Step 5 of our approach consists of 'calculation & documentation'. This step is focused on the calculation of the effective tax rate on a jurisdictional level.
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Pillar Two introduces a new method to calculate the effective tax rate. In short, the calculation consists of dividing the GloBE income by the qualifying taxes. Both the income and the taxes are based on what is reported in the financial reports. However, for both the GloBE income and the qualifying taxes, certain corrections need to be made. Step 4 in our Pillar Two roadmap focuses on gathering the data points necessary to make these corrections. 

Once it is clear that the effective tax rate in a certain jurisdiction is below 15%, it should be determined who will file the relevant top-up tax return. That will be step 6. There are three ways of allocating taxing rights between the countries in which the group is active.

With respect to the documentation aspect, we are currently developing a documentation tool that will serve as a base file for the pillar Two compliance process. We will provide you with an update when a demo becomes available.