Technology

Pillarworks.

Pillarworks · How it works

From the first import to the finished GIR file.

How your tax department gets started with Pillarworks – and how a fiscal year runs in it, with the steps and terms of the application.

What this means for your tax function

  • One processProvision and minimum tax report in one process on one data set – to the finished GIR XML file in the authority’s format.
  • On recordThe locked year, the claim per jurisdiction and the calculation steps stay on record.
  • Your dataYou start with the data your tax department already has – no integration project.

Part 1 · Getting started

Four steps. To the first provision.

You start with the data your tax department already has – no integration project and no ERP integration.

  1. Demo on a fictional group

    One hour, online, with one of the founders – using the fictional group Aurora Energie SE. You send us no data and prepare nothing.

    • Aurora Energie SE · fictional

    ResultA picture of the process

  2. Import or set up the structure

    A new project in a few steps: group, fiscal year, scope, calculation approach, quick start. If you have a GIR, import it – the group structure and data are then pre-filled.

    • Import from GIR filing
    • Group & structure

    ResultGroup structure

  3. Import the country reports

    Country-by-country reports via Excel template, as XML or entered manually – per year, one source for the safe harbour tests and the GIR. The German formats and the OECD format of the country-by-country report are supported.

    • Excel template
    • Import country report (XML)

    ResultCountry reports per year

  4. The first provision

    Safe harbour tests per jurisdiction, full calculation where needed – resulting in the top-up tax provision for the consolidated accounts, per parent entity and jurisdiction, before and after safe harbour.

    • CbCR safe harbour
    • Provision & analysis

    ResultProvision

  • Pillarworks: group and structure with group master data and structure overview
    Step 02 · Group & structure · excerpt · fictional values
  • Pillarworks: country reports per year with import via Excel template, XML or manual entry
    Step 03 · Country reports · excerpt · fictional values
  • Pillarworks: provision calculation, group overview with provision before and after safe harbour
    Step 04 · Provision calculation · excerpt · fictional values

Part 2 · A year with Pillarworks

One year, three phases. Locked, transferred, carried forward.

This is how a fiscal year runs in Pillarworks – from the provision to the next year. Every step carries the name it has in the application.

Annual cycle in Pillarworks Ring with six steps: Phase 1 – Provision, Lock the year, Take over into the reporting phase, Phase 2 – Report & return, Phase 3 – Submission, Create the next year with data carry-over – then the ring starts again.

Scope of the year

Full compliance
Provision for the consolidated accounts and the minimum tax report – the complete process in one year.
Provision only
Only the provision for the consolidated accounts – the minimum tax report is not part of this year.
Report only
Data entry, safe harbour testing and full calculation run in full; only the presentation of the provision is omitted.
  1. 01 Phase 1 – Provision Top-up tax provision for the consolidated accounts based on the data available, with the safe harbour approximation using prior-year CbCRs. Phase 1 without presenting the provision
  2. 02 Lock the year The provision computation is retained as evidence.
  3. 03 Take over into the reporting phase The reporting phase works on a working copy; the locked provision stays untouched.
  4. 04 Phase 2 – Report & return Safe harbour tests on the fiscal year’s CbCR, full calculation on actual figures and “Create & review GIR” on the working copy: the XML file is only produced once the check against the mandatory fields and the implemented validation rules passes without errors.
  5. 05 Phase 3 – Submission Your group submits the finished file through the channel the authority provides; Pillarworks does not transmit it itself.
  6. 06 Create the next year with data carry-over Structure and master data carry over into the following year.
Result Finished file – submitted by your group GIR XML following the OECD specification in the authority’s profile – BZSt, BMF (FinanzOnline), Skatteverket, Belastingdienst. Produced only once the check passes without errors; Pillarworks does not transmit it itself.

The interface shows only the steps the chosen scope needs.

