Reporting BEPS Pillar 2 GloBE Information Return in XML

Global minimum tax is now in force. If your group is in scope of BEPS Pillar 2, you must calculate, prepare and file the GloBE Information Return (GIR) in the required XML format.

XML Authority is built for this type of schema-based reporting. It does not perform BEPS Pillar 2 calculations. You bring in results from your existing Pillar 2 engine, and XML Authority converts them into GloBE Information Return XML and validates the file against the official schema.

What is BEPS Pillar 2 reporting – and why is XML part of it?

Under the OECD’s BEPS Pillar 2 GloBE rules, in-scope multinational groups must:

• Calculate a jurisdictional effective tax rate (ETR).
• Identify jurisdictions where the ETR is below 15%.
• Calculate Pillar Two top-up tax (including QDMTT, IIR and UTPR).
• Report the results in a standardised GloBE Information Return (GIR).

Tax authorities receive the GIR as XML, using an OECD-defined schema. This XML:

• Is machine-readable, so authorities can use it for risk assessment, analytics and information exchange.
• Must follow the official schema; if the structure does not match, the file can be rejected.
• Can be used by more than one authority where information-sharing agreements apply.

In practice, BEPS Pillar 2 is both a calculation task and a structured XML reporting task. XML Authority focuses on the reporting task.

What needs to go into the GloBE Information Return?

The GIR combines group-level and jurisdiction-level data in a single standard format. At a high level, it covers four main areas.

1. What group-level BEPS Pillar Two data do you need to report?

The GIR must clearly identify:

• The MNE Group and Ultimate Parent Entity (UPE).
• The Filing Constituent Entity.
• A high-level overview of the jurisdictions where you operate, including where QDMTT, IIR or UTPR applies.

This gives tax authorities a clear view of the group they are assessing and the jurisdictions in scope.

2. What do you need to report on jurisdictional safe harbours and exclusions?

For each jurisdiction, you must explain how Pillar 2 applies there, including:

• Whether any safe harbours apply, including transitional safe harbours.
• Whether any entities are treated as Excluded Entities.
• When a jurisdiction falls fully under a safe harbour and only limited data is supplied.

These positions must be reflected correctly in the GIR XML. Errors here can lead to missing data or questions from authorities.

3. What GloBE calculation inputs does the GIR require?

Where full BEPS Pillar 2 calculations are needed, the GIR includes:

• GloBE Income or Loss for each jurisdiction.
• Adjusted Covered Taxes for each jurisdiction.
• Inputs for the substance-based income exclusion, such as payroll and tangible assets.
• Relevant deferred tax and timing adjustments.

These values come from your Pillar 2 calculation engine or model. XML Authority’s role is to place them in the correct locations in the GIR structure.

4. How should you report top-up tax and its allocation?

The GIR then brings the calculations together by showing:

• The GloBE effective tax rate per jurisdiction.
• The Pillar Two top-up tax after the substance-based carve-out.
• How the top-up tax is split between:
• Qualified Domestic Minimum Top-up Tax (QDMTT), and
• Residual amounts taxed under IIR and UTPR.

The GIR XML becomes the structured summary of your Pillar 2 outcome by jurisdiction for each authority that receives it.

How does GIR XML fit into your Pillar Two process?

The GIR is the reporting output at the end of your Pillar 2 process. XML Authority works at this reporting layer.

A typical set-up:

1. Calculations performed outside XML Authority

• Pillar 2 calculations (ETRs, top-up taxes, substance-based exclusions) are performed in a separate engine, model or system.
• Results are reviewed and approved using your own internal process.

1. Reporting templates prepared in XML Authority

• XML Authority loads the OECD GloBE Information Return schema.
• You create a reporting template in XML Authority by starting from the full schema and adapting it to your use case.
• You can remove non-mandatory fields you do not plan to use and flatten tables to single-row layouts where that suits your data.

1. Excel templates for local and central teams

• XML Authority generates Excel templates from the reporting template.
• These templates mirror the structure of the GIR sections you intend to populate.
• Local or central teams use these Excel files as the front end to enter or paste Pillar 2 results that have already been calculated.

