Pillar 2: Strengthening Your Tax Provision Process
The global minimum tax adds a new layer of data and calculation to provisioning. It is also a prompt to put the underlying process on a firmer footing.
More data, more calculation, same deadlines
Pillar 2 introduces a global minimum effective tax rate for in-scope groups. In practice that means more granular, jurisdiction-by-jurisdiction data and additional calculations to determine any top-up tax - all of which has to feed into the provision and the disclosures, against the same reporting deadlines you already work to.
For teams whose provision is assembled largely by hand each period, adding this layer makes existing pressure points obvious. That is why so many are looking again at how their provisioning process actually works.
The opportunityBuild Pillar 2 on a solid foundation
The most resilient approach is to make sure the underlying provision process is standardised, well-mapped, and properly controlled - so the Pillar 2 calculations sit on a dependable base rather than another fragile spreadsheet. Get the foundation right and the additional complexity becomes manageable rather than overwhelming.
To be clear about our role: we focus on that underlying provision process - the data, automation, and controls beneath it - not on the Pillar 2 calculations themselves. We help make your process strong enough to carry whatever Pillar 2 work you and your advisers need to do.
A stronger provision, ready for Pillar 2
Process review
We map where your provision data comes from and where the manual effort and risk sit today, before changing anything.
Standardised inputs
Consistent, well-structured data and templates, so the additional Pillar 2 calculations have a reliable base to work from.
Automation where it counts
Automated data collection and trial balance mapping to cut manual handling, reduce error, and free up review time.
Controls and documentation
Robust review workflows and clear documentation, so your provision process is repeatable, well-governed, and stands up at audit.
Frequently asked questions
How does Pillar 2 affect the tax provision?
Pillar 2 introduces a global minimum effective tax rate, which means in-scope groups now have to gather more granular, jurisdiction-by-jurisdiction data and perform additional calculations to determine any top-up tax. That extra layer has to feed into the provision and the disclosures, which puts more pressure on an already busy reporting process.
Why are teams revisiting their provisioning process now?
Because Pillar 2 has exposed where existing processes are fragile. Where data is pulled together manually each period, adding another set of calculations and data points makes the strain obvious. Many teams are taking the opportunity to standardise and automate the underlying process so the Pillar 2 layer sits on a solid foundation rather than another spreadsheet.
What does an improvement project look like?
Typically it starts with understanding where data comes from and where the manual effort and risk sit today. From there we standardise the inputs, automate data collection and mapping where it makes sense, and strengthen review - so the provision, including the Pillar 2 elements, is faster, more accurate, and easier to support at audit.
Rethinking your provision?
Whether it is Pillar 2 specifically or your provisioning process more broadly, we are happy to talk it through - no obligation.
Last reviewed: June 2026