Finance Monthly - December 2022

31 Finance Monthly. Bank i ng & F i nanc i a l Se r v i ce s In two short years’ time, multinationals with a consolidated revenue of over €750 million must establish tax strategies for meeting Pillar 2 requirements, ensuring the world’s largest companies pay a global minimum tax of 15%, no matter the location of their operations. Inevitably, one of the key challenges ahead lies in how finance functions comply with providing 150+ data points, some of which might not be captured in source systems. If this wasn’t enough, the requirements get more complex and verbose when operating internationally. The answer lies in global data integration and collaboration from a single platform. Currently, corporate tax can be a manual, spreadsheet-driven task, conducted every twelve months and then submitted to HMRC or other local regulators. The complexity in the calculations lie in tax specific adjustments, to be made in the computation. In addition, there are different rules for various sectors, such as oil and gas, and finance, as well as exemptions for significant assets and machinery. Needless to say, completing accurate tax returns takes time and effort.

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