In a significant development affecting the global corporate landscape, the Organisation for Economic Co-operation and Development's (OECD) Base Erosion and Profit Shifting (BEPS) initiative, specifically its Pillar Two guidelines, is poised to bring substantial changes to the tax obligations of multinational companies. This initiative, impacting around 140 countries, specifically targets corporations with annual revenues exceeding €750 million.
Recent research has revealed a concerning lack of preparedness among these multinational giants, with over 77% reportedly not ready to meet the data requirements set by the new regulation. With 40% of these corporations anticipating that the new rules will bring significant reshaping of their tax obligations and organisational processes, delays in getting started can actually be detrimental in achieving organisational change that can extend beyond just the tax department.
Amid this landscape, only a mere 15% of the affected multinationals express confidence in their technological readiness to comply with the new rules. This gap in readiness, coupled with the inherent resource limitations, adds an extra layer of complexity to meet the impending reporting obligations.
However, this regulatory shift isn't solely a challenge; it also presents opportunities for operational optimisation. In this context, Wolters Kluwer, a veteran in the field of tax and business technology solutions with over 180 years of experience, is stepping up to support these corporations. Specialising in the intricacies of tax impact, the company combines its deep knowledge with its expertise in workflow and software development to offer tailored solutions for large multinationals.
A key tool in their arsenal is CCH Integrator, a robust tax compliance platform that promises to streamline the entire spectrum of tax processes – from provision and country-by-country reporting to final filing – under one umbrella. The platform focuses on efficient capture, calculation, and communication of tax data, ensuring precision in compliance.
Notably, Wolters Kluwer claims that the integration of core tax processes via CCH Integrator can result in efficiency gains of 30-40%. With the addition of BEPS Pillar Two compliance, they project even greater improvements in efficiency.
Designed to be highly adaptable and user-friendly, CCH Integrator offers a comprehensive solution that aligns with OECD guidelines while maintaining flexibility for local adaptations. Its advanced, low-code, no-code platform ensures that tax teams can effectively manage their data and reporting obligations.
Wolters Kluwer's commitment to providing global technical support underscores its dedication to assisting corporations in navigating these complex tax changes. Their teams across the globe have developed a solution that not only addresses the intricate challenges of the new tax regulations but also scales effectively across various jurisdictions.
As the deadline for compliance with the OECD's BEPS initiative draws near, Wolters Kluwer's CCH Integrator stands out as a beacon for multinationals seeking to navigate the turbulent waters of tax reform.