Oracle and Deloitte are joining forces to help multinational organisations prepare for the upcoming Organisation for Economic Co-operation and Development (OECD) Pillar Two tax requirements.
In this connection, Oracle is adding new capabilities to Oracle Fusion Cloud Enterprise Performance Management (EPM). When combined with the Pillar Two implementation services of Deloitte, the new capabilities will help finance leaders in navigating emerging tax complexities and regulatory changes.
The integration of both offerings is said to provide a valuable tool for finance leaders to streamline intricate tax processes and reporting, fostering improved cohesion between finance, sales, and taxation through the seamless automation of end-to-end processes.
The Pillar Two requirements set forth by the OECD mark a monumental shift in global corporate taxation, representing the most significant change in decades. These regulations establish a global minimum tax rate of 15%, exerting substantial influence on financial processes and operational structures for large multinational entities.
Leveraging Deloitte’s tax technology consulting (TTC) alongside the existing Oracle implementation service team, companies can elevate their tax reporting capabilities by incorporating the Pillar Two solution within Oracle Cloud EPM.
The synergistic pairing facilitates collaboration across various organisational facets, thereby enabling the effective collection and management of data from diverse source systems such as general ledgers and subledgers.
Additionally, it empowers organisations to model and anticipate the future impacts of the newly imposed requirements with greater precision.
Deloitte Netherlands TTC director René van Gassen said: “International tax compliance is incredibly complex. To efficiently address the new Pillar Two requirements, organisations need to rapidly connect and analyse increasing amounts of data.
“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 enhanced capabilities in Oracle Cloud EPM are said to offer significant support to finance teams by streamlining intricate tax processes. These capabilities encompass automated data collection from various business systems, such as finance, HR, and sales, formatting it to adhere to Pillar Two data model requirements.
The introduction of the Pillar Two Task Manager contributes to the efficiency of the financial close process, minimising delays through a user-friendly, central dashboard for task assignment and monitoring. Additionally, it guides users step-by-step in fulfilling their Pillar Two responsibilities.
Furthermore, the platform facilitates Pillar Two tax forecasting and modelling, empowering teams to anticipate and model tax scenarios within Oracle Cloud EPM.
Oracle product management group vice president Hari Sankar said: “As multinational organisations 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.
“Pillar Two in Oracle Cloud EPM has best practices and advanced modeling capabilities built-in to enable customers to centralise controls, improve tax visibility, and adapt their tax strategies.”
