What's New in Tax Compliance & Reporting?
Come and explore the exciting new features of our solution Tax Compliance & Reporting! We update our CFO Solution Platform on a regular basis to offer you the latest features and improvements.
The versions of all solutions that you are currently using and those of the CFO Solution Platform are displayed when you select About Lucanet from the Help section in the CFO Solution Platform.
Release Notes
- Income Taxes
- Tax Administration
The sub-modules of Income Taxes have been enhanced as follows:
New Features for Tax Return
Provision of ERiC 43.1 and Registration for KapEStA (Capital Gains Tax)
As of this release, Lucanet provides the latest ERiC version 43.1, enabling submissions for existing assessment periods after the minimum version has been increased (expected end of April 2026). In addition, the registration for KapEStA (capital gains tax) for the 2026 assessment period is now available.
Mandatory Use of Tax Transfer Hub as Submission Module
As of release 251015, Lucanet introduced the submission option via Tax Transfer Hub instead of Transfer Client. With the implementation of the latest ERiC version, transmission via Tax Transfer Hub is now mandatory, and transmission via Transfer Client is no longer available for the Tax Return sub-module.
New Features for Tax Accounting
Extended Master Data Import for Companies
Previously, only a basic import for companies was available. Now, the revised, comprehensive master data import is available, enabling users to completely import reporting entities.
Pseudonymization of data
Lucanet has implemented database scripts and functions for pseudonymizing personal user information in all tables of the Income Taxes module. This includes scripts for individual users, period-specific anonymization, and migration from user names to user IDs to ensure data protection-compliant processing.
Enhanced Safe Harbour Exclusions
Lucanet now provides comprehensive Safe Harbour exclusion capabilities to streamline your compliance with Pillar 2 regulations. Non-material entities qualifying for NMCE Safe Harbour can be excluded from full-scope calculations, i.e. workspaces C2 – CE Calculations, C4 – Jurisdictional Blending, and C5 – Top-up Tax Allocation by activating the check box EE-1 in the Entity Election and General Information workspace. Built-in validation warnings alert you when NMCE Safe Harbour is elected but not applicable, preventing potential compliance errors and improving workflow efficiency.
Comprehensive Income Inclusion Rule Implementation
Pillar 2 now features a comprehensive calculation toolkit: The Income Inclusion Rule (IIR) and the Taxable Distribution method for investment entities are now fully integrated, covering all essential Pillar 2 use cases:
- The new Income Inclusion Rule (IIR) functionality ensures proper top-up tax allocation across your group structure. The enhanced C5 report intelligently displays only low-taxed constituent entities, automatically excluding entities from jurisdictions with zero or negative top-up tax. A new Top-up Tax Allocation workspace enables precise allocation to Ultimate Parent Entities (UPE), Partially Owned Parent Entities (POPE), and Intermediate Parent Entities (IPE) based on inclusion ratios. The calculation includes the new element TA-4.1 for aggregating allocated amounts and updated TA-5 formula for QDMTT allocation.
- Lucanet now supports the Taxable Distribution Method election for constituent entity interests in investment entities. This method enables taxation of distributions at rates equal to or higher than the 15% global minimum tax rate. A new allocation workspace facilitates proper allocation of deemed distributions and local creditable tax gross-ups between investment entities and their owners. Enhanced Entity Data Collection captures Taxable Distribution Method elections and share percentages for undistributed net GloBE income. The CE Calculation includes new sections tracking undistributed net GloBE income and historical data, with proper exclusion of amounts from Effective Tax Rate calculations. Adjustments automatically impact INC-2.24 and CT-2.16, ensuring accurate Pillar 2 compliance.
Seamless Transition Rules
From preparation through allocation to the recapture of deferred taxes – the Transition Rules are now mapped out in significantly greater detail, making practical implementation easier for you:
- New transition rule provisions facilitate smooth adoption of the global minimum tax framework. These rules properly manage deferred tax adjustments when entities first become subject to GloBE rules, recognizing deferred tax assets at whichever rate is lower: the domestic tax rate or the 15% global minimum rate. The system handles pre-existing losses and timing differences to prevent artificially low Effective Tax Rates during initial GloBE application. Transitional safe harbours can exclude certain operations in initial years, reducing compliance burden while ensuring accurate calculations.
- The new Deferred Tax Liability (DTL) recapture functionality ensures accurate adjustments to Effective Tax Rate (ETR) and top-up tax calculations when material decreases in deferred tax liabilities occur for prior years. A new Recapture workspace in the Entity Data Collection tracks DTLs subject to recapture rules across fiscal years, including amounts from the fifth preceding year and aggregate recapture accounts. The system automatically identifies and processes DTL adjustments in C2 and C4 calculations, correcting previously claimed deferred tax benefits that reduced top-up tax liability, ensuring compliance with OECD Pillar 2 recapture requirements.
