Pillar Two Tax Forms

Pillar Two introduces a global tax system that sets a minimum effective tax rate for large multinational companies. It requires them to pay at least 15% income tax in each jurisdiction. While the Global Minimum Tax sets the standard, these documents are used for the actual reporting.

Therefore, the official way to prove GloBE compliance with tax authorities is through tax forms. To put it simply, accurate Pillar Two tax filings are necessary to support an MNE's tax position and comply with the intricate Pillar Two regulations that each jurisdiction enforces.

Large multinational corporations (MNEs) are generally the focus of Pillar Two. However, determining who needs to submit Pillar Two tax forms is crucial.

• Within the scope International Organizations: Large Multinational Enterprise (MNE) groups are the target of the regulations.
• Revenue Limits: The total revenue for at least two of the preceding four accounting periods was at least EUR 750 million (or the local equivalent).

MNEs have particular Pillar Two obligations that call for constant observation and assessment of existing practices and technology. More significantly, because the rules offer so many options, developing a variety of action plans becomes crucial.

Although Pillar Two is implemented differently in each jurisdiction, most Pillar Two tax forms fall into a few common categories. The actual form names, layouts, and formats vary by country, even though the purpose of these filings is the same everywhere. Typical classifications consist of:

• Pillar Two Registration Forms
• Pillar Two Notifications
• Top-up Tax Returns
• GloBE Information Return (GIR)

For tax professionals working across multiple jurisdictions, ensuring Pillar Two compliance presents a significant operational challenge. Among them are:

• Using different government portals
• Recognizing various languages and formats
• Monitoring deadlines in different nations
• Monitoring modifications with new templates or updates

MNEs need to abandon fragmented processes in order to effectively manage Pillar Two forms. Many are switching to centralized form tracking from manual tracking techniques like spreadsheets, folders, and email links. This change is required to ensure that no obligation falls between the cracks and to keep up with the various Pillar Two deadlines and filing channels.

A curated, centralized, and updated collection of Pillar Two forms by jurisdiction is offered by the Orbitax Pillar Two Tax Forms library, a loBE-compliant platform. It is intended for multinational corporations, internal tax teams, and advisory firms that require a dependable method to handle Pillar Two filings. It is accessible through the Orbitax Marketplace.

• Centralized Access:By using a single library of Pillar Two tax forms, you can do away with the need to search individual country portals.
• Streamlined Workflow: For smooth execution, incorporate forms straight into your Global Minimum Tax workflows.
• Reliable Compliance: Make use of the powerful Pillar Two compliance software that is intended to assist your larger GloBE compliance plan.

Use the Contact Support button to contact us if you need assistance mapping the responsibilities of your group to the appropriate Pillar Two forms.