Pillar Two - Determining top-up tax

1. Calculate the ETR for a jurisdiction

1.1. Determine

1.1.1. Net Global Income

1.1.2. Investment entities

2. Calculate Adjusted Covered Taxes

2.1. Current taxes

2.2. Additions

2.3. Deductions

2.4. Additional current top-up tax

2.5. Deferred taxes

2.6. Adjustments

2.6.1. Recast at 15%

2.6.2. Recaptures

2.6.3. Disallowed accruals

2.6.4. Unclaimed accruals

2.7. Post-filing adjustments

3. Does the transitional CbCR Safe Harbour apply?

4. Further information

4.1. [Quick Link](https://library.croneri.co.uk/topic/oecd-pillar-one-and-pillar-two)

4.2. [In-Depth commentary](https://library.croneri.co.uk/btr/771-pilt-1)

5. Calculate the top-up tax

5.1. Top-up tax percentage

5.2. Excess profit

5.2.1. SBIE

5.3. Jurisdictional top-up tax

5.4. Additional current to-up tax

5.5. De minimis exclusion

6. Calculate Globe Income or Loss

6.1. Financial accounting net income or loss

6.1.1. Group GAAP

6.1.2. Market value rule

6.1.3. No purchase price adjustments

6.1.4. No consolidation adjustments

6.2. Required adjustments

6.3. Permitted adjustments

6.3.1. Stock-based compensation

6.3.2. Fair value and impairment

6.3.3. Aggregate asset gain or link

6.3.4. Local consolidation adjustments

6.4. Adjustments for specific circumstances

6.4.1. Refundable tax credits

6.4.2. Intra-group funding

6.4.3. Certain taxes paid by insurance companies

6.4.4. Tier One capital

6.4.5. Group reorganisations

6.4.6. Specific regimes

6.4.7. Shipping exemption