1 minute read 14 Jun 2023
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Multinationals Face Complex Data Challenges From Global Tax Deal

Kevin Flynn
By Kevin Flynn

EY Americas Vice Chair – Tax

Experienced problem solver. Builder of diverse teams. Avid San Francisco sports fan. Husband and father of four.

1 minute read 14 Jun 2023
Related topics Tax
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Around the world, jurisdictions are already making significant headway toward implementing BEPS 2.0 Pillar Two. Multinationals will need to analyze their existing systems and consider whether to invest in new technology and improved processes.

Multinational enterprises are facing new and complex tax rules stemming from the Organisation for Economic Co-operation and Development (OECD) and G-20 countries’ Base Erosion and Profit Shifting (BEPS) 2.0 project—particularly the project’s Pillar Two 15% global minimum tax, which is set to apply to multinational groups with global revenue of more than €750 million ($829 million).

Enforcing these rules will require unprecedented global cooperation between tax authorities, and implementation approaches likely will vary among jurisdictions adopting the rules, making compliance a challenge and creating the risk of controversy. Multinationals also will need to manage a substantial increase in data collection and tracking required to comply with these rules.

Given the rules’ scope and complexity—and implementation as early as 2024 in many jurisdictions—multinationals need to evaluate and update their existing data strategies now.

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This article was originally published by Bloomberg Tax. An excerpt is reprinted here with permission.

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How EY can help

Navigating BEPS 2.0: Pillar Two

The implementation of the base erosion and profit shifting framework developed by the Organisation for Economic Co-operation and Development requires organizations to re-evaluate their business. We can help you develop the sustainable tax framework the new environment demands.

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Summary

Businesses should position themselves now to comply with the second phase of the global base erosion and profit shifting project, particularly its 15% global minimum tax.

About this article

Kevin Flynn
By Kevin Flynn

EY Americas Vice Chair – Tax

Experienced problem solver. Builder of diverse teams. Avid San Francisco sports fan. Husband and father of four.

Related topics Tax
Upvote