OECD-Standard

Last updated on 2025-07-21

Overview

The Pillar 2 module closely follows OECD model rules and the GloBE Information Return (GIR). Therefore, the OECD-Standard folder and its workspaces include all data points and entity-level elections required by the OECD and nothing else.

Certain elections can result in some of the values in this folder being omitted from the calculations.
Users can assess the impact of an election by first entering all entity data and then creating one snapshot with and one without applying that election.
Values for constituent entities that have excluded entity status (AMAE20 to AMAE26) or that are not a constituent entity for Pillar 2 purposes (AMAE00) are set to 0 in the CE calculations and the jurisdictional blending.

The field EE-4 in the Entity Election and General Information workspace removes the excluded entity status.

This article contains the following sections:

Navigation
Description of OECD-Standard Workspaces

The OECD-Standard folder and its workspace can be found under Pillar 2 | Entity Data Collection and is displayed as follows, for example:

'CbCR Safe Harbour' workspace in the 'OECD Standard' folder

Description of OECD-Standard Workspaces

The OECD-Standard folder contains the following workspaces:

This workspace stores information relevant to the simplified ETR test and the de minimis exclusion that are part of the transitional safe harbour rules. The entries in this workspace must be in accordance with the corresponding entries in the CE’s country-by-country report. Hence, Lucanet highly recommends that users who also use the CbCR module import CbCR safe harbour data from there.

This workspace stores information required for the third part of the transitional safe harbour check, the substance-based income exclusion, and to calculate the carve-out amount in the CE calculations and in the jurisdictional blending.

Notes:

The tangible asset-carve out amount is calculated as the average of the sums for the reporting year and for the preceding year. Therefore, a prior period that includes the ultimo exchange rates for all jurisdictions is required for this calculation.

If a user elects to apply the substance-based income exclusion, the calculations will ignore any values in this workspace. Users can base their decision for or against that election by comparing snapshots with and without it.

This workspace contains the entity-level elections and general information regarding the applicable qualified domestic top-up tax (QDMTT) and accounting standard:

Option

Description

Annual Elections

Annual elections only apply to the current reporting period and can be made differently for every year.

EE-2

Debt Release election (Article 3.2.1)

Activate this checkbox to include values stored at INC-2.11 in the CE calculation (C2) and in the jurisdictional blending (C4). Otherwise, those values will be disregarded.

Five-year Elections

Five-year elections apply for the period of five years and cannot be changed within that period.

EE-4

Not treating an Entity as an Excluded Entity election (Article 1.5.3)

A constituent entity that meets at least one of the criteria represented by AMAE20 to AMAE26 has excluded entity status. All values relating to an excluded entity are set to 0 in the CE calculations and the jurisdictional blending. However, EE-4 supersedes AMAE20 to AMAE26 and removes excluded entity status. Consequently, by activating the checkbox for EE-4, you can include in the CE calculations and the jurisdictional blending values for otherwise excluded entities.

EE-8

Taxable distribution method election (Article 7.6)

If elected, values of the respective CE that are added at INC-2.24 and CT-2.16 are taken into account in the CE calculation as well as the jurisdictional blending. If not elected, any values added at INC-2.24 and CT-2.16 are not taken into account for the respective CE.

Note: EE-1, EE-3, EE-5, EE-6, and EE-9 are for informational purposes only.

The data in this workspace is used to calculate the GloBE income of the CEs (C2 – CE-Calculations) and in the several jurisdictions (C4 – Jurisdictional Blending).

The data in this dialog is used to calculate the GloBE income of the CEs (C2 – CE-Calculations) and in the several jurisdictions (C4 – Jurisdictional Blending).

The data in this workspace is used to calculate the GloBE income of the CEs (C2 – CE-Calculations) and in the several jurisdictions (C4 – Jurisdictional Blending).

Notably, if the entity tax rate (DT-4.1) is below the minimum tax rate of 15%, the deferred tax expense amount is recast to the minimum tax rate. If performed, the recast is crucial to the calculation of the total deferred tax adjustment amount. The recast is done by dividing the total deferred tax adjustment amount before recast (DT-3) by the entity tax rate and multiplying the result by the minimum tax rate.

Because not all deferred taxes were necessarily calculated with the same tax rate, users can define amounts A (DT-4.3) and B (DT-4.5) that will be calculated by using tax rates A (DT-4.4) and B (DT-4.6), respectively. Tax expenses must be entered as positive values in DT-4.3 or DT-4.5, tax income must be entered as negative values. The residual deferred tax expenses (DT-4.1) are calculated automatically.

The information in this workspace is used to calculate or maintain taxes on items that are excluded from the GloBE income. The structure of the workspace is as follows:

Tax Rates

The top section of the workspace contains the current tax rate and the deferred tax rate for excluded items. You have the option to manually enter the tax rates, import them, and to make manual adjustments to imported tax rates.

Taxes on Excluded Items

The entries in this section follow the same basic structure:

The first line (e.g. EX-2.1) states the name of the GloBE adjustment and the article in the OECD model rules the exclusion is based on (e.g. Excluded Dividends - Article 3.2.1 (b)). This line contains the total value of the excluded item or items in the respective category. You have the option to upload supporting material or enter a comment of up to 1000 characters.
The second line (e.g. EX-2.2) shows the relevant current tax expenses.
The third line (e.g. EX-2.3) shows the relevant deferred tax expenses.
The second and third lines each contain the following entries:
- Amount Excluded: the relevant amount excluded from the GloBE income. This value must be imported internally (from other Lucanet modules) or from external sources (csv, data transfer).
- Suggestion: the suggested tax amount based on the excluded amount and the relevant tax rate.
- Adjustment Import: imported adjustments to the suggested tax amount. This value can be imported internally (from other Lucanet modules) or from external sources (csv, data transfer).
- Adjustment Manual: manual adjustments to the suggested tax amount.
- Total: the sum of the suggested tax amount and all adjustments.

Notes:

Lines EX-X.1 are for informational purposes only.

Only values in lines EX-X.2 and EX-X.3 are part of the calculations. For example, to calculate current and deferred taxes on excluded dividends pursuant to Article 3.2.1 (b) of the OECD Model Rules, you need to import or manually input the necessary data in lines EX-2.2 and EX-2.3, respectively.

Some entries only have current (e.g. EX-16.2) or deferred taxes (e.g. EX 26.3).

You can leave the Amount Excluded field empty in some or all lines and instead enter the whole tax amount as an import or manual adjustment.

Certain non-taxable transaction have no effect on current or deferred tax expenses. Thus, the amount in the first line of an entry might be different from the sum of the amounts in the other lines.