February 15, 2023
Leveraging financial reporting for BEPS 2.0
BEPS 2.0 is not just a significant development in international taxation, but also a fundamental change in the mechanism by which corporate taxation for international organisations is calculated. BEPS 2.0 has now introduced an allocation of profits by markets (pillar one) and a global minimum tax per jurisdiction (pillar two). In addition, the qualified domestic minimum top-up tax (QDMTT) under pillar two allows jurisdictions to introduce a minimum corporate tax rate and therefore maintain a competitive tax regime. These changes shift the calculation mechanism and the data required.
An article by EY professionals Albert Lee and Carina Ngai is available here.