Annual cycle · schematic
Pillarworks: dialog choosing the scope of the year with full compliance, report only and provision only
Dialog · scope of the year · excerpt · fictional values
Pillarworks: locked fiscal year – steps provision & analysis and lock the year completed, below phase 2 with take over into the reporting phase and create & review GIR
Locked year · steps · excerpt · fictional values

Strategies and test levels

You choose the calculation path. And see which jurisdiction now needs a full calculation.

Per year you choose how the provision is determined: compute every jurisdiction in full, or safe harbour first.

01

Full calculation for all countries

Full calculation for all jurisdictions; the CbCR safe harbour test is computed as well and reported per jurisdiction.

  • Country A
  • Country B
  • Country C
  • Country D
  • Country E
  • Country F
Full calculation6 / 6

safe harbour test computed as well, reported per jurisdiction

02

Safe harbour first

First the CbCR safe harbour test from the prior years; full calculation only for jurisdictions that do not pass the test.

  • Country A
  • Country B
  • Country C
  • Country D
  • Country E
  • Country F
Safe harbour test
covered*Country A ·Country B ·Country C ·Country E
Full calculationCountry D ·Country F

* covered only once the claim is confirmed

Example · six jurisdictions · fictional values

In the “Report only” scope the order is fixed: the safe harbour test runs first, the full calculation follows for the jurisdictions that did not pass.

Two test levels

Prior-year approximation. Against the GIR year.

For the close, Pillarworks tests by approximation using the prior-year CbCRs; for the GIR, on the CbCR of the fiscal year. The comparison shows the jurisdictions that require a full calculation on the fiscal year’s CbCR, unlike in the approximation.

Example · five jurisdictions · fictional values
JurisdictionPrior-year approximationGIR year
Country A covered covered
Country B covered covered
Country C full calculation required full calculation required
Country D covered full calculation required now requires full calculation
Country E covered covered
Pillarworks: dialog choosing the calculation strategy with full calculation for all countries and safe harbour first, plus the basis of the safe harbour test
Dialog · calculation strategy · excerpt · fictional values
Pillarworks: CbCR safe harbour, comparison of the prior-year estimate with the fiscal year’s country-by-country report per jurisdiction, column change
CbCR safe harbour · comparison · excerpt · fictional values

Claim per jurisdiction and year

“Once out, always out”. Per jurisdiction, through to the GIR XML.

Whether the relief is claimed is recorded per jurisdiction and year. A passed test that is not claimed: the jurisdiction is computed in full. If the transitional safe harbour is not claimed for a jurisdiction in one year, or the jurisdiction passes no test, it is precluded for that jurisdiction in subsequent years.

Example · three jurisdictions, three years · fictional values
JurisdictionYear 1Year 2Year 3GIR‑XML
Country A covered covered covered covered
Country B covered computed in full Permanently excluded precluded precluded
Country C full calculation required Permanently excluded precluded precluded precluded
  • coveredtest passed, relief claimed
  • computed in fulltest passed, relief not claimed
  • precludedcomputed in full in subsequent years
  • full calculation requiredtest not passed

Pillarworks carries that status through to the GIR XML.

What is recorded

Every version has a source. In the following year, too.

01Lock the year
The provision computation is retained as evidence.
02Working copy
The reporting phase works on a working copy; the locked provision stays untouched.
03Claim
Recorded per jurisdiction and year – through to the GIR XML.
04Calculation steps
Calculation steps and the reference to the OECD rule and the local law sit at the result.
05Minimum Tax Plausibility Report
A traceable record of the locked computation, printable as PDF.
06Next year
Structure and master data carry over into the following year.
Pillarworks: print view of the Minimum Tax Plausibility Report chapter “Management overview” of the locked computation
Minimum Tax Plausibility Report · print view · excerpt · fictional values

See the process live. Using the fictional group Aurora Energie SE.

One hour with one of the founders – from the import to the GloBE Information Return. You prepare nothing.

Request a demo All features in detail

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