Starting in 2024, companies must be ready for Pillar Two, the new global minimum tax rules. Pillar Two brings unprecedented new data requirements and extensive calculations that pose new challenges for tax teams. This Pillar Two solution for OneStream helps with the entire end-to-end process. The solution is available separately or as part of our OneStream tax suite. In this video, we show you some of the features.
What is Pillar Two?
Pillar Two seeks to end the race to the bottom on tax rates between countries. The rules target a 15% minimum global corporate tax rate for large multinationals. Pillar Two will have a significant impact on compliance requirements and existing processes.
The new rules require companies to calculate whether additional taxes are due. To do this, tax departments must calculate their income and taxes for Pillar Two. These differ from regular GAAP, statutory and tax definitions. More than 250 required data points have been identified to make these calculations. The calculations are similar to making tax provisions and require advanced knowledge of tax accounting.
With an expected effective date of Dec. 31, 2023, companies must be ready to make the calculations. This ambitious schedule requires tax departments to act quickly, adapt software systems and begin identifying and collecting the necessary data within the organization.
What is OneStream?
OneStream is a cloud-based corporate performance management (CPM) solution that helps organizations streamline their financial processes and improve business performance. It provides a suite of tools that allow users to consolidate financial data from various sources, create financial reports and perform budgeting, planning and forecasting.
OneStream's unified platform provides users with a comprehensive view of their financial data so they can make informed decisions and take timely action. Powerful reporting and analysis capabilities allow users to dive deeper into their data and gain insights that can improve business performance.
OneStream's unified platform provides users with a comprehensive view of their financial data
In addition to its core financial functions, OneStream also offers solutions for financial close management, tax provisions and account reconciliations. Its flexible architecture allows users to customize the platform to meet their unique business needs, and it integrates seamlessly with other business systems, such as ERP and CRM solutions.
Overall, OneStream is an innovative CPM solution that can help organizations improve their financial processes, increase visibility into business performance and drive better decision-making.
Our Pillar Two solution
In collaboration with the tax experts at Taxvibes, Finext has developed a unique solution for the challenges presented by Pillar Two. The solution is available separately or as part of our OneStream tax suite. OneStream's platform also enables further integration with other financial processes to provide a single solution for finance and tax.
The solution has the following features:
- Integration within the Taxvibes OneStream tax suite, allowing seamless integration with finance and all other tax processes
- Easy data collection via built-in mapping tables, customizable and owned by the fiscal team
- Intuitive user-specific dashboards and workflows
- Status trackers
- Extensive data integration capabilities
- User-friendly entity dashboards
- GloBE Income calculations
- Calculations adjusted covered loads
- Effective tax rate and additional tax calculations
- Safe harbor rules
- Functionalities for exporting data
- Reporting capabilities
- Integration of reporting by country
- Two-way allocation engine for additional tax between entities and jurisdictions
- User guidance with easy-to-understand, customizable tooltips
- Including OECD definitions
- Training materials for users and administrators
- Suitable for GloBE Information Return (GIR).
See the solution in action?
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