Be prepared for the new OECD / EU GloBE regulations with our Pillar Two Software Module.
Pillar 2 Software
- Automated calculations of GloBE income/losses, covered taxes and GloBE Effective Tax Rate
- Standardized group GloBE Information Return
- GloBE Top-up Tax at the constituent entity, jurisdictional, and consolidation level
- Seamless integration with existing tax environment & ERP systems
Pillar 2 Software
The core principles of the international tax landscape are set to change in 2023. Pillar Two sets out global minimum tax rules designed to ensure that large multinational businesses pay a minimum effective tax rate of 15% on profits in all countries. TaxModel is building a standardized affordable, cloud-based Pillar Two software solution to assist MNE Groups and intermediaries in assisting their MNE Clients in managing their Pillar Two challenges.
Pillar 2 requirements
- New tax calculation and reporting obligations
- Identify, gather and process required tax data
- Digitally and securely store MNE global tax calculation data
- Traceable and trackable tax data for future year calculations
- Documented trails for potential tax authority audits
- Increased collaboration between Tax and Accounting teams
Pillar Two requires a solid tax accounting process, and it could already impact the tax reporting for 2023. Now is the time to get your updated processes in place.
Benefit from our Pillar Two software module and be prepared for the new OECD / EU GloBE regulations!
Pillar Two Module Roadmap
TaxModel aims to deliver a go-to-market Pillar Two Module 1.0 in 2023, incorporating the administrative guidance by the OECD and the EU in Q1 2023.
Development of our Pillar Two module will incorporate the introduction of any additional GloBE provisions, such as, the GloBE backstop mechanism, which will provide automated calculations of the UTPR, including the allocation and adjustment. We will also incorporate must and should-have improvements collected from our Pillar Two user community.
Pillar Two 1.0 aims to assist MNE Groups with the first layer of Pillar Two compliance requirements:
- Data collection 1.0 – ensure a smooth connection between your existing tax provisioning environment and/or ERP systems to retrieve and import files
- Data processing 1.0 – automated calculations of GloBE income/losses, covered taxes, GloBE Effective Tax Rate, GloBE Top-up Tax at the constituent entity, jurisdictional, and consolidation level, including safe harbor calculations
Pillar Two 2.0 development will start in January 2024 and aims to assist MNE Groups with the second layer of Pillar Two compliance requirements:
- Data processing 2.0 – the extension of data processing 1.0 with the identification of the parent entities to which the Top-up Tax (ToT) is attributable and the offset of ToT in case several parent entities are liable for the ToT
- Data reporting 2.0 – a standardized GloBE Information Return that provides information on the tax calculations made by the MNE Group and contains the information a tax administrator needs to evaluate the correctness of a Constituent Entity’s GloBE tax liability and to perform an appropriate risk assessment, including XML compatible reports
Tax provisioning as basis for Pillar Two
For MNE Groups that are also worried about not being in control of their tax provisioning process as the basis for Pillar Two, we also offer TaxProof, our TaxSuite module for tax provisioning, which has been updated for collecting the new Pillar Two data points and calculating the Pillar Two impact for (IFRS or other central GAAP) reporting purposes. To know more about TaxProof, please click here.
Pillar 2 software module pricing
- Unlimited number of constituent entities
- Unlimited number of users
- € 30,000* per annum
*Pricing may change based on developments in OECD regulations for Pillar 2
Unsure where to start or want to learn more about the Pillar 2 offers? Book a meeting with one of our tax technology experts.
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