To help multinationals navigate and comply with OECD’s Pillar Two regulations, Wolters Kluwer recently announced the launch of a new CCH Tagetik expert solution.
As part of a continuous effort to reform the international tax system, and in adherence to OECD Pillar Two tax requirements, more than 140 countries have agreed to implement a global minimum corporate tax rate of 15% in 2024, for certain MNCs, the firm observed.
Navigating new requirements in short timeframe
To meet the new obligations, MNCs need to quickly gain visibility into, connect, and analyse massive amounts of enterprise-wide data, Wolters Kluwer pointed out.
In addition, MNCs must process complex tax calculations to understand the impact Pillar Two will have on corporate profitability and operations, the firm added.
But the use of disparate, disconnected technology to manage tax and financial data by many large companies today makes it difficult to efficiently address the new tax requirements, the firm noted.
To address this challenge, Wolters Kluwer said it’s extending its corporate tax expertise to its CCH Tagetik Corporate Performance Management (CPM) platform.
Top-down approach to support new needs
The new CCH Tagetik Global Minimum Tax expert solution, according to the company, will help MNCs rapidly meet new requirements of Pillar Two regulations by collecting, aggregating, harmonising, and securely storing the new data sets required to perform complex calculations across local, group, finance, and tax consolidation.
The solution takes a top-down approach by connecting tax to consolidation, centralising enterprise data, and automating processes and calculations to facilitate compliance process, the firm said.
The new tax solution will enable users to map, efficiently manage, and align data in a way that supports Pillar Two requirements, the firm noted, adding that it can also help users manage the tax process end-to-end to reduce the burden that tax and finance teams face when reporting in accordance with the Pillar Two framework, Wolters Kluwer added.
CFOs’ needs to gain visibility into enterprise data
Like any new reporting requirements, Pillar Two will have impact on business models and operations.
With the new solution, users can understand the new requirements’ current and future impact better, said Wolters Kluwer.
For instance, users can perform what-if analyses of how various business decisions will be impacted by the new tax model, the firm added.
“CFOs need to gain visibility into, connect and analyse enterprise-wide data in a way that helps them better manage complex global requirements related to the Pillar Two regulations,” said Ralf Gärtner, Senior Vice President and General Manager of Corporate Performance Solutions, Wolters Kluwer. “With information made available by the solution, CFOs can create more informed three-to-five-year strategic plans that guide and optimise their corporate tax strategy to drive profitable growth.”
