Work

Pillar Two disclosures in annual reports of European listed companies

Year: 2024

Type: article

Abstract: This survey examines the impact of the Pillar Two income tax legislation as detailed in the 2023 annual reports of 100 large listed European firms. While 71% of companies indicated that the impact of Pillar Two income taxes was not significant, only a third of companies with an IFRS effective tax rate between 15% and 20% expected the impact to be insignificant. Approximately 25% of companies quantified the expected impact, with 90% of these disclosing it as a point estimate or a range of less than 1 percentage point of ETR. However, only 10% disclosed an expected increase in effective tax rate aligning with the OECD’s estimates. Pillar Two income taxes do not appear to have been a significant audit concern in the 2023 financial statements.

Source: Maandblad Voor Accountancy en Bedrijfseconomie

DOI: 10.5117/mab.98.136265

Authors: Pieter Dekker, Marcel Kriek

Language: English

Topic: Corporate Taxation and Avoidance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: diamond

OpenAlex ID: W4404758099

FWCI: 1.019

Cites: 3

Cited by: 1

Related to: 10