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 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.
Sign up for our Pillar Two Software