First Steps in Pillar 2 and CbCR

Getting Started

Global Functions

Lucanet Lume

Data Hub

Administration

Extended Planning & Analysis (xP&A)

Consolidation & Financial Planning

ESG Reporting

Disclosure Management

XBRL Tagger

Lease Accounting

Banking & Cash Management

Data Collection

Tax Compliance & Reporting

Tax Administration

Income Taxes

User Interface of Income Taxes

Modules and Additional Functions in Income Taxes

Income Tax Forms

Master Data

Company

(Sub-) Group

Reporting

Pillar 2

Country-by-Country Reporting

First Steps in Pillar 2 and CbCR

Tax Balance

Tax Services

Glossary

After updating to the new version of TCR, the master data must first be fully maintained before substantive work can begin in the Pillar 2 sub-module. This guide describes the required steps in the recommended order.

Important: Setting up DIP transmission (certificate and activation with the BZSt) should be initiated first, as lead times are involved. Master data maintenance can be carried out in parallel.

Creating the DIP Certificate and Setting Up Transmission

Activation for the DIP procedure (data exchange with the BZSt) requires an application to the BZSt, which involves a lead time.

Creating the Certificate

Create a new certificate under Tax Administration | Certificates.

Fill in Certificate Data:

Type

: DIP (preselected)

Description

: Mandatory field – enter a meaningful description

Comment

: Optional

User Allocation: The certificate must be assigned to one or more users. Several users can share a single certificate.

Fill in DIP details:

Environment

: Test or Production (mandatory)

BZSt number

: Mandatory field

Client ID

: Mandatory field

Account ID

: Mandatory field

Generating Certificate

Additional details required for generation:

Common Name (Name)

E-mail address

Organisation (this value is verified – it must be correct!)

Locality (city)

State (federal state)

Country (country code, e.g. "DE")

Click "Generate certificate" – the system automatically generates:

Certificate File

Private Key File

Public Key File

Note: The file upload fields (Certificate file, Private key file, Public key file) do not need to be filled in before clicking "Generate certificate" . The files are generated automatically.

After the certificate has been created, an

application for activation of the DIP procedure

must be submitted to the BZSt.

This process should be initiated

as early as possible

to avoid delays during later transmission.

Creating and Maintaining Units

In Tax Administration | Units | Reference date view, all Constituent Entities of the group must be created as Units and assigned the relevant properties as follows:

General data:

Unit Code

– Unique identifier of the unit

Name

– Name of the unit

Validity (Start of / End of)

– Validity period during which the unit exists in this configuration. Specifies the period during which the unit exists in its current configuration.

International Tax:

Tax Identification Number (TIN)

– Tax identification number of the unit

Jurisdiction that issued TIN

– Country that issued the TIN (two-letter ISO country code)

TIN Type

– Type of identification number:

GIR3001

– Tax Identification Number (regular TIN)

GIR3002

– Functionally equivalent number

GIR3003

– Agreed GIR designated number

GIR3004

– Not required to be reported

NOTIN rule: If the Unit has no TIN, NOTIN must be entered in the TIN field. However, this is only permitted if none of the four TIN types is applicable. Before entering NOTIN, always check whether one of the first three types (GIR3001–3003) applies.

Jurisdiction of Residence

– Jurisdiction in which the Unit is resident

Applicable Rules

– Which rules apply (QDMTT, QIIR for Low-Tax, QIIR for all, QUTPR, or not

applicable

)

CbCR-specific data:

Relevance of the Unit for CbCR (yes/no)

Stateless flag (yes/no)

Pillar Two-specific data:

Pillar Two relevance

– Is the Unit relevant? (Non-relevant Units, e.g. ancillary entities, are thereby deactivated.)

Stateless Entity

– Is the entity a stateless business unit? This determines, in particular, blending and other key properties.

GloBE Status

– e.g. UPE, Flow-through Entity, Main Entity, Permanent Establishment, Joint Venture, etc. All possible values are listed in the import template.

Excluded Entity Type

(if applicable): e.g. Governmental, International, or Nonprofit Organization

Parent Entity Type

: e.g. Partially Owned Parent Entity (POPE), Intermediate Parent Entity (IPE), etc.

Exceptions for Income Inclusion

– e.g. exception because another entity (UPE/IPE) applies the Income Inclusion, or exception under Art. 10.3.5 (Dual Located UPE). All available values are stored in the import template.

Data import

If the data is already maintained in the

Income Taxes

module, it can be exported via an

individual report

and used as an

import template for Tax Administration

Alternative: download the import template directly from the system (Import from Excel).

Import from module

: Enables direct import from other TCR modules.

Notes on Importing and Updating

Avoid faulty uploads

: Incorrectly uploaded data must be deleted manually – there is currently no bulk-delete function.

Pay attention to the Validity period

: When updating properties, always use the same Validity period so that the system can correctly assign the data.

Recommended approach

: Load the status as of

December 31, 2023

as the starting basis, and then enter the changes for 2024 on top of it.

For changes during the year (e.g. a change of status): create separate Validity periods (e.g. 01.01.2024 – 30.06.2024 and 01.07.2024 – 31.12.2024).

Maintaining Organizational Structures

In Tax Administration | Organisational structures, there are three structure types that must be maintained:

3a) Company Structure

Displays the

ownership interests

across the entire group.

Each entity is placed under its respective parent entity together with its ownership interest.

Notes on Maintaining the Structure

Validity

period also applies here (e.g. 2020–2099 for stable structures).

Main Entity / Permanent Establishment

: In the structure, a Permanent Establishment must always be assigned 100% to its associated Main Entity.

