Pillar 2 Essentials: What Every Group Needs to Know

Early preparation is not just advisable, it is essential. Failure to act now could result in financial exposure, reputational risk, and operational disruption.

Understanding the Fundamentals

Pillar 2 introduces the Global Anti-Base Erosion (GloBE) rules, which apply to multinational groups with consolidated revenues of €750 million or more. These rules impose a minimum effective tax rate of 15% on profits in each jurisdiction. If a jurisdiction falls below this threshold, a top-up tax may apply.

Our experts explain which groups fall within scope, outline key deadlines, and detail the compliance obligations you cannot afford to overlook. The complexity lies not only in the calculations but also in the data requirements. Groups must gather granular financial and tax data across multiple jurisdictions, often from systems that were never designed for this level of detail.

Why Early Action Matters

Delays in preparation can lead to inaccurate filings, penalties, and missed opportunities to optimise your tax position. Many organisations assume that existing tax incentives will shield them from Pillar 2 implications. In reality, these incentives may create permanent differences that increase exposure. Understanding these nuances is key to avoiding surprises.

Turning Compliance into Opportunity

Pillar 2 is complex, but with the right approach, compliance can become a strategic advantage. By acting early, organisations can strengthen governance, improve data processes, and identify opportunities to optimise their global tax position.

Your Next Step

Watch Episode 1 of our video series for a clear, practical overview of the essentials. For tailored advice on your organisation’s position, contact our team, we are here to help.