can save the new Entity Rules at the Entity level. You can see the type of rule (that is, Global, Jurisdiction, Entity) by looking at the rule name. You can also add additional rules to the metadata as needed.

Note:

To configure Pillar II without using Pillar II automation rules you can enter data directly in the GloBE Income and Covered Tax Forms. The POV must be set to Entity, Domicile, Entity Currency, and Entity Input to enter data.