Tax and finance executives around the world are facing an uncertain future, with the prospect of increased tariffs and the need for greater transparency. A recent survey by Deloitte has revealed that 82% of respondents expect increased public tax disclosures over the next two to three years, while 81% believe that national-level transparency laws are the most influential regulatory force they are facing. The survey, which polled 1,100 tax and finance executives from 28 countries, also found that the digitalization of tax is a top priority, but optimism about tax technology has waned. Only 29% of respondents believe that AI will enhance accuracy, and there are growing concerns that AI can introduce more complexity than simplification. On the other hand, AI-driven tax compliance software is expanding globally, and e-invoicing is becoming increasingly common. The rise of remote and cross-border work has also presented tax challenges, with approximately three-quarters of businesses expressing concerns about corporate tax risks, such as transfer pricing. Two-thirds of the respondents reported increased use of tax incentives to attract foreign talent, particularly in high-skilled industries. Sustainability has become a top priority for businesses, jumping from No. 5 to No. 3 in the report’s impact rankings year over year. The majority of respondents (55%) cited sustainability as a top priority within their business, and a 56% majority indicated that tax implications are incorporated within their current sustainability strategies. However, the cost of compliance is still a significant challenge, particularly in Africa, where respondents (45%) rate it as a major issue. While many of the respondents are still exploring different options to lower their costs, only about one-third of respondents (36%) are leveraging grants and incentives.
The Digitalization of Tax
The digitalization of tax is a top priority across the globe, but optimism about tax technology has waned in recent years. The Deloitte survey found that only 29% of respondents believe that AI will enhance accuracy, and there are growing concerns that AI can introduce more complexity than simplification. The survey also found that tax leaders are facing significant challenges in keeping up with the rapid pace of change in the tax environment.
- Only 29% of respondents believe that AI will enhance accuracy.
- There are growing concerns that AI can introduce more complexity than simplification.
- AI-driven tax compliance software is expanding globally.
- E-invoicing is becoming increasingly common.
Sustainability and Tax
Sustainability has become a top priority for businesses, jumping from No.
| Priority | Percentage of Respondents |
|---|---|
| Sustainability | 55% |
| Tax implications | 56% |
| Cost of compliance | 45% |
| Grants and incentives | 36% |
The survey also found that two-thirds of respondents reported increased use of tax incentives to attract foreign talent, particularly in high-skilled industries.
Uncertainty and Change
Tax and finance executives around the world are facing an uncertain future, with the prospect of increased tariffs and the need for greater transparency. The survey found that 82% of respondents expect increased public tax disclosures over the next two to three years, while 81% believe that national-level transparency laws are the most influential regulatory force they are facing. The survey also found that approximately three-quarters of businesses express concerns about corporate tax risks, such as transfer pricing. The survey highlights the need for tax leaders to collaborate across the organization to understand where they are, where they’re going, and how they can get there. As Amanda Tickel, Deloitte’s global leader of tax and legal policy, noted: “Keeping a pulse on such rapid change can be incredibly challenging. Tax leaders must collaborate across the organization to understand where they are, where they’re going, and how they can get there.”
“Keeping a pulse on such rapid change can be incredibly challenging. Tax leaders must collaborate across the organization to understand where they are, where they’re going, and how they can get there.” – Amanda Tickel, Deloitte’s global leader of tax and legal policy
The tax function is undergoing significant policy shifts with the added complexity of a fast-moving tariff environment.
The survey also found that 29% of respondents believe that AI will enhance accuracy, and there are growing concerns that AI can introduce more complexity than simplification. Key Takeaways:
- 82% of respondents expect increased public tax disclosures over the next two to three years.
- 81% believe that national-level transparency laws are the most influential regulatory force they are facing.
- 29% of respondents believe that AI will enhance accuracy.
- Only 36% of respondents are leveraging grants and incentives to lower their costs.
- AI-driven tax compliance software: Software that uses artificial intelligence to automate tax compliance tasks.
- E-invoicing: The electronic submission of invoices.
- Transfer pricing: The pricing of goods or services transferred between companies within a group.
- Grants and incentives: Financial assistance or rewards offered by governments to attract foreign talent or invest in certain industries.
The survey highlights the need for tax leaders to adapt to changing regulations and navigate uncertainty. By understanding the challenges and opportunities presented by these changes, tax executives can position their organizations for success in a rapidly evolving tax landscape.
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