Build the Pillar Two GloBE Information Return (GIR)

Skill: Convert MNE constituent-entity data into the OECD GloBE Information Return XML

Region: Global (OECD/G20 Inclusive Framework — Pillar Two) Category: Tax — OECD GloBE Information Return (GIR), Pillar Two global minimum tax (15%) Does: Takes multinational-enterprise (MNE) group data — constituent entities, jurisdictional financials, covered taxes — and produces the OECD GloBE Information Return (GIR) XML: the corporate-structure section, the per-jurisdiction effective-tax-rate (ETR) and top-up-tax computation, and safe-harbour elections. Schema version: OECD GIR XML Schema v1.0 (GloBE Model Rules; first filings generally due 30 June 2026 for FY2024)

The AI assembles the return from the figures you provide; it does not perform an audit or replace a tax adviser. Pillar Two is highly complex (CbCR Transitional Safe Harbour, QDMTT, IIR, UTPR interactions). Confirm the jurisdiction of filing, the GIR schema version, and local transposition before submission — Pillar Two computations should be reviewed by a qualified adviser.

When this applies

• An MNE group with consolidated revenue ≥ €750m in ≥2 of the prior 4 years (the CbCR threshold).
• Filing the central GIR with the Ultimate Parent Entity's tax authority (or a Designated Filing Entity), exchanged with other jurisdictions.
• Asserting a Transitional CbCR Safe Harbour to switch off the full computation for qualifying jurisdictions.

Build procedure

1. Read the source — constituent-entity register (name, TIN, jurisdiction, entity type), per-jurisdiction GloBE income/loss, covered taxes, and any safe-harbour test inputs (CbCR revenue/PBT, simplified ETR).
2. Build the corporate structure — UPE identity, the ownership tree, and each constituent entity with its tax jurisdiction.
3. Group by jurisdiction — aggregate GloBE income and adjusted covered taxes per jurisdiction.
4. Compute the jurisdictional ETR — ETR = adjusted covered taxes ÷ net GloBE income.
5. Compute top-up tax — if ETR < 15%, top-up % = 15% − ETR; apply to excess profit (GloBE income − Substance-Based Income Exclusion); reduce by any QDMTT paid.
6. Apply safe harbours — where a Transitional CbCR Safe Harbour test is met, record the election and the qualifying test (de minimis / simplified ETR / routine profits) instead of the full computation.
7. Emit the GIR XML — corporate structure + jurisdictional sections, per the worked example.
8. Validate — work through the checklist.

Source → GIR field map

Document structure (GIR)

GIR
├── MessageSpec        (SendingEntity, TransmittingCountry, ReportingPeriod, MessageType)
└── MNEGroup
    ├── UPE            (Name, TIN, ResCountryCode)
    ├── CEDetails      (each ConstituentEntity: Name, TIN, ResCountryCode, EntityType)
    └── JurisdictionalReporting ...   (one per jurisdiction)
        ├── ResCountryCode
        ├── SafeHarbour (optional — Type, Test)
        ├── GloBEIncome
        ├── AdjustedCoveredTaxes
        ├── ETR
        ├── SBIE
        ├── ExcessProfit
        ├── QDMTT
        └── TopUpTaxAmount

Code tables

Safe-harbour type (Transitional CbCR)

Charging mechanism

Calculation rules

• ETR = Adjusted Covered Taxes ÷ Net GloBE Income (per jurisdiction, not per entity).
• Top-up % = max(0, 15% − ETR).
• Excess Profit = Net GloBE Income − SBIE, where SBIE = payroll carve-out % × eligible payroll + tangible-asset carve-out % × eligible assets (transition percentages apply).
• Jurisdictional Top-up Tax = Top-up % × Excess Profit − QDMTT.
• A valid safe-harbour election sets the jurisdiction's top-up tax to zero without the full computation.

Worked example (end-to-end)

Input — one low-taxed jurisdiction (Country X)

Net GloBE income €20,000,000; adjusted covered taxes €2,400,000; SBIE €5,000,000; no QDMTT.

After computation (intermediate)

• ETR = 2,400,000 ÷ 20,000,000 = 12% → below 15%.
• Top-up % = 15% − 12% = 3%.
• Excess profit = 20,000,000 − 5,000,000 = €15,000,000.
• Top-up tax = 3% × 15,000,000 = €450,000.

Output — GIR XML (extract)

<?xml version="1.0" encoding="UTF-8"?>
<GIR xmlns="urn:oecd:ties:gir:v1" version="1.0">
  <MessageSpec>
    <SendingEntityIN>UPE-TIN-001</SendingEntityIN>
    <TransmittingCountry>IE</TransmittingCountry>
    <ReportingPeriod>2024-12-31</ReportingPeriod>
    <MessageType>GIR</MessageType>
  </MessageSpec>
  <MNEGroup>
    <UPE>
      <Name>Global Holdings plc</Name>
      <TIN issuedBy="IE">IE1234567T</TIN>
      <ResCountryCode>IE</ResCountryCode>
    </UPE>
    <CEDetails>
      <ConstituentEntity>
        <Name>GH Country X Ltd</Name>
        <TIN issuedBy="XX">XX99887766</TIN>
        <ResCountryCode>XX</ResCountryCode>
        <EntityType>StandardCE</EntityType>
      </ConstituentEntity>
    </CEDetails>
    <JurisdictionalReporting>
      <ResCountryCode>XX</ResCountryCode>
      <GloBEIncome currCode="EUR">20000000.00</GloBEIncome>
      <AdjustedCoveredTaxes currCode="EUR">2400000.00</AdjustedCoveredTaxes>
      <ETR>0.1200</ETR>
      <SBIE currCode="EUR">5000000.00</SBIE>
      <ExcessProfit currCode="EUR">15000000.00</ExcessProfit>
      <QDMTT currCode="EUR">0.00</QDMTT>
      <TopUpTaxAmount currCode="EUR">450000.00</TopUpTaxAmount>
    </JurisdictionalReporting>
  </MNEGroup>
</GIR>

Validation checklist

• €750m revenue threshold confirmed; reporting fiscal year correct
• UPE and every constituent entity listed with TIN and ResCountryCode
• GloBE income and adjusted covered taxes aggregated per jurisdiction
• ETR = taxes ÷ income; top-up % = 15% − ETR (floored at 0)
• SBIE deducted to reach excess profit; QDMTT credited
• Safe-harbour elections carry a valid test and zero the top-up
• Validated against the OECD GIR XML schema and the filing jurisdiction's rules
• Computation reviewed by a qualified Pillar Two adviser

Last updated: 2026-06-12 — confirm the OECD GIR XML schema version, the local transposition (IIR/QDMTT/UTPR) and the safe-harbour ETR thresholds for the relevant year before filing.