Redesign of Master Data
The master data management of the Tax Administration module has been completely revised – your foundation for full XML reporting capability from mid-2026 onwards.
Important Notice: Tax Administration Module Becomes Mandatory
The Global Information Return (GIR) reporting requires complete documentation of all changes in your ownership structure throughout the entire reporting period. To meet this requirement, Lucanet has developed a timeline view for company master data.
Starting with release 260106, the Tax Administration module becomes a mandatory component and must be installed. This is where the timeline view will be activated for the first time, forming the foundation for your complete GIR reporting capability.
Various Enhancements for CbCR
With the integration of the Tax Transfer Hub, Lucanet is setting new standards for your CbCR reporting process:
- Tax Transfer Hub as central hub: Manage the transmission and retrieval of all CbCR reports centrally in one place – for maximum efficiency and traceability.
- Optimized submission workflow: Our completely redesigned submission workspace guides you through the reporting process even more intuitively, saving valuable time.
- Full transparency at a glance: The new status overview displays the current status of all reports at any time and provides direct access to transmission logs.
Unit Import Enhancements
Tax Administration now prevents multiple users from importing units simultaneously by locking the import process. Enhanced validation checks detect common errors, such as missing mandatory fields, invalid date ranges, and circular relationships.
Enhancements for the Import of Company Structures
The import of company structures has been enhanced as follows:
- You can now import complete organizational structures from Excel files. The import wizard guides you through uploading company structures and tax group structures, validating relationships between entities, and detecting errors before saving.
- When importing organizational structures, Tax Administration now supports module-specific structure types. Whenever you download import templates or upload structure files, Tax Administration adapts fields and validation rules based on the selected structure type.
Classification of Companies as Natural Persons
You can now classify companies as natural persons and mark companies as external entities. The company master data includes a new legal form option for natural persons and a check box to identify companies as external entities. This enables you to distinguish between group companies and external parties, improving data organization and reporting accuracy for consolidation purposes.
Enhancements to DIP Certificate Generation
DIP (Digitaler Posteingang, digital inbox) certificates now support multiple BZST account IDs. You can enter comma-separated account IDs in the new account field, allowing you to associate one certificate with multiple accounts.
- Tax Administration
- Income Taxes
- Tax Balance
Smart Excel Templates for Importing Company Data with Module-Specific Fields
The new Excel template simplifies company data imports by automatically including all relevant module-specific fields. Tax Administration dynamically generates templates that contain the correct column headers matching your configured modules and plugins, eliminating manual template creation and reducing import errors. You can now download pre-configured templates, specify your company data, and successfully import the data in one streamlined process.
The sub-modules of Income Taxes have been enhanced as follows:
New Features for Tax Accounting and Tax Return
REST API Export Interface for Data Analysis
The new REST API Export Interface enables you to seamlessly export income tax data to external analysis and reporting systems such as Power BI, Tableau, or custom solutions. The interface features secure, role-based authentication via personal API keys, flexible control of export format and content, and optional data export in group or local currency.
The setup is straightforward: Generate an API token in the Tax Administration module and optionally configure position mapping.
The standardized interface provides direct access to tax data in real time and supports a modern, integrated financial reporting landscape.
Workflow Automation for Reporting Entities
Save valuable time by automating recurring manual tasks in current and deferred tax calculations. With a single click, proposed values are automatically accepted and tax calculations are performed. Milestones are completed in the correct sequence from current taxes through deferred taxes to the tax reconciliation (TRR).
The new workflow function is available under Interfaces | Structure in the Master Data folder. You can define up to three different automation processes depending on the materiality and complexity of your entities, reducing manual errors and supporting compliance requirements.
New Feature for Tax Accounting: Gradual Reduction of German Corporate Tax Rate
In view of the gradual reduction of German corporate tax beginning in 2028, Tax Accounting offers two calculation approaches for the correct determination of deferred taxes:
Precise calculation clusters temporary differences by estimated reversal date and assesses them using the applicable tax rate, while simplified calculation distinguishes between short-term reversing differences (15%) and long-term reversing differences (10%).
Tax Accounting now includes:
- Country-specific configuration of new columns - entities in other countries remain unaffected
- An automatic split differences function in the balance sheet comparison for assigning specific balance sheet positions to dedicated columns, which is particularly useful for the simplified calculation.
