Navigating Pillar 2: Tax Function Implications in the Middle East
As global tax regulation evolve, businesses must navigate new compliance requirements, including the GLoBE Information Return (GIR) and local filings. The article examines the boarder implications on tax governance, operational structures, and technology adoption, highlighting key considerations for tax leaders in adapting to these changes.
The evolving global tax landscape is presenting new challenges for multinational businesses, with the OECD’s Pillar 2 framework introducing a minimum tax requirement across jurisdictions.
For companies operating in the Middle East, this framework brings heightened compliance obligations, increased tax risks, and the need for strategic realignment. Tax functions must adapt by reassessing governance structures, enhancing internal processes, and leveraging technology to ensure compliance while optimizing tax positions.
This article explores the key impacts of Pillar 2 on tax functions, highlighting critical areas for CFOs and tax leaders to consider as they navigate this complex regulatory shift.
Key Topics Covered:
Compliance Challenges: Increased reporting obligations, including GLoBE Information Return (GIR) and local filings.
Strategic Tax Function Evolution: The shift in tax functions’ role in investment decisions, supply chains, and operational structures.
Tax Governance & Risk Management: Strengthening internal controls to mitigate tax risks and ensure accurate compliance.
Technology & Automation: Leveraging digital solutions to streamline Pillar 2 compliance and enhance tax processes.
People & Expertise: Upskilling tax teams and redefining roles to manage the complexities of Pillar 2 regulations effectively.
By addressing these areas, businesses can proactively adapt to the new tax landscape and maintain strategic agility in a rapidly evolving regulatory environment.
