Pillar Two

The introduction of the Pillar Two Global Anti-Base Erosion Rules represents a major shift in the international tax landscape. Multinational enterprises and large domestic groups with revenues of at least EUR 750 million in at least two of the four fiscal years preceding the tested fiscal year must now comply with rules designed to ensure a minimum effective tax rate of 15% in each jurisdiction where they operate. 

These rules introduce complex calculations, significant data requirements, and new reporting obligations that affect both tax compliance and financial reporting. 

BDO helps organisations manage these obligations with a pragmatic and coordinated approach, combining strong Luxembourg expertise with the capabilities of the BDO global network. 

Luxembourg expertise backed by a global network 

Our Pillar Two services focus on helping groups meet their local advisory and compliance needs efficiently, with the core of our expertise residing in an in-depth knowledge of the nuances of the Luxembourg Pillar Two environment. 
At the same time, as part of the wider BDO global network, we assist clients in understanding the impact of the Pillar Two rules on their group structure and operations, including: 

This combination of local expertise and global coordination enables us to deliver pragmatic solutions tailored to the structure and operations of each group.

BDO’s multidisciplinary answer to Pillar Two

Pillar Two’s implications extend well beyond tax compliance and tax cost exercises. The rules interact with several other regulatory and reporting frameworks and may require adjustments to existing processes and disclosures, such as: 

• Country-by-Country Reporting consistency 
• Financial statement disclosures
• Tax provisioning and internal reporting processes

BDO brings together multidisciplinary teams with experience in tax, accounting, reporting and advisory to help organisations ensure that Pillar Two considerations are properly reflected across their reporting environment and integrated into existing governance and compliance frameworks.