C4 – Jurisdictional Blending
Last updated on 2025-07-07
Overview
The jurisdictional blending aggregates CE data based on the reporting dimension type selected for the top-up tax blending.
Unless otherwise indicated, the fields in this dialog aggregate the respective values for a jurisdiction or subgroup. For example, INC-1 aggregates the INC-1 values of the individual CEs in a given jurisdiction.
Notes on the Section 'Determination of Covered Deferred Taxes'
- TCF-1.1: The excess negative tax expense amount is calculated only in case of negative adjusted covered taxes that exceed the expected adjusted covered taxes.
In the case of an overall GloBE loss, the excess negative tax expense amount is the positive difference between the expected negative tax expense and the negative tax expense.
In the case of an overall GloBE income, the excess negative tax expense amount is the positive value of the negative tax expense. - TCF-1.2: The excess negative tax expense carry-forward lowers the adjusted covered taxes if there is a remaining balance of the excess negative tax expense carry-forward from prior years (I-1.1) and the GloBE income and the adjusted covered taxes are positive. The negative expense carry-forward is decreased by the lower of the remaining balance of excess negative tax expense carry-forward and the adjusted covered taxes of the current period.
- ACT-1: Adjusted Covered Taxes = {CT-3}+{CT-4}+{DT-5}+{TCF-1.1}-{TCF-1.2}+{GL-1.1}-{GL-1.2}