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Pillar Two is a huge change for CFOs – and they’ll need the support of CIOs
Pillar Two is an overhaul of the global tax system, requiring multinational enterprises (MNEs) with combined revenues over €750m to pay a minimum of 15% tax on profits in each country where they do business if they operate in any of the enacting countries. CIOs and CFOs will likely need to combine forces so they can pair the right strategies and technologies — like the flexible technology that the Workday platform offers and PwC’s innovative business and tech solutions — to help successfully equip their organization for the compliance complexities ahead.
A plan that can prioritize support for the tax and finance teams, coupled with PwC and Workday’s integrated data aggregation, transformation and assessment capabilities, can help CIOs and CFOs efficiently manage financial operations as Pillar Two evolves. Read how in our four-point guide to getting Pillar Two ready:
1. Identify the data requirements and agree on an approach
Understanding the nuances of Pillar Two can help shape how CIOs and CFOs approach their data management and reporting processes. At PwC, we have the Data Input Catalog that can be a good starting point to help MNEs identify and understand Pillar Two data requirements.
2. Develop an end-to-end data strategy
To help streamline Pillar Two compliance and impact forecasting, CIOs, CFOs and tax departments should start by assessing readiness and structuring the right operating model. In many cases where required data is not already present in existing systems, CIOs can work with data owners globally to help identify data gaps and determine the ideal approach for sourcing the necessary information.
3. Accelerate Pillar Two data processes with PwC and Workday
When it comes to Pillar Two data, the sheer diversity of sources and stakeholders can make collecting and synthesizing challenging. The good news is that some of the data can be derived from existing systems like Workday Financial Management or Workday Human Capital Management (HCM).
Our Pillar Two integrated data aggregation, transformation and assessment capabilities for Workday can help provide a connected approach to collect and transform the right data. For example a user may leverage the Workday platform to gather and store the right financial and employee data – helping improve efficiency as companies prepare to calculate Pillar Two liabilities.
4. Calculate Pillar Two now and in the future
As adoption of Pillar Two grows its rules and requirements can continue to evolve as well. The proper tools can help CIOs and CFOs save time and simplify these complex global calculations. Beacon, a PwC Product that features the Pillar Two Engine, is a cloud-based calculation engine that can be configured to support changing and complex Pillar Two rules around the world.
PwC and Workday: Accelerating your Pillar Two data processing
Check out how we can help with gathering and cataloging Pillar Two data points – supporting iterative calculations to increase reporting efficiency.
Successful implementation of Pillar Two will likely require close collaboration between CIOs, CFOs and tax departments. With our four-point guide as a roadmap – they can focus on prioritizing data integrity, systematic reporting, and process automation with PwC and Workday. Together, CIOs and CFOs can better equip their organizations to navigate and adapt to the evolving landscape of Pillar Two.
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