The Organization for Economic Co-operation and Development (OECD) Pillar Two model rules require that in-scope multinational enterprises pay a minimum level of tax on income arising in the jurisdictions they operate in. These rules are ambitious in scope and reach, designed to accommodate diverse international tax systems, tax consolidation rules, income allocations, entity classification rules, and business structures. For in-scope groups with multinational activity, they're likely to have a significant impact on tax operations.
Tax reform at this scale changes many aspects of how global businesses are taxed—and in turn, their data requirements, calculation, and reporting demands. In response, qualifying multinationals must work to understand the new rules and model the global financial, operational, and strategic impacts. To comply with Pillar Two data and reporting requirements, businesses must coordinate end-to-end tax, finance, IT, and legal inputs. This includes having access to the right data, at the right level of detail, evaluating existing technology, generating calculations, preparing and training resources, and managing stakeholder expectations.
Deloitte practitioners can help you assess the impact of Pillar Two on your current and future business plans, from targeted technical support to global impact assessment and compliance oversight. We can help you identify and assess the impact of this new and complex legislation in multiple countries.