Walters Cluea global leader in professional information, software solutions and services, today announced the release of its Q2 BEPS Pillar 2 Readiness Index Report for 2024. This comprehensive global survey measures the readiness of multinational enterprises (MNEs) to comply with the Organisation for Economic Co-operation and Development (OECD)’s Base Erosion Profit Shifting (BEPS) Pillar 2 regulations, which introduce a global minimum effective tax rate of 15% for MNEs with consolidated global profits exceeding €750 million (A$1.245 billion).
Key Results:
- 88% of respondents have started the BEPS Pillar 2 compliance process, up 18% from the previous quarter, and 27% of organizations are in the final stages of implementing their current data and operating models.
- 76% of respondents are concerned about the complexity of data collection for BEPS Phase 2, up from 6% in the previous quarter.
- 93% of respondents cited “adapting to changing laws and regional requirements” as a key challenge for global collaboration.
- 33% of respondents are actively exploring technology solutions to help them meet BEPS Pillar 2 requirements.
A recent survey found that readiness has increased significantly, with 88% of organizations now actively engaged in their BEPS Pillar 2 journey. Additionally, 83% have undertaken a preliminary impact assessment study in line with their efforts to meet compliance requirements. This proactive approach reflects a significant shift in readiness for BEPS Pillar 2 compliance.
Understanding data requirements remains the biggest challenge, with concerns about data collection up 6%. Legislative uncertainty, previously the top concern, has now moved to third place as local regulations become clearer.
While there has been greater clarity on the law in some jurisdictions, the complexity of maintaining compliance across diverse regulatory environments has been highlighted as the primary focus of global collaboration has shifted to “adapting to changing laws and local requirements.”
Confidence in current tax technology and data management systems has declined, with 0% of respondents being very confident in the ability of their current systems to address BEPS Pillar 2 requirements. As a result, 33% are considering technology solutions to help address challenges and capitalize on BEPS Pillar 2 opportunities.
While the introduction of new global tax laws increases complexity and increases compliance and reporting obligations, companies are increasingly aware of the BEPS 2 tax planning opportunities, particularly in improving processes, leveraging data and technology, driving improvements and enhancing risk management.
As the BEPS Pillar 2 date approaches, multinational companies must step up their readiness efforts. Advance planning, strategic investments in technology, and enhanced global collaboration are essential to achieving compliance. The Wolters Kluwer BEPS Pillar 2 Readiness Index report provides key insights to help organizations navigate the complexities of BEPS Pillar 2 and effectively capitalize on its opportunities.
For more information or to access the full report, please contact Wolters Kluwer Website.