Proactive Step towards Pillar Two

Take a proactive step towards Pillar Two compliance with PlaidCloud’s purpose-built tax allocation and calculation solution. Pillar Two requirements, implications, and challenges are summarized in the “Preparing for Pillar Two” article (read), written by PlaidCloud’s trusted Transfer Pricing Advisory Partner, Sean Faulkner, Co-Managing Partner of Valentiam Group.

As described in the article, data collection and calculation requirements will put a significant burden on many organizations — not because the information doesn’t currently exist, but because the centralization, presentation, and calculations required are new and oftentimes more complex than existing processes. In addition, the sheer scale and rigor of reporting (e.g., for every entity within a MNE and each jurisdiction in which they operate) cannot be achieved through Excel models.

The foundation of PlaidCloud is that of an enterprise-grade analytics engine. It is built to support complex yet sustainable analytical models — with the ability to seamlessly integrate data in any format, from any system or tool, and transform it into a single, harmonized view of your organization that is timely, digestible, and actionable. Achieving readiness for Pillar Two is closer and easier than you think.

In the example below, you will see a detailed P&L Report that is a common output for organizations leveraging PlaidCloud today. With detailed tax allocations and complex reporting structures managed and executed within PlaidCloud’s analytical models, they can see the discrete details and dimensions needed to report in minutes.

Example PlaidCloud P&L Report

In addition, PlaidCloud has point-and-click functionality allowing for easy updates to models and calculations. Organizations can quickly respond to changes in their business, market conditions, or regulations.

Additional key features and functions of PlaidCloud include:

  • Multi-Currency Reporting: PlaidCloud can empower reporting in multiple currencies on the same ledger, facilitating global financial analysis.
  • Margin Optimization: With the change in tax burden, it may benefit organizations to reconsider the location of profit centers or focus on different product lines. By modeling potential shifts, it allows for scenario building to maximize margins and inform decision-making.
  • Full Traceability & Auditability: PlaidCloud provides full traceability. This will enable you to examine margins by product, function, and entity across the entire multinational organization. This transparency proves invaluable for audit and compliance purposes.

Using PlaidCloud for Pillar Two will showcase the power of technology-driven solutions in solving complex financial challenges for organizations. PlaidCloud not only streamlines the calculation and application of varying taxation schemes across all jurisdictions, but it also helps companies adjust its operations to minimize the financial impact. Acting now will help set the stage for future growth and success. Want to learn more? Start with a conversation. Contact PlaidCloud today >