Key findings from the KPMG Private Enterprise Global Family Business Tax Monitor 2023
For many family businesses, sustaining prosperity for the long run depends on how well they plan transfers of business assets and family wealth from one generation to the next. In this edition of Privately Speaking, we explore the key findings from the KPMG Private Enterprise Global Family Business Tax Monitor 2023 to uncover the key trends influencing business families over the coming years.
The long-run impacts of the pandemic are lingering. Geopolitical tensions are running high. Threats of a recession loom. And technology is opening opportunities for new business models and ways of doing business. In this environment, many family businesses are reconsidering the implications of a family business transfer.
As business families look ahead to determine their best approach to succession, a host of personal, legal and business issues come into play—tax being one of the most important factors influencing how and when the business should be passed on to the next generation.
“No matter where in the world your family and assets are located, early, ongoing, and thorough planning and preparation are critical factors that can contribute to the continued success of a family business. This means considering all the potential risks and angles before the plan is executed to avoid potential missteps, pitfalls, or regrets.”
- Conor Moore, National Leader, KPMG Private Enterprise
Thirty-three of the 50 US states do not have estate or inheritance taxes, and residents are generally subject to federal tax only. Some low-tax states also impose low levels of estate and/or inheritance tax.
KPMG Private Enterprise advisers have identified three emerging trends that business families should consider as they develop their long-term plans for their businesses and their wealth.
Branching out: More business families and their assets are going global
Building up: Governance is gaining priority
Giving Back: Philanthropic activities are drawing more attention
“Whether it’s a family office, family governance council, family board, or other structure, of primary importance is that the family as a whole is setting the direction for its investments and operating companies in line with their values and preparing the next generation to take responsibility.”
- Brad Sprong, National Tax Leader, KPMG Private Enterprise
Compare the tax implications around the globe. The KPMG Private Enterprise Global Family Business Tax Monitor 2023 compares the vastly different tax implications of transferring the family business through gifting during the owners’ lifetime (including on retirement) and through inheritance across 57 countries, territories, and jurisdictions worldwide. Check out the comparisons here.
Individuals may be entitled to federal and state exemptions for transfers on death.
Find out more. The KPMG Private Enterprise Global Family Business Tax Monitor 2023 highlights many of the biggest risks and priorities driving succession, investment, and business planning for business families in 2023 and the years to come. Get the full report here.
When tax performance is put under a microscope, you need precise knowledge and the latest facts. When you're called on for a bigger role, you need insightful, forward-thinking perspectives. In times with greater demands for transparency, you need a steady, trusted hand.
Passionate, collaborative, and committed to your business success, the KPMG Tax practice works with you to learn all we can about your organization, understand your goals, and uncover unexpected opportunities. We deliver a broad range of tax services, reimagined now and for the future.
KPMG Private Enterprise professionals understand the opportunities, challenges and complexities facing you and your privately held business. And our talent in local offices is available to assist clients with the full range of needed tax services including multidisciplinary tax planning, compliance and tax technology tools.
From our Tax Planning and Business Strategy practices through to our Resilience and Change Management practices through to our M&A and Restructuring Groups, KPMG Private Enterprise delivers a full range of services to help private organizations thrive in the current environment.