Both approaches ensure full compliance with the new statutory requirements and give you the flexibility to choose the calculation method that best suits your complexity and reporting requirements.
New Feature for Tax Return: Tax Transfer Hub Replaces Transfer Client
Tax Return introduces a completely redesigned submission process that replaces the previous Transfer Client with the new, modern Tax Transfer Hub. This strategic enhancement creates the foundation for a unified, cross-module submission architecture throughout the entire TCR solution. The three-step process guides you through:
- Selecting tax type and snapshot configuration
- Configuring, i.e. adding tax-type-specific fields and additional information
- Monitoring, i.e. real-time transfer progress tracking
The new solution features clear process separation with validation and submission as two separate processes and optimized progress tracking. This ensures full compliance with German tax authority requirements and makes the TCR solution more scalable and easier to maintain.
Enhanced QDMTT Calculation and Reporting Capabilities
The new release of the Pillar 2 module provides significantly more options for creating QDMTT (Qualifying Domestic Minimum Top-Up Tax) reports and providing the necessary information for QDMTTs.
The Jurisdictional Data Collection now allows you to adapt calculations to national legislation – for example, by entering different Top-up Tax Rates, Substance-Based Income Exclusion Percentages, or Deviating de Minimis Thresholds. Additionally, you can provide detailed information on currency elections and the GAAP used for the QDMTT.
This information is processed directly in the calculation when you select a QDMTT Snapshot. This new snapshot type forms the basis for QDMTT reports and is available for each country that has been designated as having a QDMTT in the Jurisdictional Data Collection. As a first step before we expand this process further, a QDMTT Snapshot can already be selected as the data source for the Global Information Return.
New NMCE Safe Harbour Capabilities
As non-material constituent entities (NMCEs) gain importance for reporting, a new workspace has been implemented in the calculation. All entities flagged as non-material entities are automatically included in the NMCE Safe Harbour. The Entity Election for the Non-material Entity Safe Harbour can be selected in Entity Election and general information for non-material entities, and the entity will be excluded from all subsequent calculations (CE Calculation, Jurisdictional Blending).
Enhancement of International Shipping Income Calculation
To fully address the unique requirements of International Shipping Income, the Pillar 2 sub-module has been enhanced. The International Shipping workspace in the Entity Data Collection has been redesigned and expanded based on client needs. The CE Calculation has been adapted accordingly: International Shipping Income is now calculated at the bottom of the workspace, taking into account the cap on Ancillary Shipping Income. The aggregation for Jurisdictional Blending has been adjusted accordingly.
CbCR Declaration
Following the BZSt's announcement not to use the DIP interface yet, the sub-module now provides ELMA XML download for the CbCR declaration. The XML file can be downloaded in the detail view of the snapshot.
CbCR Reports
The CbCR sub-module now offers the ability to export your Country-by-Country data as an Excel report, providing additional possibilities for further analysis.
Independent Use of Pillar 2 and CbCR
From now on, the Pillar 2 and CbCR sub-modules can be used independently from the Tax Accounting and Tax Return sub-modules. This option reduces complexity while maintaining full access to all international tax compliance features. You benefit from cleaner navigation with module-specific interfaces tailored to your reporting requirements.
Validation Reports for Milestones
To ensure that data and procedures are verified before closing a milestone in Pillar 2 and CbCR, the following new options are now available: Closing Pillar 2 milestone, Reviewing Pillar 2 milestone, Closing CbCR milestone, and Reviewing CbCR milestone.
You can define your individual validations in an Excel report using the Reporting Engine. The new validation options can be set up under Interfaces | Structure in the Master Data folder of the Income Taxes module.
A milestone can only be increased to the next process status if the validation requirements have been fulfilled.
Tracking and Displaying Import Metadata
It is now possible to track import metadata to display import date and user information for Value Transfer, Income Tax, and External imports for Tax Questionnaire, CbCR, and Pillar 2. The import metadata is now included in technical ID reports (GTC-IDs).
Exporting Entity Data Collection Values for Data Analysis
Using the newly implemented REST interface, it is now possible to export values from the Entity Data Collection folders of Pillar 2, CbCR, and Tax Questionnaire, enabling you to further analyze the data in a BI tool, for example.
Taxonomy 6.9 available
As of now, Taxonomy 6.9, which must be used for the 2026 or 2026/2027 fiscal year, can be selected in the GCD master data, during master data import, or when creating or editing tax balance sheets.
Productive transmission is not yet possible with this taxonomy, but early selection allows you to prepare and validate the balance sheets for the upcoming fiscal year already now.
