Simplified jurisdictional reporting framework
Entities in Norway may use a simplified reporting framework at jurisdictional level where the conditions are met. The procedure for applying the simplified reporting framework at jurisdictional level is set out in the OECD guidance on completing the GloBE Information Return.
When you can apply the simplified jurisdictional reporting framework
The simplified jurisdictional reporting framework applies to fiscal years that begin before 31 December 2028 and end before 30 June 2030. The transitional period is intended to give groups time to develop accounting systems and processes that enable the collection and reporting of information at entity level.
The simplified jurisdictional reporting framework may only be used for countries or subgroups where no top-up tax arises, or where top-up tax arises but does not need to be allocated at entity level.
Simplified jurisdictional reporting framework for calculating qualified domestic top-up tax
The election to use the simplified jurisdictional reporting framework may also be used when calculating domestic top-up tax. Domestic top-up tax in Norway must, however, be allocated to the individual entity, and the election is therefore only available where no domestic top-up tax arises that must be allocated between entities in Norway.
Requirements for entities when using the simplified jurisdictional reporting framework
The rule allowing the use of the simplified jurisdictional reporting framework only simplifies the reporting obligation . Where the Norwegian Global Minimum Tax Act requires calculations to be carried out at entity level, the calculations must still be performed at entity level, even if the information is reported at an aggregated level in the GloBE Information Return.
Entities that choose to use the simplified jurisdictional reporting framework are expected to have accounting systems that support a jurisdictionalapproach and ensure that the global minimum tax calculation is carried out accurately and reliably. This includes arrangements that ensure entities are located to the correct country and that the rules are applied at entity level where relevant for calculating the effective tax rate and top-up tax.
It is expected that the reporting entity has processes that ensure reliable allocation of accounting information to the correct country and accurate aggregation in the consolidated financial statements. In addition, the entity is expected to have processes to identify all relevant adjustments in each country at a detailed level, including the ability to link individual items to the correct entity where this is relevant for the accuracy of the adjustment.
It is expected that the reporting entity can explain the process used to ensure correct application of the rules if requested by the Norwegian Tax Administration.
How to submit using the simplified jurisdictional reporting framework
Under the simplified jurisdictional reporting framework , the group is not required to provide information on all adjustments in FANIL, current tax expense and deferred tax expence on an entity level (subject to certain specific exceptions). The entity-specific adjustments that are required may, when using the simplified jurisdictional reporting framework election, be reported as net amounts.
See the GloBE Information Return guidance, page 74, and the XML Schema User Guide, page 79