The OECD’s Pillar Two requirements represent the biggest change to global corporate income tax in decades. The new rules effectively create a global minimum tax rate of 15 percent and significantly impact the financial processes and operating structures of large multinational organizations. Thanks to Deloitte’s Tax Technology Consulting’s existing Oracle implementation service team, companies can enhance tax reporting with the Pillar Two solution in Oracle Cloud EPM. This complementary pairing can help organizations collaborate in tax, finance and other operational areas; collect and manage data from a variety of source systems, including general ledger, subledgers, and more; and better model the future impacts of new requirements.
“International tax compliance is incredibly complex. To efficiently address the new Pillar Two requirements, organizations need to quickly connect and analyze increasing amounts of data,” said René van Gassen, director of Deloitte Netherlands Tax Technology Consulting (TTC). and can enable Oracle to effectively leverage its technology to unify finance processes and manage compliance efficiently.”
New capabilities in Oracle Cloud EPM can help finance teams streamline complex tax processes. These capabilities include:
Pillar Two data collection and management: Help tax teams automatically collect data from a variety of business systems, including finance, HR, and sales systems, and format the data to comply with Pillar Two data model requirements. This provides a strong audit trail and allows teams to spend less time collecting and harmonizing data.
Second Pillar Task Manager: Facilitates coordination and collaboration throughout the entire financial closing process, minimizing delays in closing. The easy-to-deploy Task Manager allows users to assign and track tasks from a central dashboard and provides a simple, step-by-step process to guide them through Second Pillar responsibilities. This helps teams ensure the Second Pillar process goes as smoothly as possible.
Pillar Two tax forecasting and modeling: Provides teams with the ability to forecast and model tax scenarios in Oracle Cloud EPM. This helps predict the future impacts of new OECD requirements so organizations can be better prepared for the new global minimum tax.
“As multinational organizations plan for the impact of the new Pillar Two global minimum tax regulations, technology will play a key role in ensuring accurate and efficient compliance,” said Hari Sankar, Oracle Group Vice President of Product Management. “Pillar Two in Oracle Cloud EPM has built-in best practices and advanced modeling capabilities that enable customers to centralize controls, improve tax visibility, and tailor tax strategies.”
“To prepare for Pillar Two reporting requirements, companies need a solution that connects and analyzes data across the organization,” said Allison Matthews, Tax Technology Consulting (TTC) Partner at Deloitte Tax LLP. “The combination of Deloitte’s implementation services and Oracle’s enterprise performance management technology is critical to preparing for these global changes.”
Oracle Cloud EPM, part of Oracle Fusion Cloud Enterprise Resource Planning (ERP), offers a comprehensive set of enterprise performance management capabilities to align financial and operational planning, close the books faster, and manage enterprise master data.