How does your tax function stack up?
Seasoned tax leaders in the healthcare and life sciences sector make key decisions every day to evolve their tax function and keep pace with evolving pressures, disruptive technological advancements, heightened compliance obligations and more — all while seeking to demonstrate value within the organization and beyond.
Benchmarking against comparable healthcare and life sciences tax functions can be a powerful tool for reflecting on your organization's current position and planning how to prepare for the future. To help, KPMG International conducts an ongoing survey of the tax functions in multinational organizations around the world. The data gained offers insights into tax functions globally and how they are evolving in their structure, governance, priorities and performance measures, through the use of technology and more.
In this at-a-glance summary, we provide a look at some of the key findings relating to tax function structure and resourcing, transformation, technology and data, and ESG from survey respondents in the healthcare and life sciences sector.
Healthcare institutions and its needs are continuously evolving. Changes and challenges in regulations and particular Tax Law, human resources and a corresponding need for digitalization are the market forces that institutions in the healthcare and life sciences sector are faced with on a regular basis. The sectors’ need for specialized tax functions, whether inhouse or outsourced, is expected to continue to increase. As is the case for tax transformation through technology – to improve available data, manage legislative changes and save costs. This will in turn regularly be the basis for developing, updating, and implementing a sound tax strategy and policy as one part of the tax functions’ role in ESG, which will continue to grow in importance for healthcare and tax administration as well.
Some of the biggest issues today and in the coming years for the healthcare and life sciences sector include the provision of early advice on current policy developments – domestic or internationally – the provision of tax function resources, support in their technological transformation, and management of tax risks. However, solutions will need to consider the particularities of each unique organization and will may include issues such as partnerships, tax exemptions and digitalization in the healthcare sector including tax functions. Related issues such as financing through funding, grants and subsidies (national government and EU funds) are of increasing importance, particularly with regard to research and often with a range of potential tax implications – many of which are constantly evolving (e.g., documented use of funds in the case of healthcare).
PD Dr. Thorsten Helm
Global Tax lead, Infrastructure, Government and Healthcare, KPMG International; Tax Partner, Public Sector, KPMG in Germany
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