Pillar One Amount A: Marketing and Distribution Profits Safe Harbour

Contents

1. Summary

2. Elimination Profit

2.1 Tax Expense 

2.2 Excluded Non-Portfolio Dividends

2.3 Excluded Non-Portfolio Equity Gain or Loss 

2.4 Included Revaluation Method Gains or Losses

2.5 Policy Disallowed Expenses

2.6 Prior Period Errors and Changes in Accounting Principles

2.7 Accrued Pension Expense

2.8 Stock-Based Compensation Expense

2.9 Hybrid Profit (or Loss)

2.10 Asset Gain (or Loss) Spreading Adjustments

2.11 Integration Asset Gains

2.12 Arms-Length Basis

2.13 Fair Value/Impairment Accounting

2.14 Allocation of income or loss of a Permanent Establishment

2.15 Elimination Losses

3. Elimination Threshold
 
3.1 Depreciation
 
3.2 Payroll Expenses
 
4. Return on Depreciation and Payroll
 
5. The Marketing and Distribution Profits Safe Harbour Calculation
 
6. Example
 
6.1 Step 1
 
6.2 Step 2
 
6.3 Step 3
 
6.4 Step 4
 
6.5 Step 5

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