Navigating the first Pillar Two compliance cycle: A practical, technology-driven

As multinational organisations enter their first Pillar Two compliance cycle, tax teams are facing a new level of complexity. From initial registrations and notifications through to GloBE Information Returns (GIR), local filings, and top-up tax calculations, the compliance burden is both broad and deeply technical.

What makes this challenge even greater is that Pillar Two is not a one-off exercise - it introduces an ongoing, data-intensive reporting requirement that demands accuracy, consistency, and audit readiness from day one.

The good news? With the right approach and supporting technology, organisations can move from reactive compliance to a structured, scalable process.

We recently hosted a webinar with our partners TPA, to explore practical, technology driven approaches to help tax teams successfully navigate their first Pillar Two cycle.

1. Build a structured approach to multi-layered compliance requirements

Pillar Two introduces multiple overlapping obligations across jurisdictions, including:

• Registrations and notifications

• GloBE Information Returns (GIR)

• Local self-assessment filings

• QDMTT, IIR, and UTPR calculations

Managing these requirements in isolation can quickly lead to duplication, inconsistencies, and increased risk.

Instead, tax teams should:

• Map obligations centrally across all jurisdictions to ensure nothing is missed

• Align timelines and workflows for global and local filings

• Standardise processes for data collection, calculation, and submission

A structured approach ensures that global and local requirements are connected, reducing the risk of conflicting filings and improving overall control.

2. Strengthen data foundations to support accurate GloBE reporting

At the core of Pillar Two compliance lies data - large volumes of it, coming from multiple systems, entities, and jurisdictions.

Key challenges include:

• Inconsistent data sources across entities

• Manual adjustments and reconciliations

• Complex calculations for effective tax rates and top-up taxes

• Difficulty aligning financial data with tax-specific requirements

To address this, organisations should focus on:

• Creating a single, reliable data model for Pillar Two calculations

• Standardising data inputs across entities and jurisdictions

• Implementing validation checks to catch errors early

• Ensuring clear audit trails for all adjustments and calculations

Getting the data right is critical - not just for compliance, but for defending positions under increasing scrutiny from tax authorities.

3. Use technology to manage complexity and ensure audit readiness

Manual processes and spreadsheets are simply not equipped to handle the scale and complexity of Pillar Two.

A technology-enabled approach allows tax teams to:

• Automate complex calculations, including GloBE ETRs and top-up taxes

• Handle multiple scenarios, such as QDMTT, IIR, and UTPR interactions

• Maintain consistency across global and local filings

• Track changes and maintain full transparency for audit purposes

Importantly, technology also supports:

• End-to-end workflow management, from data collection through to filing

• Role-based access and controls, ensuring accountability across teams

• Scalability, as requirements evolve and jurisdictions adopt new rules

By embedding automation and standardisation, organisations can significantly reduce manual effort while improving accuracy and control.

Final thoughts: From first-time compliance to a repeatable process

The first Pillar Two compliance cycle is a significant milestone - but it's only the beginning.

Organisations that take a fragmented or manual approach will struggle to keep up as requirements expand and enforcement increases. In contrast, those that invest in structured processes, strong data foundations, and the right technology will be able to:

• Reduce compliance risk

• Improve efficiency and timelines

• Enhance audit readiness

• Build a scalable framework for future reporting cycles

Pillar Two doesn't have to be overwhelming - but it does require a smarter, more integrated approach.

Ready to simplify your Pillar Two compliance?

Discover how our Pillar Two software helps multinational tax teams manage GloBE calculations, streamline data collection, and stay compliant across jurisdictions - all within a single, secure platform.

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