3b) Tax Group Structure

Becomes relevant as soon as the

election for joint reporting

is made for a given entity.

The Tax Group must be maintained whenever this election is made.

3c) Subgroups

Are automatically used separately for the calculation steps

C0, C1, and C4

Several group types can be created here:

Minority Owned Subgroups

Minority Owned Constituent Entities

Investment Entities

Joint Ventures

Transitional UTPR Safe Harbour Groups

Creating Subgroups

Assign a name

Specify the validity start date

Create a link and assign the entities to the respective group

Data import

Organizational structures can also be exported and imported.

The import template has been revised and now includes examples.

Note: Currencies (Tax Administration | Currencies) are not used for Pillar 2 and do not need to be maintained.

Checking Roles and Role Allocation

Check whether the roles and role allocations in Tax Administration | Roles and Tax Administration | Role allocation are still up to date and whether all users have the correct permissions for Pillar 2.

Working in Pillar 2

Once the master data has been fully maintained, work in Pillar 2 can begin under Income Taxes | Pillar 2. Among other things, a new workspace Transmission is now available there.

Certificates and DIP Transfer to the Tax Authorities

Requesting the certificate

: For DIP transfer, customers must request a certificate via the BZSt portal. This must be done externally and cannot be performed from within the modules.

Storing in the system

: The certificate, consisting of a public and a private key, can be stored in the system.

Public CbCR in the CbCR Sub-Module

Although the public CbC Report is a separate report from classic CbCR, it largely builds on it. For greater reliability and ease of use, public CbCR has been integrated into the existing CbCR sub-module. Public CbCR is currently required by two independent jurisdictions: the European Union (EU) and Australia (AUS). Where this distinction matters, it is addressed explicitly in the following sections.

Group Data Collection

The Group Data Collection has been extended by several public CbCR-specific data points: for a public CbC Report (EU), the checkbox in row pCbC-1.1 must be selected, and for a public CbC Report (AUS), rows AUS-1.1 through AUS-2 must be filled in.

If the classic CbC report is also being created with CbCR, the check box in row pCbC-1.1 must be selected for public CbC Reports (EU).

In addition, the following options are available in the Group Data Collection: Add/omit public information and Add material discrepancy explanation.

Add/omit public information

: This button opens an input form in which information can be omitted from public CbC reporting. The following rows contain all mandatory entries. In later years, this section can also be used to capture information about items that were omitted from public CbC reporting in previous fiscal years.

Fiscal Year

: The Reporting Fiscal Year.

Schema

: EU or Australia. If information is to be omitted in both public CbC Reports, this must be recorded separately for each report.

Jurisdiction

: The jurisdiction or jurisdictions for which the information is to be omitted.

Item

: The item to be omitted.

Explanation

: The justification for the omission.

Save

: Once all mandatory entries have been provided, you must click

Save

Add material discrepancy explanation

: Use this option to record explanations for material discrepancies. These are shown in

Section 5

of the public CbC reports.

Entity Data Collection | Financial Data

The Entity Data Collection | Financial Data section has been extended by the items CbC-1.2a and CbC-1.3a. Both rows relate exclusively to Australian public CbC Reporting. The following items are therefore available:

CbC-1.1a – Revenues and other income from unrelated parties (from CbC-1.1)

: This value is identical to CbC-1.1.

CbC-1.2a – Revenue from related parties that are not tax residents of the jurisdiction

: This is a mandatory entry for public CbCR (AUS).

CbC-1.3a – Total Revenue for public CbCR (AUS)

: This is a sum field (CbC-1.1a + CbC-1.2a).

Calculation | Home

The table in this area has been extended by two columns: Public CbCR (EU) and Public CbCR (Australia). These columns indicate whether the respective public CbC report is included in the snapshot.

Calculation | Home | Perform Calculation

The snapshot creation area has been extended by two rows: Public CbCR (EU) and Public CbCR (Australia). When the check box in one or both of these rows is selected, the respective public CbC report and the associated XBRL and XML files are included in the snapshot.

Calculation

If the selected snapshot contains one or more public CbC reports, the Calculation area is extended by a corresponding drop-down list. The sub-areas Public Report (EU) and Public Report (Australia) follow the same structure, but differ in content. The sub-areas are in turn further divided as follows.

Section 1:

General information – essentially corresponds to the

Group Data

area in classic CbCR.

Section 2:

Information at jurisdiction level – essentially corresponds to

Table 1

in classic CbCR.

Section 3:

Information on the business units located in the individual jurisdictions – essentially corresponds to

Table 2

in classic CbCR.

Section 4:

Omissions

in the current and previous fiscal years, including the respective justifications.

Section 5:

Explanations for

material discrepancies

This content was generated using AI and reviewed by Lucanet subject matter experts before publication.

Last updated on May 29, 2026

Overview

Overview

Creating the DIP Certificate and Setting Up Transmission

Creating the Certificate

Generating Certificate

Creating and Maintaining Units

Maintaining Organizational Structures

Creating Subgroups

Checking Roles and Role Allocation

Working in Pillar 2

Public CbCR in the CbCR Sub-Module

Table of Contents

Company

Legal Notice

First Steps in Pillar 2 and CbCR

Overview

Creating the DIP Certificate and Setting Up Transmission

Creating the Certificate

Generating Certificate

Creating and Maintaining Units

Maintaining Organizational Structures

Creating Subgroups

Checking Roles and Role Allocation

Working in Pillar 2

Public CbCR in the CbCR Sub-Module

Table of Contents

Related Articles

Company

Legal Notice