Are you ready for BEPS 2.0 Pillar 2?
With the introduction of global minimum taxation, companies are facing numerous challenges. In order to fulfil the resulting tax payment and declaration obligations, they must introduce a completely new tax calculation. Compliance with the global minimum tax requirements is very complex and requires constant monitoring and review of the company's tax position. Our innovative solution KBAT (KPMG BEPS 2.0 Automation Technology) supports you in this process.
Claus Jochimsen-von Gfug
Partner, International Transaction Tax
KPMG AG Wirtschaftsprüfungsgesellschaft
KBAT categorises your business units according to Pillar 2 types and calculates the minimum tax based on your income, taxes and effective tax rate as well as a comparison with the minimum tax rate - both for the ultimate parent company and for the national companies. Efficient data management facilitates the fulfilment of your tax obligations, with KBAT using both ERP and non-ERP systems as a data basis. The cloud-based solution can be navigated via a dashboard. You can download your results as Excel files. A print version of the minimum tax report is also available - and as soon as the OECD publishes the XML schema for the minimum tax report, this will also be implemented in KBAT so that the corresponding data records can be retrieved. If you have outsourced tasks to external service providers, for example as part of a managed service approach, KBAT can also be provided for these process steps.
KBAT can be used via our innovative Digital Gateway platform. Digital Gateway gives you access to all the tax and legal technology solutions you use. You can find more information here.
KBAT and Digital Gateway: a strong pair:
- Management of relevant entities: Management of entity data (including shareholders), including automatic GloBE classification and visualisation in an organisational chart
- Data entry: Flexible data entry options, from uploading Excel templates to immediate data extraction
- Smart questionnaires: Supplement data queries with user-specific questionnaires
- Granularity of data capture: Breakdown of relevant customisations into granular data fields that can be mapped to your source systems
- Safe harbour calculation: ability to include the limited data set required to perform safe harbour calculations and report on the results
- Calculation of GloBE income and recognised taxes: Full calculation of GloBE income and recognised taxes (including recast) and aggregation on a company and jurisdiction basis
- Exercise of options and scenario calculations: Management of one-year, five-year and permanent elections with the ability to create different time periods for scenario planning
- Role-based access: Role-based access controls to set up access and workflow according to user roles. This enables effective segregation of duties
- Detailed calculation results and audit trail capability: A detailed Excel-based report allows calculation results to be tracked and a detailed audit trail report provides information on all changes made
- QDMTT coverage: Support for QDMTT calculations and provision of standard outputs where localisation is required
- Visualisation and analytics: Powerful dashboards within KBAT and the Digital Gateway analytics module
- GloBE Information Return: Preparation of the GIR on a PDF basis and as an XML file (as soon as available from the OECD), the latter for submission to the relevant tax authorities
This is required for the use of KBAT
For a good data basis, it is advantageous to set up a data model that takes the following aspects into account:
- Identification of relevant data
- Mapping and structuring the data
- Data retrieval - automated or by means of individual questionnaires
- Ensuring the quality of the data
- Adaptability
To ensure these aspects, you can utilise other aspects of our Digital Gateway platform - for example, our Legal Entity Management, with which you can easily record your ongoing group changes and evaluate them in terms of Pillar 2 relevance.
Interested? Get in touch with us.
