OECD-Advanced

Excluded Items

The dialogue is to calculate or maintain the taxes on excluded items. The structure of the dialogue is as follows:

Tax Rates
At the top of the dialogue, it is possible to maintain a Current Tax Rate and Deferred Tax Rate. The tax rates can be imported and manually adjusted or completely manually inserted. For any calculations the total (sum of imported and manual value) percentage values are taken for the calculations.
Taxes on excluded items
In general there are three lines for each adjustment of the GloBE Income:
1. The first line states the name of the GloBE Adjustment and with a click on transfer values you can see the adjustment that was made in the dialogue “GloBE Income”. This value is not part of any calculation, but to visualize the Total Amount of the adjustment. In the first line it is also possible to add additional information for the taxes on excluded items such as files or comments.
2. The second line is the line for current taxes on this adjustment. If the excluded item comes with an adjustment in the current taxes, this is done in this row. For the different possiblities to insert the current taxes please read the section below.
3. The third line is the line for deferred taxes on this adjustment. If the excluded item comes with an adjustment in the deferred taxes, this is done in this row. For the different possiblities to insert the current taxes please read the section below.
4. Some Adjustment come with an adjustment that only affects either the current taxes or the deferred taxes. These Adjustments also don’t add up to the sum for the general taxes on excluded items but have a special line in the Global Information Return and therefore also in the Calculation.

There are different possibilities to calculate or insert the taxes linked to the adjustment:

Calculate a suggestion for the tax expense
To calculate a suggestion, an amount excluded has to be inserted in the first column by import. Depending on if the excluded item comes with an adjustment in current tax expense or deferred tax expense, the tax base has to be imported in the first column. The second column then calculates a suggestion with the respective tax rate. It is possible to adjust this suggestion by import (third row) or manually (fourth row).
Three examples:
1. In the easiest case, the Adjustment affects either the current tax expense or the deferred tax expense and there are no tax-free amounts. Then the Amount excluded states the same value as the complete adjustment in the first row. The second column then calculates “Amount excluded times the respective tax rate” and states the result as the suggestion for the tax that needs to be excluded. The amount can be imported from external sources (csv, data transfer) or internal the total amount of the adjustment of the GloBE Income (Transfer Values Mapping).
2. It is also possible, that the adjustment affects both current tax expense and the deferred tax expense. In that case, the tax base needs to be imported from external sources since the user has to decide which share of the amount affected the current tax expense and which share affected the deferred tax expense.
3. In case of tax-free amounts, it is possible, that the amount, or part of the amount excluded does neither affect the current tax expense, nor the deferred tax expense. In this case also an import from external sources (csv, data transfer) is necessary for the amount excluded. The sum of the amounts in the second and third rows won’t add up to the complete amount excluded in the first row in this case.
Import or manual statement of the tax expense that needs to be corrected
It is possible to not import into the first column of the Dialogue. In that case, the Tax Rates don’t need to be filled, and the suggestion stays zero. The amount of tax expense can directly be imported to the third row or manually inserted or adjusted in the fourth row.
It is possible to deviate between the possibilities
For some adjustments the deferred tax expense may be available in the GTC or in the pre-system and therefore immediately mapped to the tax expense. Some adjustments may need to be calculated because there are no information about the tax expense that was connected to this adjustment. It is possible to decide for each adjustment which possibility is the most efficient way to get the tax expense that needs to be corrected.

Dialogue on excluded items

International Shipping

In this dialogue the relevant information to calculate the adjustments in regard to International Shipping is collected. At the current stage it is not connected to the Calculations.