Global vs Domicile Tax Automation
Summary:
Global vs Domicile Tax Automation Setup
Content (please ensure you mask any confidential information):
I know that the suggested practice is to create Global Automation rules and let them cascade down to Domicile. However, as we continue to look at streamlining our worldwide provisioning process, we are wondering if there would be any undesirable impacts from just ditching global rules (currently our predominant setup) and transitioning current rules and creating new rules all at the domicile level moving forward. Would this impact any tax forms or calculations?
The reason for this is that almost all jurisdictions have different tax requirements from various standpoints such as accounts used and deductibility percentages for certain categories like Meals & Entertainment etc. Rather than have 150+ rules at Global that mean virtually nothing to most of our non-US entities, it seems like maintenance would be much easier if we move to managing all rules at Domicile.