The Pillar Two rules are going to continue to evolve long after they are initially implemented in 2024. These changes are going to put pressure on a number of important areas for multinationals, including legal entity and operational structures, IT systems and financial reporting processes, just to name a few.
In this episode, Tony Burzinski, KPMG Accounting Advisory partner, and James Sanderson, KPMG Tax partner, join the show for the first ever Pillar Two draft! In the two-round draft, Tony and James take turns picking the most important long-term impacts of Pillar Two that companies should start capitalizing on today.
- Multinational companies with consolidated revenues of at least €750M
- 2023 year-end reporting – Evaluate whether existing SEC rules require disclosure of the potential effects of Pillar Two
- January 1, 2024 – Pillar Two rules begin to go into effect
- Q1 2024 reporting – Account for the effects of Pillar Two in the interim tax provision
- 00:25 - Introduction
- 03:40 – First overall pick: the Globe Information Return
- 07:55 – Second pick: safe harbors
- 11:00 – Third pick: legal entity rationalization
- 14:25 – Fourth pick: finance transformation