Tax Accounting
More than just publishing tax figures
Tax Accounting is the central data source within corporations
Trinity Tax provides corporate groups not only with numbers for publication but also with comprehensive advisory services for all central compliance processes because smart data generation starts during year-end.
With years of experience in preparing and auditing DAX-listed companies, we provide extensive expertise.
Our Core Services
Tax Accounting Processes
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Comprehensive process consulting to ensure that data collection during the closing process forms the foundation for all subsequent steps
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Optimisation of tax reporting through materiality considerations
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Tax optimisation by identifying improvement opportunities (e.g., withholding tax, loss utilisation)
Group Financials under local GAAP / IAS 12
Preparation and support for domestic and international tax reporting
Tax evaluation of consolidation entries and centrally recorded adjustments
Compilation and validation of tax figures for notes disclosure
Advisory and calculation of central data points, including Pillar 2
- Deferred Taxes: Determination and Measurement under HGB and IAS 12
Automation & Digitalisation
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Advisory on software solutions considering existing IT infrastructure and processes
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Development of custom solutions in SAP S/4HANA
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Enhancement of existing tools for improved efficiency and accuracy
Frequently Asked Questions
What does Tax Accounting mean?
Tax accounting (at group level) generally comprises several layers. The first layer is the calculation of current and deferred taxes at the individual legal entity level. Subsequently, consolidation effects as well as centrally recorded transactions must be assessed from a tax perspective. The final step involves validating the data and presenting it in the notes to the consolidated financial statements.
Especially in large group structures, one of the main challenges is maintaining an overview of all material tax data and ensuring it is accurately reflected.
Why is Tax Accounting so important for MNEs?
We do not view tax accounting as a standalone process within corporate groups. Rather, tax accounting represents the annual starting point for data and process design in group structures and forms the foundation for all compliance processes. Accordingly, the processes applied in the annual financial statements should already take into account – and help prepare for – the subsequent requirements of tax compliance.
In our experience, most MNEs unfortunately do not recognize this dependency, thereby causing significant additional effort for the respective organization.
How can I influence the effective tax rate for the Group?
The Group´s effective tax rate provides insight into both current and future taxation. Key drivers of the effective tax rate include, among others, impairments of deferred taxes, tax risks and withholding tax exposures.
An effective tax rate can be improved through the optimization of the group structure and transfer pricing, as this helps avoid unnecessary double taxation or cross-border taxation of profits and intercompany transactions. Another lever is the use of accounting policy choices available under the applicable accounting standard, which we would be happy to explain and support you with in an advisory capacity.
Why is the tax rate reconciliation often a big challenge to Corporations?
Many MNEs place their focus on the tax rate reconciliation too late when calculating current and deferred taxes. The tax reconciliation is the core of tax accounting, and only those who master and understand it, truly know and understand their corporate group. Any good auditor will immediately ask for the tax rate reconciliation or challenge it. We support you already at the process design stage to ensure that the tax reconciliation is correctly and immediately available at every level.