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February 15, 2023

The role of business applications in responding to global minimum tax (Pillar Two) requirements

BEPS 2.0 (Base Erosion and Profit Shifting) is considered the New World Tax System and will dramatically change the international tax landscape. The objective is to ensure a minimum level of effective corporate taxation of large multinational groups and for the EU, of large-scale purely domestic groups operating in the Single Market. The Pillar Two rules are complex and may take effect as early as 2024. For non-compliant businesses, the risks are two-fold: legal and reputational risk, and risk of sanctions for non-compliance (including but not limited to financial). The focus of this paper is on the Pillar Two requirements and how business applications can act as a key readiness enabler.

A white paper presented by EY and SAP is available here.