Wolters Kluwer global minimum tax software launches in North America

Wolters Kluwer announced the availability of its CCH Tagetik Global Minimum Tax solution in North America.

The program is designed to help multinational companies headquartered in North America collect, align, calculate and report integrated financial and tax data in accordance with Organization for Economic Co-operation and Development Pillar Two tax requirements.

The OECD Pillar Two framework is part of efforts to create a 15% global minimum tax in every jurisdiction in which a large, multinational entity does business. While the effort was at first led by the US in 2021, subsequent political frictions have made the country's participation in the regime less certain. Treasury Secretary Janet Yellen saying late last year the U.S. is not yet ready to ratify the tax agreement. Other countries, such as Italy, are experiencing more difficulty. However, with significant economies including Canada, the European Union, the United Kingdom and Japan having already announced they are implementing the OECD Pillar Two requirements, multinational companies operating in these jurisdictions will now need to consider and address the resulting impact on their tax strategy and operating model.

The solution enables users to automatically collect, aggregate and store data; map Pillar 2 calculation objects; align tax and finance teams and accelerate financial close; automatically calculate top-up tax; allocate tax amounts to impacted entities; report country-by-country reporting and Pillar 2 data; collaborate with back-and-forth posting; access a log of past versions and processes; configure workflows, responsibilities and deadlines; and test cash, effective tax rate and safe harbor scenarios with simulations.

"There is now a critical need for multinational companies to meet and manage the complex global requirements related to OECD Pillar Two," said Ralf Gärtner, senior vice president and general manager of corporate performance and ESG at Wolters Kluwer, in a statement. "We are committed to continuous development of innovative and integrated technologies to support the office of the CFO. Our new Global Minimum Tax expert solution enables CFOs and tax leaders to collect, aggregate and analyze fragmented data and supports the end-to-end tax process, providing vital insights for tax strategy planning."