Oracle and Deloitte Help Multinational Organizations Prepare for OECD Pillar Two Requirements

Rhea-AI Summary

Oracle introduces new capabilities in Oracle Fusion Cloud EPM to help finance leaders navigate new tax complexities and regulations, in collaboration with Deloitte's Pillar Two implementation services. The combination aims to simplify complex tax processes, achieve better alignment between finance, sales, and taxation, and automate end-to-end processes, in response to the OECD's Pillar Two requirements.

Tax Technology Expert

The introduction of enhanced capabilities in Oracle Fusion Cloud EPM, in conjunction with Deloitte's Pillar Two implementation services, marks a significant step in aiding multinational organizations to comply with the OECD's Pillar Two tax requirements. The integration of these services is essential for companies as they navigate the complexities of a global minimum tax rate of 15 percent, a milestone in international tax reform. The ability to streamline data collection from diverse business systems and align it with tax requirements facilitates a robust audit trail, which is crucial for ensuring transparency and compliance. Furthermore, the Pillar Two Task Manager aids in optimizing the financial close process, a critical component for timely reporting and compliance.

From a tax technology perspective, the forecasting and modeling capabilities embedded within Oracle Cloud EPM empower finance teams to anticipate the implications of tax changes, enabling strategic decision-making. The synergy between Oracle's technology and Deloitte's tax expertise underscores the growing importance of integrated solutions in managing complex tax landscapes and ensuring compliance in an increasingly regulated global economy.

Financial Systems Analyst

The advancements in Oracle Cloud EPM, tailored to meet Pillar Two requirements, represent a significant leap in the functionality of enterprise performance management systems. The ability of these systems to handle intricate tax data and compliance processes not only improves efficiency but also reduces the potential for human error. The Task Manager's centralized dashboard for task assignment and monitoring contributes to a more streamlined and controlled financial close process. This is likely to be well-received by finance leaders who are under pressure to close books faster and with greater accuracy.

The integration of operational and financial planning within Oracle Cloud EPM, as part of Oracle Fusion Cloud ERP, is indicative of a broader trend towards convergence in business processes. Such convergence is vital for organizations to maintain agility and responsiveness in a dynamic regulatory environment. By improving tax visibility and enabling the adaptation of tax strategies, Oracle is positioning its EPM solution as a critical tool for finance teams facing the challenges of global tax compliance.

Corporate Strategy Advisor

The strategic implications of the OECD's Pillar Two tax requirements necessitate a re-evaluation of global operational structures for many multinational corporations. The collaboration between Oracle and Deloitte offers a comprehensive approach to managing these tax challenges. By leveraging technology to unite tax and finance processes, organizations can gain a competitive edge through enhanced compliance and operational efficiency. The ability to model future tax scenarios is particularly valuable, as it allows companies to proactively adjust their global tax strategies and potentially mitigate risks associated with the new tax regulations.

Moreover, the integration of tax and financial data within a centralized system facilitates better alignment between finance, sales and taxation, which can lead to more informed decision-making and strategic planning. As companies prepare for the implementation of Pillar Two, the combination of Oracle's EPM technology and Deloitte's implementation services could become an indispensable asset for finance leaders aiming to navigate the new tax landscape effectively.

New capabilities in Oracle Fusion Cloud EPM and Deloitte's Pillar Two implementation services help finance leaders navigate new tax complexities and regulations

AUSTIN, Texas, Jan. 10, 2024 /PRNewswire/ -- Oracle is introducing new capabilities to Oracle Fusion Cloud Enterprise Performance Management (EPM) that, when paired with Deloitte's implementation services, can help multinational organizations as they manage upcoming Organization for Economic Co-operation and Development (OECD) Pillar Two tax requirements. The combination of both offerings can help finance leaders simplify complex tax processes and reporting and achieve better alignment between finance, sales, and taxation through end-to-end process automation.

The OECD's Pillar Two requirements represent the largest change to global corporate taxation in decades. The new rules effectively create a global minimum tax rate of 15 percent and significantly impact financial processes and operating structures for large multinational organizations. With Deloitte's Tax Technology Consulting existing Oracle implementation service team, companies can enhance tax reporting with the Pillar Two solution in Oracle Cloud EPM. This complementary pairing can help organizations collaborate across tax, finance, and other operational areas; collect and manage data from various source systems, including the general ledger, subledgers, and more; and better model future impacts of the new requirements.

