Kickstart BEPS Pillar Two reporting
with CCH® Tagetik Global Minimum Tax

Time is running out for multinational corporations to cope with the OECD’s BEPS Pillar 2 model rules. This directive strikes at the center of the financial close and consolidation process. Finance and tax departments should assess material impacts and address data collection needs now in order to meet reporting requirements on time. 

CCH Tagetik Global Minimum Tax eases the transition with an end-to-end BEPS Pillar Two process

CCH Tagetik Global Minimum Tax is a pre-built expert solution that streamlines BEPS Pillar 2 data collection, calculations, reporting, CbCR, planning and performance management according to OECD guidance. With a workflow purpose-built for finance-tax alignment, it harmonizes the new tax requirements with both local financial close and group consolidation processes.

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CCH Tagetik Global Minimum Tax software is awarded by major Groups:

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3 ways CCH Tagetik Global Minimum Tax lets you focus on your business

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Mastering BEPS Pillar Two tax for Global Minimum Tax reporting with Giesecke+Devrient
Mastering BEPS Pillar Two for global minimum tax reporting with Giesecke+Devrient
Learn how Giesecke+Devrient prepared for BEPS Pillar 2 reporting with CCH Tagetik Global Minimum Tax.
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Free teams from the burden of reporting requirements

Pillar 2 obligations will strain tax teams that rely on isolated tax systems. Our top-down approach to BEPS Pillar 2 connects tax to consolidation and facilitates tax reporting enterprise-wide.

  • Automatically collect, aggregate, and store data
  • Easily map Pillar 2 calculation objects
  • Align tax - finance teams and accelerate financial close
  • Automatically calculate top-up tax
  • Allocate tax amounts to impacted entities
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Use tax insights to guide business strategy

Adhering to BEPS Pillar 2 means more than a tax system upgrade. It involves modifying internal processes to accurately reflect your tax position in financial statements. CCH Tagetik equips you with the planning intelligence to simulate tax impacts — and adjust plans accordingly.

  • Report CbCR & Pillar 2 data
  • Enhance collaboration with back & forth posting
  • Be audit ready with a log of past versions and processes
  • Configure workflows, responsibilities, and deadlines
  • Test cash, ETR, and SH scenarios with simulations
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CCH® Tagetik Global Minimum Tax & BEPS Pillar Two Resources

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About Global Minimum Taxation and BEPS Pillar Two

  • BEPS Pillar Two: What it is and how it works

    BEPS Pillar Two is the OECD's global minimum tax directive. Its goal is to stop large multinational entities (MNEs) from committing tax erosion and profit shifting. Under BEPS Pillar Two, MNEs must pay a minimum effective tax rate of 15% in every country they operate — if that country has agreed to BEPS Pillar Two. A top-up tax must be paid if an MNE (the parent or group company) has an effective tax rate below the minimum in a jurisdiction.

    Relief is available from some BEPS Pillar Two obligations via safe harbors. For example:

    1. Companies can apply for the Transitional Country-by-Country Reporting (CbCR) Safe Harbor, which temporarily excludes MNEs operating in lower-risk jurisdictions from the top-up tax.
    2. Companies can apply for a Simplified Calculations Permanent Safe Harbor, which permanently allows an MNE to reduce the number of complex calculations required or perform simplified calculations instead.
  • The Scope of BEPS Pillar Two

    MNEs are organizations with consolidated group revenue over 750M EUR / 868M USD. BEPS Pillar Two will impact approximately 8,000 MNEs. The OECD expects a global tax collection of over $220 billion USD.
  • BEPS Pillar Two effective date

    BEPS Pillar Two can start as early as January 1st, 2024, for some jurisdictions.
  • A step-by-step of the BEPS Pillar Two reporting process

    1. Determine the scope of BEPS Pillar Two: Which group entities will require the Pillar Two top-up tax? This could include consolidated companies of the corporate group, materially relevant unconsolidated entities, and permanent establishments. In-scope entities, like joint ventures, will also have to determine group entities that can be excluded from the top-up tax calculation if they meet "excluded entities" status. Determining the scope of BEPS Pillar Two will require tax and finance consolidation teams to work together to determine qualifying entities.
    2. GloBE income calculation: Calculating income based on your IFRS/US GAAP accounting standard might seem straightforward. However, income calculations for constituent entities under BEPS Pillar Two are far more complex because constituent entities might not apply the same accounting rules.
    3. Calculating covered taxes: Taxes owed on individual financial statements must be adjusted for Pillar Two, which will affect deferred taxes. Again, this makes for a messy calculation process.
    4. Calculating Effective Tax Rate (ETR) and Top-up Tax: Entities that calculate a tax rate below 15% must pay a top-up tax to get them to 15%. This can be avoided if the group has certain investments like tangible fixed assets and employees or if they qualify for a safe harbor.
    5. Tax liability under the Income Inclusion Rule: Tax liabilities can arise at the parent, holding, or low-taxed company levels. If you can't avoid a top-up tax, the question becomes who should pay.
  • The implications of BEPS Pillar Two for impacted corporations

    Eight thousand MNEs worldwide will be subject to BEPS Pillar Two. These companies will have to:

    • Determine the constituent entities in the group covered by Pillar Two. Is the entity an ultimate parent entity (UPE), partially-owned parent entity (PoPE), intermediated parent entity (IPE), minority-owned parent entity, permanent establishment, transparent company, or joint venture.
    • Collect and manage 250 new data sets per jurisdiction
    • Embed the new ETR & UTPR calculations in the financial consolidation process between legal and constituent entities
    • Detemine GloBE income via the consolidated accounting standards and adjusted by Pillar Two
    • Determine the covered taxes of each constituent entity
    • Calculate the effective tax rate (ETR) per jurisdiction by putting the adjusted covered taxes of all constituent entities next to the qualifying income for each jurisdiction.
    • Determine eligibility for temporary and permanent safe harbors
    • Compare the jurisdiction's ETR with the 15% minimum tax rate and calculate any top-up tax to get to 15%.
    • File a "top-up tax information" return for each company and permanent establishment
    • Determine which level of entity is responsible for remitting the top-up tax
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