Deloitte Report on Global Tax Insights

A recent report based on the Global Tax Policy Survey, which gathered insights from over 1,000 organizations, reveals evolving priorities in the international tax landscape. While international tax reform remains a central theme, its dominance appears to be waning. The survey indicates that businesses are increasingly focused on adapting to new challenges, particularly those arising from the implementation of Pillar Two, which aims to address global tax disparities. The report emphasizes the growing influence of climate change and sustainability policies on tax reporting requirements. Initiatives like the EU’s Corporate Sustainability Reporting Directive are expected to introduce additional obligations for tax functions. As public country-by-country reporting becomes more prevalent, organizations recognize the importance of exceeding basic disclosure requirements to provide context for stakeholders, thereby enhancing their tax transparency strategies. Despite the majority of businesses claiming to have strategies in place to manage reporting burdens, they face significant challenges in execution. The report suggests that collaboration with tax authorities will be crucial in leveraging the benefits of digitalization and artificial intelligence to streamline processes. However, opinions remain divided on whether Pillar Two will ultimately simplify or complicate corporate tax structures. The survey also highlights the implications of international remote working and the need for tax simplification, as seen in India's upcoming budget. As businesses navigate these complexities, the focus on effective tax policy adaptation and strategic planning will be essential for future success.