Navigating Global Tax Reforms - A Comprehensive Pillar Two Checklist and Readiness Guide

Is your midsize multinational enterprise (MNE) ready to meet the new, complex reporting and compliance requirements required by Pillar Two? The new global minimum tax rules became effective Jan.1, 2024, so it’s essential to act now to avoid costly penalties.

Pillar Two, commonly referred to as the “global minimum tax” or “GloBE,” establishes a minimum effective tax rate to ensure MNEs with revenues exceeding €750 million (∼$800 million) pay an effective tax rate (ETR) of 15%. If your MNE is paying below 15% tax on your profits, you may be required to pay a top-up tax, though enterprises paying above the minimum threshold could potentially achieve realize tax savings.

We understand the time-intensive requirements can appear daunting. Successful implementation is all about the data — you’ll need to aggregate data from various data points to ensure accurate tax calculations.

Simplify Pillar Two Implementation, Compliance and Calculations

Our new OECD Pillar Two Implementation Readiness Checklist & Guide offers you a seamless 4- step process to ease Pillar Two implementation, compliance and calculations, including:

  • Step 1: Pillar Two Impact and Readiness
  • Step 2: Pillar Two Compliance Requirements
  • Step 3: Calculation of the Pillar Two Tax
  • Step 4: Finding a Qualified Provider for Accurate Calculations

Additionally, we provide solutions to overcome common roadblocks to Pillar Two execution, as well as guidance on identifying the right provider for your Pillar Two implementation. You’ll also receive insights on a customized calculation tool and learn how you can utilize technology to streamline your Pillar Two process today and well into the future.

Download our New Guide to Learn More

Remember, while Pillar Two implementation is challenging, the new requirements offer an opportunity to realign your organization’s tax and transfer pricing strategies. Connect with a member of our international tax and transfer pricing team with any questions you may have.