income-taxes Documentation / Tax Compliance & Reporting / Income Taxes / Pillar 2 / Calculation / C0 – Safe Harbour Check The Safe Harbour Check
These tests are followed by information on the applicability of the transitional safe harbour.
For the safe harbour check, entity data is aggregated on a jurisdictional level based on the reporting dimension type CbCR-Safe Harbour Blending
The C0 – Safe Harbour Check Pillar 2 | Calculation | C0 – Safe Harbour Check
'C1 - Safe Harbour Check' workspace Specify the following per section:
Qualified CbCR Profit (Loss) before Income Tax
Displays the aggregate of the CbCR-2
Income Tax Expense (including uncertain tax positions)
Displays the aggregate of the CbCR-3.1
Income Tax Expense related to uncertain tax positions
Displays the aggregate of the CbCR-3.2
Income Tax Expense (after eliminating uncertain tax positions)
Displays the aggregate income tax expense after eliminating uncertain tax positions, based on the following calculation: {1.3} - {1.4}.
Displays the aggregate simplified ETR by dividing the income tax by the qualified CbCR profit or loss before income tax: {1.5} / {1.1} * 100.
Displays the transition rate of 15%.
Simplified ETR Test successful?
Indicates whether or not the simplified ETR test is successful.
Displays the aggregate of the CbCR-1
Average GloBE Revenue threshold
Displays the GloBE revenue threshold (€ 10,000,000).
Qualified CbCR Profit (Loss) before Income Tax
Displays the aggregate of the CbCR-2
Average GloBE Income threshold
Displays the fixed GloBE income threshold (€ 1,000,000).
De Minimis Test successful?
Indicates if the de minimis test is successful.
Qualified CbCR Profit (Loss) before Income Tax
Displays the aggregate of the CbCR-2
Relevant Eligible Payroll Costs of Eligible Employees performing activities in the jurisdiction
Displays the aggregate of the CO-1.1
Allocations of Eligible Payroll Costs in case of Permanent Establishments or Flow-Through Entities
Displays the payroll cost allocations applicable to permanent establishments or flow-through entities in the jurisdiction.
Application of relevant mark-up percentage for the Reporting Fiscal Year
Displays the relevant mark-up percentage for the reporting year, e.g. 9.8% for 2024.
Displays the aggregate amount of eligible payroll costs for the jurisdiction or subgroup multiplied by the relevant mark-up percentage.
Value of relevant Eligible Tangible Assets located in the jurisdiction at the beginning of the reporting year
Displays the aggregate of the CO-2.1
Value of relevant Eligible Tangible Assets located in the jurisdiction at the end of the reporting year
Displays the aggregate of the CO-2.2
Allocations of Eligible Tangible Assets in case of Permanent Establishments or Flow-Through Entities
Displays the tangible asset allocations applicable to permanent establishments or flow-through entities in the jurisdiction.
Carrying value of relevant Eligible Tangible Assets located in the jurisdiction
Displays the arithmetic mean of the values in lines 3.5 and 3.5b above.
Application of relevant mark-up percentage for the Reporting Fiscal Year
Displays the relevant mark-up percentage for the reporting year, e.g. 7.8% for 2024.
Tangible Assets Carve-Out Amount
Displays the carrying value of relevant eligible tangible assets multiplied by the relevant mark-up percentage.
Total amount of the Substance-Based Income Exclusion
Displays the sum of the payroll carve-out amount and the tangible assets carve-out amount.
Routine Profits Test successful?
Indicates whether or not the routine profits test is successful.
Option Description 4 Is the Transitional CbCR safe harbour generally available for the Reporting Fiscal Year? 5 Was the election to use the Transitional CbCR safe harbour exercised in the previous Reporting Fiscal Year? 6 Which Safe Harbour Election is exercised for the jurisdiction or joint venture group? 7 Is the elected Safe Harbour successful? 8 Result: Will the Transitional CbCR safe harbour be applied for the Reporting Fiscal Year?
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