Navigating the forces of change in tax

In an era marked by geopolitical uncertainty, evolving regulations and rapid technological advancements, tax leaders face unprecedented challenges.

The global tax landscape is more dynamic than ever, with jurisdictions implementing measures to protect their tax bases and incentivize climate-friendly investments. Additionally, the rise of generative AI (Gen AI) and the shortage of tax talent are reshaping traditional tax roles and operating models, putting significant stress on tax functions.

Navigating the forces of change in tax explores these complexities, offering strategic imperatives and actionable insights to help tax leaders navigate the forces of change.

The publication highlights three key areas tax leaders should prioritize to create value for their organizations and outlines key steps to help achieve these goals and gain a competitive advantage.

Key themes

With the growing demand for skills in emerging technologies, tax leaders must focus on building agile teams equipped to handle the complexities of modern tax environments. The KPMG Global Tax Function Benchmarking Survey reveals that 44 percent of respondents identify employee recruitment and retention as the biggest disruptor impacting the corporate tax function.

Key actions to help transform the tax function for the future

Despite these challenges, there are significant opportunities for organizations to transform their operating models and enhance their strategic role within the business. By evolving in tandem with other business functions, tax teams can deliver greater value and position themselves for success in an unpredictable future. Some steps to consider when building a tax function ready for the future include:

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Reappraising the operating model

Redesigning the target operating model with a focus on governance, process optimization, people capabilities, service delivery models, technology enhancements, and performance insights.

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Developing a business case and managing stakeholders effectively

Creating objectives and key results (OKRs) to measure and communicate the success of transformation efforts.

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Refining tax governance

Implementing responsible tax policies that align with ESG (environmental, social, and governance) principles to enhance company reputation and help reduce audit risks.

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