Compared to the previous year, the new taxonomy contains two significant changes:
- The field Type of report has been removed from the company's identification characteristics and may no longer be reported.
- Account statements must be submitted for all mandatory fields. To do this, the report component Account Balances must be announced in the GCD master data.
- To make it easier for you to comply with this requirement, the report component Account Balances is now activated by default when importing master data and can be deactivated by the user if necessary.
New Report on Development of Taxable and Deductible Differences
The new report type Development of Taxable and Deductible Differences can now be selected in the Reporting workspace. The report tracks the development of tax adjustments over several years and displays key information such as adjustment details, balance sheet items, asset differences, and annual changes.
New Functional Area for Reporting
In addition to Master data, Company, and Administration, the Reporting area is now available in the overview.
In this functional area, you can now create the Instance report and the new report Development of Taxable and Deductible Differences.
New Authorization Object 'Execute TDH Interface'
We implemented a new authorization object called Execute TDH Interface. When executing a TDH interface, this object is needed in addition to the existing authorizations to retrieve accurate account data from SAP.
The object includes more extensive authorizations than the View Accounts object because, depending on how the RFC interface is implemented, it can be used to query more current and detailed data.
Optimized User Interface and Usability
- To standardize the user interface, the quick delete button (trash can icon) that was available on the overview pages of some lists has been removed. However, you can still delete elements via their detail dialog.
- In addition, a function has been introduced that allows you to delete multiple elements at once, for example, to efficiently remove all or several tax adjustments after an incorrect import or conversion, or to delete only the values of the current tax balance sheet.
- The 3-dot menu in the upper right corner of forms and tables has been replaced by the More Actions button. This allows important functions to be found more quickly and captured by screen readers.
- The filter functions above lists are now displayed as a toggle button instead of a check box. This makes it clear that a change can be undone at any time and that the change made is immediate and persistent.
The new solution Lucanet Tax Compliance & Reporting is now available on our Lucanet CFO Solution Platform!
With our Tax Compliance and Reporting solution, we offer an efficient tool to optimize your tax declaration processes. Tax Compliance & Reporting helps you keep pace with changing tax regulations, manage cross-border tax reporting, and create audit-proof documentation. The following modules are included in Tax Compliance & Reporting:
- Tax Administration
- Income Taxes
- Tax Balance
Our Lucanet module Tax Administration provides global master data administration for your TCR modules, such as:
- Managing users or assigning roles to users
- Uploading and managing certificates, e.g. ELSTER certificates
- Designing email templates that are sent to users of Tax Compliance and Reporting in response to specific events
The Income Taxes module provides a central and flexible platform for comprehensive tax management, helping companies efficiently fulfill their tax obligations while ensuring compliance. The solution optimizes every aspect of tax processes and provides an intelligent platform that manages the entire tax lifecycle.
Income Taxes contains the following sub-modules:
Tax Accounting is a sub-module of Income Taxes and serves as a central platform for the calculation of current and deferred taxes in the context of tax reporting under IAS 12. The system automatically generates the corresponding disclosures for the notes and thus optimizes the entire tax accounting process.
Tax Accounting offers the following benefits, among others:
- Automated tax calculation: Calculations of deferred and actual taxes in compliance with regulations and in accordance with IAS 12, IAS 34, and Section 274 of the German Commercial Code (HGB)
- Group-wide data consolidation: Aggregation and harmonization of tax data from all companies
- Workflow management: Real-time monitoring of progress and deadlines with integration into financial processes
- Multi-system integration: Direct connection to ERP systems, financial systems, and third-party tools
- Period-specific data separation: Clear distinction between reporting periods
- Flexible parameterization: Customizable company-specific settings
- Standardized compliance processes: Consistent procedures to minimize audit risks
- Complex tax structure management: Management of multi-layered tax group structures
Tax Return is a sub-module of Income Taxes and offers a comprehensive solution for the preparation, management, and electronic filing of German tax returns in accordance with local tax regulations. The sub-module optimizes the entire tax return process from data collection to final submission to the German tax authorities, ensuring full compliance with all regulatory requirements.
- End-to-end tax reporting solution: Complete management from data collection to electronic transmission
- Electronic transmission: Direct transfer of trade and corporate income tax, as well as breakdowns, assessment notices, and related attachments to German authorities
- Compliance: Compliance with German regulatory requirements using validation functions
- Central master data administration: Uniform data administration at company level for consistent data processing
- Standardized transfer workflow: Guided processes for data entry, validation, approval, and final transfer
- Snapshot functionality: Complete audit trail through automatic backup and restore functions
- Seamless integration: Shared database with the Tax Accounting sub-module
- Data security and auditability: Protection of sensitive tax data with complete transmission history
The Pillar 2 sub-module supports the calculation, analysis, and reporting of global minimum tax obligations in accordance with the OECD’s Pillar 2 requirements. The module includes integrated data evaluations for Safe Harbour checks, CE calculations, de minimis assessments, jurisdictional blending, and allocation of top-up tax amounts. Rule-based calculations and scenario analyses enable a comprehensive understanding of effective tax rates, proactive risk mitigation, more efficient compliance, and strategic planning support for multinational corporations.
