C2 – CE Calculations

Last updated on 2025-07-07

Overview

The C2 - CE Calculations workspace contains a list of the data points used in the Pillar 2 calculations, including entity elections as well as jurisdictional elections, to the extent that they impact individual CEs.

Values in this workspace might differ from the respective values in the entity data collection for any of the following reasons:

  • As in all parts of the Calculation section, values are displayed in the snapshot currency.
  • The entity data collection allows importing multiple values into the same field and making further adjustments in that line. The calculations use and display the Total value for each line item.
  • Activating the AMAE20 to AMAE26 checkboxes confers Excluded Entity status, effectively setting most values to zero. However, activating the checkbox for EE-4 strips an entity of that status.
  • Certain other elections also are included in the Pillar 2 calculations. Those elections are highlighted in the description of the linked item.
Notes on the Individual Sections
Determination of Net GloBE Income (Loss)
  • INC-1 and all following fields of this section: Excluded entity status sets this value to zero.
  • INC-2.11: Not selecting EE-2 sets this value to zero.
  • INC-2.12: Not selecting JE-31 sets this value to zero.
  • INC-2.13: This value reflects the sum of the relevant cross-border adjustments.
  • INC-2.15: Not selecting JE-32 sets this value to zero.
  • INC-2.16: Not selecting JE-10 sets this value to zero.
  • INC-2.17: This value reflects the sum of the relevant cross-border adjustments.
  • INC-2.18: Not selecting JE-33 sets this value to zero.
  • INC-2.24: Not selecting EE-8 sets this value to zero.
  • INC-2 is the sum of adjustments: {INC-2.1}-{INC-2.2}-{INC-2.3}+{INC-2.4}-{INC-2.5}-{INC-2.6}+{INC-2.7}-{INC-2.8}-{INC-2.9}+{INC-2.10}-{INC-2.11}+{INC-2.12}-{INC-2.13}+{INC-2.14}+{INC-2.15}+{INC-2.16}+{INC-2.17}-{INC-2.18}-{INC-2.19}+{INC-2.20}-{INC-2.21}-{INC-2.22}-{INC-2.23}+{INC-2.24}-{INC-2.25}+{INC-2.26}
  • INC-3 is the Net GloBE Income (Loss): {INC-1}+{INC-2}
Determination of Covered Current Taxes
  • All fields except CT-2 and CT-3: Excluded entity status sets this value to zero. 
  • CT-2.12: Not selecting JE-10 sets this value to zero.
  • CT-2.16: Not selecting EE-8 sets this value to zero.
  • CT-2 is the sum of adjustments: {CT-2.1}+{CT-2.2}+{CT-2.3}+{CT-2.4}+{CT-2.5}-{CT-2.6}-{CT-2.7}-{CT-2.8}-{CT-2.9}-{CT-2.10}-{CT-2.11}-{CT-2.12}-{CT-2.13}-{CT-2.14}+{CT-2.15}+{CT-2.16} 
  • CT-3 is current taxes after adjustments: {CT-1}+{CT-2}
Determination of Covered Deferred Taxes
  • fields DT-1 to DT-16 and DT-4: 
    • Excluded entity status sets this value to zero. 
    • Selecting JE-50 sets this value to zero.
  • DT-2 is the sum of adjustments: -{DT-2.1}-{DT-2.2}-{DT-2.3}-{DT-2.4}-{DT-2.5}-{DT-2.6}+{DT-2.7}+{DT-2.8}+{DT-2.9}-{DT-2.10}-{DT-2.11}-{DT-2.12}+{DT-2.13}-{DT-2.14}-{DT-2.15}+{DT-2.16}
  • DT-3 is the total deferred tax adjustment amount: {DT-1}+{DT-2}
  • DT-5 is the total deferred tax adjustment amount (recasted): {DT-3}-{DT-4}
  • ACT-1 are the Adjusted Covered Taxes: {CT-3}+{CT-4}+{DT-5}
Determination of Substance-based Income Exclusion Amount
  • fields CO-1, CO-1.1, CO-2, CO-2.2: 
    • Excluded entity status sets this value to zero. 
    • Selecting JE-12 sets this value to zero.
  • CO-1.2 shows the mark-up percentage relevant for eligible payroll costs according to the date in GEN-1.2.
  • CO-1 is the Payroll Carve-Out Amount: (({CO-1.1}+{CO-1A})*{CO-1.2})/100
  • CO-2.1:
    • States for each entity the Total value of the entity data collection in CO-2.1.
    • Is set to zero if the entity is an excluded entity, that did not elect not to be treated as an Excluded Entity (EE-4).
    • Is set to zero if the Entity elected not to apply the Substance-based Income Exclusion (JE-12)
  • CO-2.4 shows the mark-up percentage relevant for eligible tangible assets according to the date in GEN-1.2.
  • CO-2 is the Tangible Assets Carve-Out Amount: (({CO-2.3}+{CO-2A}) * {CO-2.4})/100
  • CO-3 is the Substance-based Income Exclusion: {CO-1}+{CO-2}
Information for the Top-Up Tax Calculation and Information
  • fields TT-2.3, I-3: 
    • Excluded entity status sets this value to zero. 
    • I-3 is independent of the aggregate asset gain election (JE-10).
De Minimis Information

Option

Description

FYALL

Shows the number of fiscal years during the two preceding reporting periods during which the CE was not part of the calculation.

DM-4.1

Average of the revenue of the reporting fiscal year and the two preceding years if those are available. If fiscal years from earlier periods are not available, the value is calculated by dividing the cumulative revenue by the number of fiscal years available.

DM-4.2

Average of the GloBE revenue of the reporting fiscal year and the two preceding years if those are available. If fiscal years from earlier periods are not available, the value is calculated by dividing the cumulative GloBE revenue by the number of fiscal years available.

DM-4.3

Average of the financial accounting net income (or loss) of the reporting fiscal year and the two preceding years if those are available. If fiscal years from earlier periods are not available, the value is calculated by dividing the cumulative GloBE revenue by the number of fiscal years available.

DM-4.4

Average of the GloBE income (or loss) of the reporting fiscal year and the two preceding years if those are available. If fiscal years from earlier periods are not available, the value is calculated by dividing the cumulative GloBE income or loss by the number of fiscal years available. 

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