"International tax compliance is incredibly complex. To efficiently address the new Pillar Two requirements, organizations need to rapidly connect and analyze increasing amounts of data," said René van Gassen, director, Tax Technology Consulting (TTC) at Deloitte Netherlands. "Our implementation skills along with Oracle's solutions can enable finance leaders to effectively leverage Oracle's technology to unite tax and finance processes and efficiently manage compliance."

The new capabilities in Oracle Cloud EPM can help finance teams streamline complex tax processes. These capabilities include:

• Pillar Two data collection and management: Help tax teams automatically collect data from various business systems, including finance, HR, and sales systems, and format the data to align with Pillar Two data model requirements. This provides a strong audit trail and allows teams to spend less time collecting and harmonizing data.
• Pillar Two Task Manager: Streamlines coordination and collaboration across the entire financial close process, minimizing delays to the close. The easy-to-deploy Task Manager enables users to assign and monitor tasks from a central dashboard and provides a simple step-by-step process to guide them through their Pillar Two responsibilities. This helps teams ensure that the Pillar Two process runs as seamlessly as possible.
• Pillar Two tax forecasting and modeling: Provides teams with the ability to forecast and model tax scenarios in Oracle Cloud EPM. This helps predict future impacts of the new OECD requirements so organizations can better prepare for the new global minimum tax.

"As multinational organizations plan for the impact of the new Pillar Two global minimum tax regulations, technology is going to play a key role in helping enable accurate and efficient compliance," said Hari Sankar, group vice president, Product Management at Oracle. "Pillar Two in Oracle Cloud EPM has best practices and advanced modeling capabilities built-in to enable customers to centralize controls, improve tax visibility, and adapt their tax strategies."

"To prepare for Pillar Two reporting requirements, companies need a solution that connects and analyzes enterprise-wide data," said Allison Matthews, Partner, Tax Technology Consulting (TTC) at Deloitte Tax LLP. "The combination of Deloitte's implementation services and Oracle's enterprise performance management technology is instrumental to be prepared for these global changes."

Part of Oracle Fusion Cloud Enterprise Resource Planning (ERP), Oracle Cloud EPM offers a comprehensive set of enterprise performance management capabilities to align financial and operational planning, close the books faster, and manage enterprise master data.

Learn more about Oracle Cloud EPM at Oracle.com and explore Deloitte's tax technology services at Deloitte.com. 

About Oracle
Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at oracle.com

About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (DTTL), its global network of member firms, and their related entities (collectively, the "Deloitte organization"). DTTL ( also referred to as "Deloitte Global") and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.

Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our people deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society, and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte's more than 450,000 people worldwide make an impact that matters at www.deloitte.com

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Oracle, Java, MySQL, and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company--ushering in the new era of cloud computing.

 

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SOURCE Oracle

What are the new capabilities introduced by Oracle in Oracle Fusion Cloud EPM?

Oracle introduces new capabilities in Oracle Fusion Cloud EPM to help finance leaders navigate new tax complexities and regulations, in collaboration with Deloitte's Pillar Two implementation services.

How can multinational organizations benefit from the new capabilities in Oracle Fusion Cloud EPM?

Multinational organizations can simplify complex tax processes, achieve better alignment between finance, sales, and taxation, and automate end-to-end processes in response to the OECD's Pillar Two requirements.

What is the impact of the OECD's Pillar Two requirements on multinational organizations?

The new rules create a global minimum tax rate of 15 percent and significantly impact financial processes and operating structures for large multinational organizations.

How can Deloitte's implementation services enhance tax reporting with the Pillar Two solution in Oracle Cloud EPM?

Deloitte's Tax Technology Consulting existing Oracle implementation service team can help companies collaborate across tax, finance, and other operational areas, collect and manage data from various source systems, and better model future impacts of the new requirements.

What are the key capabilities of Pillar Two in Oracle Cloud EPM?

The capabilities include Pillar Two data collection and management, Pillar Two Task Manager, and Pillar Two tax forecasting and modeling.