1. Import and conversion to GIR XML

• Completed Excel templates are imported into XML Authority.
• XML Authority converts the Excel data into the GloBE Information Return XML structure defined by the schema and your reporting template.

This separation keeps calculation logic in your chosen engine and uses XML Authority to handle structure, templates and XML generation.

How does XML Authority handle the GIR schema and future updates?

XML Authority is built around XML schemas for regulatory reporting and supports the entire OECD GloBE Information Return schema.

• The current OECD GIR schema is included as standard in XML Authority.
• When new GIR schema versions are released, they can be loaded into XML Authority via a software update or by importing the new schema (or an XML Authority document that includes it).
• Existing reporting templates can be applied to the new schema so that, where possible, your adapted structure is carried across to the updated version.

When a new schema version is adopted, you can:

• Import existing GIR XML into the new schema in XML Authority.
• Apply your reporting template structure to the updated schema.
• Generate new Excel templates for the updated schema so teams can move onto the new layout without designing sheets from scratch.

If tax authorities publish extensions to the GloBE Information Return schema, XML Authority can work with those extended schemas in the same way once they are available. This gives you a single tool for core OECD GIR and any schema-based extensions.

How does XML Authority work with Excel for Pillar 2 data?

Excel acts as the main front end for Pillar 2 data in XML Authority.

• XML Authority generates Excel templates directly from the GIR schema or from your reporting template.
• These templates reflect the structure and fields that will appear in the GIR XML.
• Local entities or central teams populate the Excel templates with Pillar 2 data that has been calculated elsewhere.
• The completed templates are imported back into XML Authority, which maps the data into the GIR XML structure.

For the same schema version, you can reuse the Excel templates in each reporting cycle. You decide how far to automate this step, whether by linking systems to the generated templates or by copying and pasting into them.

This approach lets teams work in a familiar environment while keeping the XML generation controlled and consistent.

How does XML Authority validate GIR XML?

XML Authority validates the GloBE Information Return in two ways.

1. Schema-based technical validation

• XML Authority validates against the loaded GIR XML schema.
• It checks that required fields are present, values are of the expected type, data sits in the correct part of the structure and elements appear the allowed number of times.
• Validation is available in real time as you work and again as a final check before you generate the GIR XML file.

1. Optional business validation based on local rules

• Some tax authorities publish additional validation rules for GIR filings.
• On request, Authority Software can configure optional business validation in XML Authority to reflect jurisdiction-specific validation rules imposed by local tax authorities.
• These business checks are programmed into XML Authority alongside the schema checks and can be maintained as local rules are updated.

Keeping schema validation and local business validation together helps reduce the risk of rejections or follow-up queries due to avoidable errors.

How does XML Authority generate GIR XML for filing?

Once the data has been imported and validated:

• XML Authority generates a GloBE Information Return XML file that conforms to the loaded OECD GIR schema and any applicable extension schema.
• The XML file can then be submitted to the relevant tax authority using the authority’s filing channel.

XML Authority’s role is to produce a technically correct GIR XML file. Tasks such as approvals, sign-off and submission are handled by your own processes and systems.

How can XML Authority help you run a controlled Pillar 2 XML process?

For groups in scope of BEPS Pillar 2, GIR XML filing is expected to recur each reporting cycle. XML Authority supports a controlled approach by:

• Providing full coverage of the OECD GloBE Information Return schema in a dedicated XML tool.
• Allowing you to create reporting templates that reflect how your group actually uses the schema.
• Using Excel as a structured, generated front end for data entry and review.
• Validating GIR XML against the official schema and, where configured, against jurisdiction-specific validation rules.

Your Pillar 2 calculations stay in your chosen engine or model. XML Authority provides the conversion and validation layer that turns those results into compliant GloBE Information Return XML files.

How can you see XML Authority on a BEPS Pillar 2 example?

If you would like to see how XML Authority handles the GloBE Information Return XML in practice, you can request a short walkthrough, followed by a trial. This typically includes:

• Reviewing the OECD GIR schema in XML Authority.
• Creating or reviewing a reporting template tailored to your use case.
• Generating Excel templates and testing how Pillar 2 data is populated.
• Importing completed templates and running validation checks.

By the end of the trial, you can have a validated example dataset and a clear path to reporting your GIR in XML format.