Tax Enterprise Services
Turning your ERP system into a game changing tax function
Optimizing your ERP migration
Your ERP system acts as the central nervous system of your organization, seamlessly connecting various functions such as financial transactions, supply chain management, HR, and sales control. With the tax department being one of the largest consumers of data within an organization, it plays a vital role in ensuring the functionality and efficiency of the ERP system. By incorporating tax aspects into the planning and implementation process from the beginning, you can maximize the return on investment (ROI) for your ERP upgrade or migration.
KPMG Tax Enterprise Services takes a holistic approach to your tax target operating model, considering all tax areas impacted by ongoing finance transformations and ERP migrations.
Countdown to 2027
SAP, a leading ERP solutions provider, is phasing out support for their legacy platform by 2027, prompting companies to migrate to either the cloud-based solution, SAP S/4HANA, or an alternative ERP platform. Regardless of the platform chosen, integrating tax requirements from the start of the migration is critical to ensure automation, data quality, control, and efficiency.
Creating enterprise value from SAP S/4HANA tax transformation
Broad tax transformation requires a dedicated tax integration team that bridges the gap between tax and the system integrator (SI). We specialize in defining and implementing tax-sensitized ERP systems and tax-efficient operating models. By involving tax and other business stakeholders early in the ERP implementation process, we can generate enterprise-wide value and cash tax savings that may offset the implementation cost.
Enterprise Risk
New tax laws and regulatory requirements are elevating enterprise risk, which is further compounded by manual processes and the lack of tax data in legacy ERP systems.
Tax Data
ERP transformation provides a significant opportunity to enhance tax data, leading to downstream process efficiencies, better alignment between tax and key business partners, and operational cost reductions.
Tax Credits and Incentives
Many jurisdictions offer R&D tax credits and incentives to encourage companies to invest in technology initiatives, such as ERP upgrade programs.
Tax Planning
Proper integration of tax considerations within the ERP allows the tax function to identify and implement tax-planning strategies, improving the effective tax rate and after-tax cash flows.
Building a comprehensive tax roadmap for your ERP migration
Indirect Tax
Automate indirect tax requirements, including integrations to third-party tax engines, through various ERP options.
Transfer Pricing
Segment legal entity P&Ls by product, trading partner, or business functions.
Direct Taxes and Fixed Assets
Enhance efficiency in direct tax compliance and reporting processes through a tax-integrated ERP and EPM design.
Withholding Tax
Automate the calculation of withholding tax at the transaction level to reduce operational overhead and avoid liability for under withholding.
Trade and Customs
Automate the trade compliance process to mitigate compliance risk, penalties, and fines.
R&D and Other Credits
Claim R&D tax credits, state incentives, and credits for ERP implementations.
Value Chain Management
Improve after-tax cash flows to gain incremental funding for the ERP implementation.
Global Mandates
Assess the effects of CAMT, BEPS 2.0 Pillar 2, PCbCR, FASB, and more through enhanced tax sensitization.
Global Mobility
Assess and adapt mobility processes to optimize the system and related mobility workstreams.
Accelerating SAP tax value drivers
Including Tax upfront in your SAP implementation has important implications for your entire business, including the cash tax savings you can use to help fund your transformation.
Benefit from our collaboration with leading alliance partners
With our strategic alliances with industry leaders like SAP and IBM, we are committed to driving innovation and excellence in your finance transformation and ERP migration journey.
What sets us apart
Unlock the full potential of your ERP Migration with KPMG Tax Enterprise Services
TES can help clients understand and demonstrate their status as key stakeholders in the implementation journey, clarifying the risks and opportunities presented by an ERP migration, and helping to ensure that the transformation aligns with business objectives and broader organizational goals.
Dive into our thinking:
Tax Enterprises Services
Download PDFMeet our team
Our team of professionals will guide you in designing and implementing an optimized tax operating model that generates business value while managing tax data, reputation, and compliance risk.
