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SAP PaPM as a tax solution

Automated tax processes in real time with Deloitte and SAP PaPM

Deloitte and SAP PaPM integrate complex tax processes, real‑time calculations and dynamic analytics. Gain transparency, reduce risk and increase the flexibility your tax function needs today.

Digitising your tax processes with SAP PaPM

SAP Profitability and Performance Management (PaPM) is a platform for modelling, simulation and analysis of calculation logic. It lets you combine multiple data sources, run fast in‑memory analyses and apply changes without large system replacements. Organisations gain better transparency, easier scaling and quicker, audit‑ready results. PaPM supports both day‑to‑day tax operations and strategic decision making on a consistent data basis.

With Deloitte and PaPM you can cover Transfer Pricing, Pillar Two calculations, specific VAT (sales tax) reporting and withholding tax – next to the native S/4HANA set up or tax engines used. We build tailored, audit‑ready models that automate complex rules, run scenario simulations and produce reliable outputs for reporting and journal posting, helping your tax function stay compliant and more responsive.

Frequently asked questions (FAQ)

1. What are the key benefits of SAP PaPM for tax teams? 
SAP PaPM is a platform rather than a point solution for a single (tax) use case. SAP PaPM is scalable and provides organisations the flexibility to configure the functionality they need, while benefiting from the sample content provided by SAP and other providers. In addition, SAP PaPM can be maintained by business users without coding experience after user training, which is a standard part of our implementations. Lastly, with SAP PaPM Cloud, you can benefit from SAP's investments and functionality for tax and finance use cases.

2. Can SAP PaPM integrate with non-SAP systems?
Yes, PaPM can integrate with both SAP and non-SAP systems. 

3. For which tax processes has Deloitte accelerators and models available? 
Deloitte provides accelerators for IFRS and US GAAP tax reporting, CIT compliance, transfer pricing (cost allocation, segmented P&L, margin monitoring) and Pillar Two. The content is available for both the on premise and cloud versions of PaPM. 

SAP PaPM: Cloud, On-Premise or Hybrid

The Universal Model links SAP and non‑SAP data sources (SQL, APIs, Excel, IoT) and enables dynamic modelling without redeployment.

Ideal for: organisations with mixed data sources, BEPS Pillar Two requirements and scenario‑based analysis.

Benefits:

  • Flexible data modelling and data mapping
  • AI‑assisted scenario simulations
  • Compliance‑ready with detailed audit trails

SAP PaPM Cloud is more than a hosted instance, it provides automatic updates, global availability and embedded intelligence (Joule) to simulate scenarios such as “what if a 20% CO₂ tax?” in real time.

Ideal for: agile teams, tax reporting and transfer pricing projects, and data‑intensive analysis.

Benefits:

  • Faster implementation and lower TCO
  • Real‑time simulations and predictive analytics
  • Auto‑scaling infrastructure for efficiency
  • Reduced resource use for sustainability gains

For companies with high requirements for data protection, governance, and customisation, the on-premise version offers full control over infrastructure and data flows.

Ideal for: regulated industries, complex IT landscapes, custom processes.

Benefits:

  • Complete data sovereignty & security
  • Extensive system customisation possible
  • Integration into existing SAP HANA landscape
  • Long-term cost control with stable usage

With “Bring Your Own Data” (BYOD) in SAP PaPM Cloud, you use your own SAP HANA Cloud instance—independent of the central PaPM tenant. This means: full control over data management, governance, andperformance, without sacrificing the benefits of the cloud.

Ideal for: Companies with strict compliance requirements, existing HANA
infrastructure, or specific data sovereignty needs.

Benefits:

  • Use of your own SAP HANA Cloud instance
  • Decoupled data management & maximum control
  • Integration into existing security and governance structures
  • Unchanged functionality of PaPM Cloud – just with more freedom

Tackle BEPS Pillar Two complexity with Deloitte and SAP

Global tax rules are changing fast. BEPS Pillar Two creates new challenges for many organisations. Deloitte’s BEPS 2.0 Tax Manager, combined with a starter kit built on SAP PaPM and the SAP Business Technology Platform, provides a ready‑to‑use solution.

This solution covers the full process: data collection, complex GloBE calculations, regulatory reporting and posting results back to your ERP. It delivers automated workflows, flexible reporting and built‑in safe‑harbor rules so you can meet compliance requirements clearly and efficiently.

Working with Deloitte gives you the technology plus deep tax expertise for a smooth implementation and pragmatic planning. Reduce risk, increase efficiency and stay aligned with OECD requirements, relevant for companies operating in Germany, the Netherlands and other jurisdictions.

Watch Deloitte’s Pillar Two solution in our webcast Tax Technology Insights #63

BEPS Pillar Two is more than compliance, it is an opportunity to improve tax processes. In this webcast, see how SAP PaPM can streamline your tax strategy and embed global Pillar Two requirements into your reporting and calculations, with practical guidance for organisations.