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Modeling a World of Tax

The far-reaching power of KPMG tax models

Adaptive tax modeling

Legislative attempts to simplify the corporate tax code have only created additional layers of new rules and concepts on top of previous ones. As new U.S. international tax regulations are proposed or enacted, complexity will likely increase further. Compounding the international tax challenges, the OECD’s two-pillar approach to modernizing the global tax system requires multinational companies to consider the different paths countries are taking in response to OECD efforts.

As businesses struggle to evaluate the impacts of these shifting tax rules, the days of back-of-the-envelope calculations for analyzing tax law changes are gone. Today, reliable planning requires models that are tailored, nimble, and sophisticated. That’s why KPMG’s “right-sized” adaptive tax modeling approach focuses on making the model yours.

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Accessible

Full, unfettered access to KPMG tax models provides you and your team with control, speed, technical accuracy, and the ability to manage costs throughout the tax lifecycle.

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Integrated

KPMG modeling tools use a consistent architecture that leverages common data inputs (e.g., entity hierarchy and financial statements) across multiple models and links relevant outputs of one model to inputs of other dependent models and calculations.

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Empowering

High-quality detailed reporting and robust C-suite visualizations help teams identify tax opportunities and risks, while communicating with key nontax stakeholders

KPMG modeling tools

Built and maintained by KPMG quantitative modeling leaders and our Washington National Tax professionals.

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KPMG international tax reform analyzer (ITRA)

KPMG international tax reform analyzer (ITRA)

Through extensive modeling of the U.S. international tax rules, the KPMG international tax reform analyzer (ITRA) can help provide increased visibility into your global tax profile, the key drivers of your global effective tax rate, and steps to potentially improve your tax position.

Our ITRA is fast, transparent and constantly updated, with built-in scalability and scenario planning, so you can model by a full range of customizable parameters, including bespoke modeling or enhancements to your existing data and modeling tools. ITRA add-on tools include:

  • Bridge file automation, which eases loading of very large data files
  • Tax compliance connector, which interfaces directly with third-party corporate tax compliance and e-filing tools.
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KPMG BEPS 2.0 Model

KPMG BEPS 2.0 Model

The outcome of OECD international tax framework initiatives may present a new set of tax planning and compliance pressures. The KPMG BEPS 2.0 Model can help you understand, communicate, and evaluate actions considering the BEPS 2.0 initiative, across both Pillar One and Pillar Two proposals.

Our BEPS 2.0 Model:

  • Allows users to evaluate the cash tax and effective tax rate impact of Pillar One and Pillar Two proposals for 1 to 10 years
  • Allows flexible modeling based on different tax rules, allocation keys, and other parameters of the evolving proposals
  • Is scalable for both initial assessments and in-depth modeling.
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KPMG PTEP Analyzer

KPMG PTEP Analyzer

Complex and evolving previously taxed earnings and profits (PTEP) rules have become the centerpiece of cross-border cash management and attribute-tracking. The KPMG PTEP Analyzer allows users to model distribution scenarios, seamlessly track PTEP, understand the potential tax implications, and facilitate decision-making.

Our PTEP Analyzer drives robust scenario planning and can be used to:

  • Run complex distribution ordering rules on PTEP layers and income categories
  • Take into account various withholding tax implications
  • Determine creditable foreign taxes attributable to PTEP
  • Calculate section 986(c) foreign currency exchange gains and losses
  • Track creditable PTEP balances.
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KPMG Section 987 Model

KPMG Section 987 Model

Section 987 gain/loss calculations and tracking are complicated and time-consuming. The KPMG Section 987 Model helps clients understand the potential impact of gain/loss transactions, supports efficient tax return preparation, and facilitates informed tax planning decisions.

Our Section 987 Model provides:

  • Equity and basis pool tracking
  • Section 987 gain/(loss) planning
  • Calculation methodology flexibility
  • Report analysis to determine the tax impact of specific contributions and remittances.

Features built from your needs

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Transparent Client Access

Transparent Client Access

By providing you with transparent, direct access to the models, we help you to see not just the outputs but the underlying tax logic—so you can use the models autonomously and review the calculations being employed.

Extensive and adaptive

Extensive and adaptive

Our models offer integrated and extensive international calculations that are updated frequently for the rapidly evolving rules and regulations both in the United States and internationally.

Powerful and accurate

Powerful and accurate

Sophisticated modeling capabilities with extensive, multi-year scenario planning abilities offer powerful and accurate visibility into your global tax scenario, risks, and opportunities.

Flexible and scalable

Flexible and scalable

Our “right-sized” adaptive modeling tools enable you to model any number of entity structure changes or financial statement adjustments as well as the impact of new legislative and regulatory developments in a flexible and scalable manner.

Multiple reporting options

Multiple reporting options

Our customizable reporting options include detailed reporting for audit/workpaper support, tax-compliance specific reports, and C-suite-ready high-impact outputs/visualizations.

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Dive into our thinking:

BEPS 2.0 Automation Technology

Modeling for the continuously evolving global tax landscape related to Pillar Two reforms

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International tax reform analyzer

Modeling the changing U.S. international tax legislative and regulatory landscape

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