Responding to the Shifting Dynamics in the Global Tax Environment
Article in Business Partners Magazine: From Effie Adamidou, Partner, Head of Tax and Legal, KPMG in Greece
Article in Business Partners Magazine: From Effie Adamidou, Partner, Head of Tax and Legal
Article Posted date
22 October 2025
2 min read
Global tax policy is undergoing unprecedented change, as jurisdictions seek to safeguard their tax revenues while remaining competitive for investment.
On the one hand, we face geopolitical instability, rapidly evolving highly complex tax laws at both local and international levels, emerging trade tariff challenges, and the implementation of global minimum tax rules.
On the other hand, we are seeing rapid technological change with growing digitalization, the ever expanding demanding financial reporting obligations, and heightened collaboration and sharing of information among tax authorities — factors that are fueling more and harder to resolve tax disputes.
Businesses need to be agile to these shifting dynamics and have processes in place that allow them to stay current with global tax developments, meet their compliance demands and proactively identify vulnerabilities and opportunities.
Businesses need to reassess their global footprint and supply chains and prepare for a wide range of scenarios involving fluctuating effective tax rates, the impact of tariffs, evolving investment incentives and complex tax disputes. This requires dynamic modeling and predictive capabilities to integrate data efficiently and clearly, to understand the impact and drive decisions to optimize tax outcomes across the supply chain.
To achieve this, businesses must modernize their tax operating models focusing on governance, process optimization, upskilled talent, and utilize advanced technologies including Generative AI. As tax authorities intensify their use of AI and analytics, businesses must ensure that their data quality and visibility matches or exceeds that of tax authorities, so as to stay compliant and mitigate audit risk.
Concluding, to respond to the shifting dynamics in the global tax environment, businesses should strengthen their compliance frameworks and enhance their data insights and their analytics capabilities to be able to manage risk and drive better decision-making and efficiency in their supply chains.