Key benefits of Pillar 2 include:
- Data input sheet: Easily evaluate the GloBE tax base and the adjusted covered taxes per group entity.
- Transitional CbCR Safe Harbour: Perform the transitional CbCR Safe Harbour check at jurisdiction level using only the data required for the Simplified ETR Test, de minimis test, or Routine Profits Test.
- Automatic data aggregation: Aggregate data by jurisdiction, taking into account additional blending groups such as joint ventures.
- Master data transfer: Use master data from other TCR modules to avoid redundant data maintenance.
- Roles and permissions concept: Customize roles and permissions to individual or company-specific requirements.
- Period concept: Plan and simulate using our flexible period concept.
- Milestone concept: Ensure accuracy through the four-eyes principle.
- Flexible data integration: Connect data sources via CSV import, web service, and other standard interfaces.
- Transaction data transfer: Transfer transaction data (IFRS or tax values) from other TCR modules.
- Documentation of adjustments: Add comments and documents to adjustments.
- Jurisdiction-specific adjustments: Perform jurisdiction-specific adjustments in accordance with the GloBE ruleset.
- Carve-out rules: Define and document relevant carve-out rules, including the CbCR Safe Harbour test.
- Flexible reports: Create and evaluate flexible reports.
The CbCR (Country-by-Country Reporting) sub-module enables the automated collection, validation, and reporting of country-specific data in accordance with OECD guidelines and local regulations. The CbCR module includes features for data integration and audit workflows and provides ready-to-use reports. This allows for a comprehensive overview of global tax obligations, improved compliance, reduced manual effort, and increased audit readiness.
Key benefits of CbCR include:
- Overview of jurisdictions and entities with CbCR-relevant key figures: Table 1 provides detailed insights at the jurisdiction level, while Table 2 offers a clear breakdown by constituent entities (CEs).
- Adding additional information: Users can add customer-specific supplementary information for each jurisdiction — or combination of jurisdictions — for any point in the report. Comments can be provided in multiple languages to ensure clear communication in key languages. All additional information is seamlessly integrated and displayed as Table 3 in the CbCR report, providing the tax authorities with a more complete and transparent overview.
- Integration of Pillar 2 and CbCR for the Pillar 2 Safe Harbour Check: The integration between the CbCR and Pillar 2 modules simplifies the process by enabling the data required for the Safe Harbour Check to be imported directly from the CbCR module.
- Reporting and interfaces to tax authorities: The CbCR module simplifies country-by-country reporting by generating fully compliant XML files that meet both international and national requirements. It adapts to different reporting obligations in various jurisdictions, ensuring smooth and straightforward compliance with global standards and national laws.
- Validations and XML verification: The CbCR module ensures the accuracy and reliability of your country-by-country reports through comprehensive validations at every stage. From input data to calculation results to the final XML output, the submodule performs rigorous checks to identify inconsistencies and errors early in the process.
Our Lucanet Tax Balance module offers you the ability to create and maintain a tax balance sheet and to electronically submit it to the tax authorities as an XBRL-based E-Balance Sheet (E-Bilanz) in accordance with § 5b EStG.
Tax Balance supports all taxonomies published by the German Federal Ministry of Finance for the transmission of the E-Balance Sheet and provides an intuitive user interface.
Key features include:
- Precise modeling of complex corporate structures, including parent companies, intermediate controlling entities, and dependent units
- Adjustment levels for versioning and documentation
- Flexible import options via various file formats, SAP systems, Lucanet databases, and more.
- An intuitive and powerful mapping dialog for effortless assignment of accounts to the taxonomy
- Seamless integration with the Tax Compliance and Reporting solution for direct transfer to the Income Taxes module and efficient preparation of the tax return
- Master data administration for the Global Common Document (GCD) module of the taxonomy
- Management of capital accounts and special/supplementary balance sheets
- Multi-year comparisons for transparent analysis across different reporting periods
- Creation and validation of E-Balance Sheets for submission to tax authorities
- Reporting functions, such as instance reports of the E-Balance Sheets and balance sheet overviews with tax adjustments