The calculation of tax provisions is an essential part of the annual financial statements and reflects future tax obligations arising from a company's business activities. The required data originates from ERP and other systems and is also relevant for other reporting requirements such as minimum tax (Pillar II), country-by-country reporting (CbCR) or public CbCR. They are also often the basis for preparing tax returns and e-balance sheets.

However, for many companies, manual tax calculations lead to redundancies, interface losses, an increased risk of errors and other challenges.

A workflow-optimised, transparent and automated reporting and declaration process creates freedom and ensures an efficient, digital tax lifecycle - from tax accruals to declarations and audits.

Sabine Kusch

Partner, Tax

KPMG AG Wirtschaftsprüfungsgesellschaft

Advantages of technological solutions

By using an appropriate technological solution, many problems of manual processes can be avoided:

Efficient use of resources
Clear responsibilities
Optimised processes
Reduction of manual activities
Error avoidance
Time and cost savings

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How we support you

We provide you with comprehensive advice on the design of your reporting and declaration process and the selection of suitable technology. The focus here is on minimising data and system breaks, developing an integrated and, where possible, automated tax return and the availability of data for other tax tasks.

By working together with a large number of cooperation partners, including Lucanet and fwsb, as well as other tool providers, we provide technology-neutral advice and develop solutions tailored to your needs.

Optimisation of annual financial statement and declaration processes for tax purposes
- Support in choosing the right tool.
- Implementation of a customised technological solution in the existing infrastructure.
- Increasing efficiency and functionality by optimising and expanding existing solutions.
- Support in the optimisation of processes and the year-end timeline (fast close).
Technical support for tax reporting
- Support with the calculation of deferred and actual taxes in the individual financial statements.
- Support in the consideration of tax effects on consolidation entries.
- Support in the preparation of tax disclosures in the notes to the annual financial statements.
- Support in determining deferred taxes and designing processes, notes in the context of an IFRS conversion.
Health Check Tax Accounting & Pillar 2
- Inventory through systematic questionnaires
- Analysis of actual processes/development of target processes
- Derivation of recommendations for action and implementation proposals
- Implementation/optimisation of tax accounting and tax declaration solutions
Minimum tax (Pillar 2) / CbCR
- Support in the design of tax processes (from data procurement to declaration)
- Support in defining the data origin for the relevant data points
- Support with the implementation of a technological solution

Our consulting approach

Optional Phase 0: Vendor Selection

Support in the selection of the software co-operation partner and tools.

Phase 1: Workshop on data flow and processes

Analysis of the current data flows
processes and definition of target processes and interfaces.

Phase 2: Kick-off and project management

Project start with organisation
Coordination of the procedure
meetings
Documentation

Phase 3: Technical and IT concept

Definition of responsibilities, user rights and master data
Conceptual preparation and technical design of tax reports, data mapping, special issues, validations and the dispatch of tax returns, including a written technical concept.

Phase 4: Implementation and testing

Setting up master data and interfaces
Implementation of data migration for tax reporting and tax balance sheet for previous year's period
Testing the functions
Creation of a written test concept.

Phase 5: Training

Creation of training documents
Realisation of key user and user training courses.

Phase 6: Go-live and support

Support and hotline assistance during the first application phase (go-live).

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Webcasts on the topic

Webcast - Tax Reimagined: Innovative solutions for the challenges of Pillar 2 and tax accounting

This edition focused on the challenges that the implementation of Pillar 2 poses for companies and how these make it necessary to optimise tax processes.

Webcast - Transfer Pricing Insights: Country-by-country reporting in the focus of Pillar 2 and EU Public CbCR

The webcast provides in-depth insights into the key regulations of country-by-country tax reporting. Learn more about the additional requirements that must be met in order for companies to benefit from these reports under Pillar 2 and the EU Public CbCR rules.