Data Points For the Transitional CbCR Safe Harbour

The safe harbour is limited and applies to fiscal years beginning on or before December 31, 2026 but not after June 30, 2028 (as provided in the OECD Safe Harbours and Penalty Relief Rules). 

The purpose of the safe harbour is to ease compliance difficulties that MNEs will face and in particular the significant systems changes required to collect the data for full GloBE calculations.

As such, the safe harbour can provide significant relief to MNEs that qualify during the transitional period.

Data extraction for the CbCR safe harbour will require extracting data so that the tax department has the required information to determine whether the safe harbour applies.

The first step to assessing whether the safe harbour applies is to identify the correct data points and ensure there are processes in place to accurately extract the required data.

There will be overlap with already existing data points that the MNE currently collects for financial accounting or tax purposes, but the GloBE specific requirements will impact on what needs to be sourced.  

Data will need to be extracted from the CbC Report, financial statements and Enterprise Resource Planning Systems and Enterprise Performance Management Systems. Group structure information will also be required (eg to determine the allocation of the substance-based income exclusion between a main entity and a permanent establishment for the routine profits test).

Data Points