---
title: "C4 – Jurisdictional Blending"
description: "The jurisdictional blending aggregates CE data based on the reporting dimension type selected for the top-up tax blending."
source_url: https://support.lucanet.com/en/documentation/income-taxes/income-taxes/pillar-two/calculation/c4
language: en
last_updated: 2026-05-01
---
# C4 – Jurisdictional Blending

## Overview

In the **Tax Compliance & Reporting** solution, the workspace **C4 – Jurisdictional Blending** can be found. 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.

> **Warning:** If a CE qualifies for the **NMCE Safe Harbour**, i.e. the [NMCE Safe Harbour Check](https://support.lucanet.com/en/documentation/income-taxes/income-taxes/pillar-two/calculation/c1.md) was successful and **EE-1** has been activated for the CE (see **Entity Election and General Information** workspace in the [OECD-Standard](https://support.lucanet.com/en/documentation/income-taxes/income-taxes/pillar-two/entity-data-collection/oecd-standard.md) folder), the CE is **excluded** from the workspace.

## Navigation

The **C4 – Jurisdictional Blending** workspace can be found at **Pillar 2 | Calculation | C4 – Jurisdictional Blending** and is displayed as follows:

![The 'C4 – Jurisdictional Blending' workspace is displayed.](https://support.lucanet.com/assets/docs-images/income-taxes/income-taxes/pillar-two/calculation/c4/_images/en/c4-workspace.png)
'C4 – Jurisdictional Blending' workspace

To access this workspace and display the desired values:

1. Select a snapshot in the **Home** workspace.

2. Navigate to **C4 – Jurisdictional Blending**.

3. Select the jurisdiction or subgroup you want to review from the **Jurisdiction** drop-down list.

## Notes on the Section 'Determination of Covered Deferred Taxes'

- **DT-1.1, DT-1.2, DT-1.3**: These fields aggregate the respective values from the [C2 - CE Calculations](https://support.lucanet.com/en/documentation/income-taxes/income-taxes/pillar-two/calculation/c2.md) workspace for each jurisdiction.

- **DT-1**: The aggregated total deferred tax expense for the jurisdiction, calculated as the aggregate of the DT-1 values from all constituent entities in the jurisdiction.

- **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-2.2}+{CT-3}+{CT-4}+{DT-5}+{TCF-1.1}-{TCF-1.2}