With the BEPS 2.0 project, the OECD is pursuing a goal of developing an internationally coordinated taxation concept that meets the changing requirements of a globalized and digitalized economy. The Global Anti-Base Erosion (GloBE) Rules play a key role in this transformation. They are designed to ensure that large multinational companies pay a minimum level of tax on the income they generate. Pillar Two of the GloBE Rules provides additional taxation of profits earned in a country if the effective tax rate determined at the country level is below the minimum rate. To support companies in implementing and complying with these rules in the future, WTS relies on three different technical solutions for an integrated Tax Reporting and Pillar Two process. These will be briefly discussed below:
AMANA
Our cooperation partner, AMANA Consulting GmbH, is the market leader in Germany for end-to-end solutions in the area of income taxes with the GlobalTaxCenter Suite. More than 100 customers use their products for tax accounting and reporting, tax return, country-by-country reporting (CbCR) and much more. Together with AMANA, WTS is developing an IT solution for data aggregation, calculation and declaration for the implementation of the requirements from Pillar Two. The solution is based on the familiar functions and interfaces of tax reporting.
This is a great advantage, since the program interface is familiar to many end users. Already existing master and reporting data as well as interfaces can be used efficiently and double entries can then be avoided. In addition, this solution also offers integration into the existing processes of clients, which means that WTS can support them with comprehensive and targeted consulting services to meet the requirements of Pillar Two. AMANA's flexible interface solution also allows us to connect business intelligence software to set highlights through KPIs and dashboards.
SAP Profitability and Performance Management (PaPM) und SAP Analytics Cloud (SAC)
We offer two further solutions that have a more extensive range of functions in SAP. WTS offers calculation solutions with both SAP Profitability and Performance Management (PaPM) and SAP Analytics Cloud (SAC). SAP PaPM combines the functionalities of a data aggregator, a calculation engine, simulation software and an analysis tool, while SAC stands out above all for its comprehensive visualization, planning and analysis options. Both solutions are capable of integrating various source systems (MS Excel, SAP and non-SAP ERP systems, consolidation and planning data, etc.). Furthermore, they offer the possibility to centrally manage and edit general and tax-centric organizational and master data (group structure, tax rates, group taxation, etc.) as well as transaction data. Both solutions also offer the option of calculating scenarios while using integrated dashboards and analytical components, with SAC standing out in particular in the latter case. PaPM, on the other hand, is distinguished by its functionality as a high-performing computing engine. This allows large volumes of data to be processed flexibly in real time and without replication (e.g., in the form of calculations, allocations, checks, etc.).
With SAC and PaPM, all Pillar Two requirements can be implemented:
- Process and data management (ERP, consolidation and planning data, CbCR data, etc.).
- Calculation operations (from income tax that is paid according to income adjusted by GloBE rules, effective tax rate and additional tax)
- Integration with tax reporting
- Planning and scenario calculations and analyses (e.g. ETR analyses or what-if carve out scenarios)
There are many requirements that result from Pillar Two. By combining technical expertise, process expertise and digital solutions, we are able to support the implementation of customized solutions to meet these challenges.
