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March 29, 2023

Five steps tax accounting teams can take to prepare for BEPS 2.0

Pillar Two is both vast in its reach and complexity, with rules that define a new tax base and a nuanced formula to calculate minimum “top-up” tax on a jurisdictional basis. Tax department budgets and capacity are already under significant pressure, and companies subject to Pillar Two will see a significant increase in their reporting and compliance liabilities. These businesses will need to evolve data sourcing, systems, processes and controls to manage and account for the new minimum tax. This article discusses five steps that tax accounting teams need to consider while preparing for BEPS 2.0.