The new Pillar 2 global minimum tax regime
The reality of global minimum tax (GMT, GloBE, or OECD BEPS 2.0 Pillar 2), which aims to make it harder for big companies — those with €750 million in revenues in the Consolidated Financial Statements of the Ultimate Parent Entity — to avoid tax by shifting profits to lower tax jurisdictions, is here and coming into effect on January 1, 2024.
For tax teams in multinational corporations, the impact is significant. The time clock for implementation is already running down. The regime is disruptive. It accelerates the urgency with which tax and finance departments must drive digital transformation, automating both functions to allow more time to develop scenarios, benchmarks, and predictive analytics.
Without a doubt, the tax burden is increasing, necessitating more calculations to be carried out and imposing greater compliance and reporting requirements. However, that’s just one aspect of the new regime. Even more challenging are the data collection requirements. The GMT rules will force companies to collect, analyze, and report on more data than ever before and will further increase the expectations on the tax team.
Download this paper to get ahead of global minimum tax and compliance and minimize business disruption. Learn how to:
- Explore the key requirements of the GMT regime
- Test your organization’s readiness to meet the compliance challenges
- Streamline data using minimal resources
- Enhance current workflows to meet reporting requirements imposed by the GMT regime