Accounting for Pillar 2

EasyChair Preprint 14377

Abstract

This research aims to explore the implementation and impact of Pillar 2, a novel framework in international tax law designed to address tax base erosion by establishing a global minimum tax rate of 15%. The study examines the collaborative effort of 140 countries amidst global geopolitical tensions to adopt this framework and analyzes its implications for multinational corporations (MNCs). It investigates the legislative modifications required in host countries, the challenges posed to tax and financial reporting, and the operational provisions of the Global Anti-Base Erosion (GloBE) Rules. The research further delves into the intricacies of compliance, the role of tax professionals, and the integration of tax and financial accounting systems to optimize compliance and risk management. By assessing the effects of Pillar 2 on tax strategies, financial reporting, and state and local taxes, the article aims to provide comprehensive insights into the operational and strategic adjustments necessary for MNCs in the evolving international tax landscape.

Keyphrases: Accounting, BEPS, Corporate taxation, International taxation, OECD, Pillar 2, Pillar two, State and Local Tax

@booklet{EasyChair:14377,
  author    = {Tarab Kumar},
  title     = {Accounting for Pillar 2},
  howpublished = {EasyChair Preprint 14377},
  year      = {EasyChair, 2024}}