What is the OECD Pillar Two framework?

The OECD Pillar Two framework establishes a global minimum tax rate of 15%, aimed at addressing base erosion and profit shifting. This significant reform affects multinational enterprises (MNEs) operating in multiple countries, leading to new compliance complexities.

Understanding how this framework impacts your business is crucial to managing risks effectively and leveraging financial opportunities.

Timeline for the implementation of Greece’s new tax rules

The new OECD Pillar Two rules took effect in Greece from one January 2024. This aligns with the global timeline for implementing the 15% minimum corporate tax rate. Multinational enterprises operating in or involving Greece will need to ensure compliance, including fulfilling new reporting obligations and adjusting their tax strategies to meet these rules. Early preparation is key to navigating the challenges and taking advantage of the potential benefits introduced by this framework.

Who is impacted by Pillar Two in Greece?

Pillar Two primarily affects large multinational enterprises with global revenues of at least €750 million. These companies must assess their operations in Greece to ensure compliance with the global minimum corporate tax requirements.

In particular, companies with cross-border activities, complex organisational structures, and significant intra-group transactions are most likely to be impacted. Local subsidiaries of foreign multinational groups must also meet the enhanced reporting and calculation rules set out under Pillar Two.

Moreover, tax authorities and advisers in Greece will need to adapt their practices to support the implementation and enforcement of these rules. Small and medium-sized enterprises (SMEs) that operate solely within Greece are generally outside the framework’s scope, unless they are linked to larger multinational structures exceeding the revenue threshold.

Steps organisations should consider

If your business falls within the scope of these changes, it is essential to act promptly to reduce potential risks and maintain preparedness.

• Begin by assessing your organisation’s exposure to Pillar Two taxation.
• Ensure your financial reporting processes are up to date and equipped to meet the new compliance standards.
• Partner with experienced tax professionals to help develop robust strategies for optimising your tax position under this evolving framework.

Guiding your business through Pillar Two complexity

RSM brings together a distinctive blend of global insight and professional expertise to help organisations address the complexities of the OECD Pillar Two rules with confidence. We deliver proactive strategies designed to minimise financial risks while supporting compliance with the new tax requirements.

Our team provides tailored solutions that align with your specific business objectives, ensuring a personalised and effective approach.

With the strength of the global RSM network combined with our local expertise, your organisation can be fully equipped to meet the challenges of this changing tax landscape.

Prepare for Pillar Two success with RSM Greece

Understanding the complexities of the Pillar Two framework can be challenging, but RSM Greece is your trusted partner in navigating these changes with assurance. Through expert guidance and bespoke strategies, we empower middle market organisations in Greece to adapt seamlessly, ensuring full compliance and optimising tax outcomes with ease.

Reach out to an RSM Expert

If you are looking to drive positive change in your organisation and thrive within the dynamic global environment, contact us today. Our dedicated team of professionals are ready to guide you every step of the way, ensuring your business remains compliant, secure, and competitive.