Oracle and Deloitte Facilitate OECD Pillar Two required for Multinationals

Oracle is enhancing Oracle Fusion Cloud Enterprise Performance Management (EPM), collaborating with Deloitte for implementation services. This synergy aids multinational organizations in navigating upcoming Organization for Economic Co-operation and Development (OECD) Pillar Two tax requirements. The integrated approach streamlines intricate tax processes and reporting, fostering improved cohesion between finance, sales, and taxation through comprehensive process automation, providing finance leaders with enhanced capabilities.

The OECD’s Pillar Two requirements represent the largest change to global corporate taxation in decades. The new rules effectively create a global minimum tax rate of 15 percent and significantly impact financial processes and operating structures for large multinational organizations. With Deloitte’s Tax Technology Consulting existing Oracle implementation service team, companies can enhance tax reporting with the Pillar Two solution in Oracle Cloud EPM. This complementary pairing can help organizations collaborate across tax, finance, and other operational areas; collect and manage data from various source systems, including the general ledger, subledgers, and more; and better model future impacts of the new requirements.

“International tax compliance is incredibly complex. To efficiently address the new Pillar Two requirements, organizations need to rapidly connect and analyze increasing amounts of data,” said René van Gassen, director, Tax Technology Consulting (TTC) at Deloitte Netherlands. “Our implementation skills along with Oracle’s solutions can enable finance leaders to effectively leverage Oracle’s technology to unite tax and finance processes and efficiently manage compliance.”

The new capabilities in Oracle Cloud EPM can help finance teams streamline complex tax processes. These capabilities include:

• Pillar Two data collection and management: Assist tax teams in automating the retrieval of data from diverse business systems, such as finance, HR, and sales, while formatting it to comply with Pillar Two data model standards. This ensures a robust audit trail, reducing the time spent on data collection and harmonization.
• Pillar Two Task Manager: Enhances coordination and collaboration throughout the financial close process, reducing delays. The user-friendly Task Manager facilitates task assignment and monitoring through a central dashboard, guiding users step by step in fulfilling their Pillar Two responsibilities. This ensures a smooth execution of the Pillar Two process for teams.
• Pillar Two tax forecasting and modeling: Empowers teams to forecast and model tax scenarios using Oracle Cloud EPM, aiding in anticipating the future implications of OECD requirements. This capability enables organizations to proactively prepare for the upcoming global minimum tax changes.

“As multinational organizations plan for the impact of the new Pillar Two global minimum tax regulations, technology is going to play a key role in helping enable accurate and efficient compliance,” said Hari Sankar, group vice president, Product Management at Oracle. “Pillar Two in Oracle Cloud EPM has best practices and advanced modeling capabilities built-in to enable customers to centralize controls, improve tax visibility, and adapt their tax strategies.”

“To prepare for Pillar Two reporting requirements, companies need a solution that connects and analyzes enterprise-wide data,” said Allison Matthews, Partner, Tax Technology Consulting (TTC) at Deloitte Tax LLP. “The combination of Deloitte’s implementation services and Oracle’s enterprise performance management technology is instrumental to be prepared for these global changes.”

Within Oracle Fusion Cloud Enterprise Resource Planning (ERP), Oracle Cloud EPM provides an extensive suite of performance management tools. It ensures the alignment of financial and operational planning, accelerates the financial closing process, and effectively oversees enterprise master data.