EN
keyboard_arrow_down
Choose a language:

Tax Rate Analyzer - Analysis of the group tax rate

Automation and standardization of group tax assessments

Your challenge with IFRS group financial statements

The group tax rate and tax reconciliation are mandatory disclosures in the IFRS consolidated financial statements and are determined from the tax reporting of the individual group companies. As it is one of the most important tax indicators, the analysis of the group tax rate is of great importance. However, the influencing factors are often not sufficiently known or can only be portrayed manually with a great deal of additional effort. For internationally operating companies, a detailed analysis and graphical presentation of the group tax rate based on tax reconciliation calculations takes up to two weeks. This means that valuable personnel resources are tied up at great expense in terms of time.

Our solution? Tax Rate Analyzer - Analyze the group tax rate with the help of the tax reconciliation calculation

PwC's Tax Rate Analyzer automates and standardizes the evaluation process of the group tax rate. As part of our service, we take into account the individual needs of your company and provide you with an interactive solution that graphically presents the results.

By evaluating the tax reconciliation at company level and reconciliation item, you gain in-depth insights into the value drivers of the group tax rate. For example, you can see at a glance in which reconciliation items high tax effects occur and which group companies are specifically affected by this. Together, we analyze the results and discuss the potential for optimizing the group tax rate. Extensions to the depth and type of analysis can be made at any time in consultation with you. In addition, multi-year and trend analyses are possible.

In the standard version, the Tax Rate Analyzer presents the following items in several clear dashboards:

view_list

Comprehensive overview of the group tax rate

data_usage

Reconciliation of expected to actual tax expense

call_split

Deviations of actual from expected tax rate

visibility

Overview of tax value drivers at company level

account_balance

Analysis of loss carried forward and identification of expiring loss carried forward

Our approach in 3 steps

01

Data collection

  • In order to be able to prepare your data, we need the totals statement as well as the reconciliation statement and a list of companies from your ERP system.
  • If further analysis is to take place, the extended data requirements will be coordinated with you in the kick-off meeting.
02

Data preparation

  • Based on the mandatory disclosures in the consolidated financial statements, a workflow was set up, which classifies the most important key figures and determines further indicators relevant for decision making.
  • The data is checked for plausibility by the PwC Engagement Team.
03

Data analysis

  • The prepared data is provided in interactive dashboards in PwC Workbench, enabling immediate graphical evaluation of the tax reconciliation.
  • The dashboard dynamically adapts to the selection of specific years, divisions or subsidiaries. This allows the reconciliation of tax expense and impact on the tax rate to be presented visibly and comprehensibly across many levels.

The benefits of Tax Rate Analyzer at a glance

thumb_upIndividual solution

Get solutions based on your needs and requirements

playlist_add_checkAssessment on demand

View your group tax rate on an annual, quarterly, monthly or daily basis

trending_upIdentify optimization potentials

Identify further optimization potentials based on data-driven input

languageMore time for your work

Use the time savings to implement tax optimizations based on the results of the Tax Rate Analyzer

view_moduleMeasure optimization success

Analyze the effectiveness of your tax optimizations over time

settingsAutomated workflow

Increase the efficiency of your workflows through an automated and standardized approach

Pricing

Familiarize yourself with our net prices. VAT and expenses are not included.

Implementation
€ 9,500one-time fee
  • Interview on depth of analysis
  • Creation of requirements list
  • Analysis and validation of data sets
  • Customization of the workflow
  • Visualization
  • Provisioning in the workbench
Follow-up asessments
€ 3,000per assessment
  • Analysis and validation of data sets
  • Visualization
  • Provisioning in the workbench
Additional services
€ 1,950per day
  • E.g. detailed evaluations
  • Trend analyses
  • Data reports

Automate your group tax assessments now!

For more information about Tax Rate Analyzer, please leave us your business email address here.

check
Thank you for your request! We will get back to you as soon as possible.

FAQ

How is the group tax rate calculated?

 

The group tax rate, as one of the most important tax ratios, is determined from the ratio of current and deferred income tax expense to the group's IFRS earnings before income taxes. The ratio thus provides aggregated information on the Group's tax burden.


What is tax reconciliation?

 

The tax reconciliation statement in accordance with IAS 12.81 (c) is a mandatory disclosure in the notes to IFRS consolidated financial statements. It reconciles the expected tax expense to the actual tax expense. The tax effects that lead to a higher or lower tax expense must be presented. It is therefore suitable for a well-founded analysis of the Group tax rate.


Does the product support me in my IFRS consolidated financial statements?

 

The product is used for the downstream analysis of the factors influencing the group tax rate, its development between reporting dates and the identification of optimization potential.

.

You might also be interested in: