Tax and finance executives around the world are confronting the prospect of increased tariffs and trying to adjust their plans accordingly.
Many are anticipating the need for greater tax disclosures, according to a new survey by Deloitte of 1,100 tax and finance executives from 28 countries. The
"As they grapple with widespread uncertainty, global organizations are focusing on what they can control as the tax function undergoes significant policy shifts with the added complexity of a fast-moving tariff environment," said Amanda Tickel, Deloitte's global leader of tax and legal policy, in a statement Wednesday. "Keeping a pulse on such rapid change can be incredibly challenging. Tax leaders must collaborate across the organization to understand where they are, where they're going, and how they can get there."
The digitalization of tax is a top priority across the globe, but optimism about tax technology has waned year over year, with only 29% of respondents believing AI will enhance accuracy. There are growing concerns that AI can introduce more complexity than simplification, although AI-driven tax compliance software keeps expanding globally. Other concerns have arisen over the costs of e-invoicing.
The increase in remote and cross-border work also presents tax challenges, with approximately three-quarters of businesses expressing concerns about corporate tax risks, such as transfer pricing. Two-thirds of the respondents reported increased use of tax incentives to attract foreign talent, particularly in high-skilled industries.
Sustainability has become a top priority for businesses, jumping from No. 5 to No. 3 in the report's impact rankings year over year. That includes reporting requirements, new and emerging taxes, and corporate sustainability initiatives. The majority of respondents (55%) cited sustainability as a top priority within their business. A 56% majority of respondents indicated tax implications are incorporated within their current sustainability strategies. But the cost of compliance is still a significant challenge, particularly in Africa, where respondents (45%) rate it as a major issue. While many of the respondents are still exploring different options to lower their costs, only about one-third of respondents (36%) are leveraging grants and incentives.
