The departments that manage the taxes are under the pressure of fulfilling more and more sophisticated compliance obligations, more than half of the organizations around the world saying that they are not prepared to manage the complexity of the tax regulations.
Companies are not ready to manage the complexity of tax regulations
Less than half (43%) of the organizations are considered to be prepared to cope with the new tax regulatory obligations, shows the Global Reframing Tax Survey 2025 survey, conducted by PWC globally. Moreover, 95% admit that they have employee deficit with skills in the field of specialized tax expertise, artificial intelligence and data analysis.
“The departments that manage the taxes are under the pressure of fulfilling more sophisticated compliance obligations. Therefore, they need more resources and complex skills to analyze a growing data volume in order to support reinventing in their organizations and aligning the fiscal strategy with the commercial objectives of the companies. In many organizations, the way in which taxation is seen as a cost and compliance center is no longer an adequate approach in the current context. In addition to managing regulations, companies must invest in technology and development of tax team skills in order to perform their strategic role in business development ”said Ruxandra Târlescu, partner and leader of the Tax and Legal Consulting Department.
The survey also finds that only 32% of organizations invest in developing employees' skills and only 29% hire new talents to cover these gaps, while collaborating with external consultants is the preferred solution by many organizations. Thus, 80% of respondents plan to outsource at least some of the tax activities over the next three years. The main reasons include access to skills in technology, data analysis and ESG compliance, as well as the ability to keep the rhythm with regulatory changes.
Almost half (47%) of the companies participating in the poll state that improving the quality of data is a priority for the next three years, and similar percentages state that the fiscal function will have to become more proactive (43%) and to improve in data analysis (42%). However, when asked what are the greatest potential benefits of transforming the fiscal function, most responses are the reduction of costs and increasing efficiency, more effective fiscal planning and strategy being in third place.
As GENAI and automation gain land, 56% of companies are already reporting concrete benefits, and over 80% expect GENAI to prepare the planning and fiscal strategy over the next three years.
Optimism among accountants decreases, globally
On the other hand, the level of confidence among accountants around the world dropped again in early 2025, although the decrease was much less accentuated than in T4 2024, according to Global Economic Conditions (GECS) of T1 2025.
The study conducted by ACCA (Association of Authorized Accountants) and IMA® (Institute of Management Accountants) suggests that trust remains at the lowest registered level in T2 2020. The survey among the accountants took place between the end of February and the middle of March, being completed before the major announcements made by the US, related to the empty rates, which increased the EMPORT ECONOM,
The confidence has diminished significantly on the North American continent, against the background of a huge decrease in the US. The confidence among US accountants is at the second lowest level ever registered, the comments of respondents in the survey suggesting that US trade policies were the key factor that influenced this mood, along with reducing government spending. The expectations regarding any increases of the latter have dropped abruptly in the last quarters. In addition, indications of capital and employment expenses have decreased and are at very low levels, compared to other periods in which this study was made. A more encouraging aspect, the New Orders Index index index has increased again and is not well below its historical average.
In other areas, there have been slight increases in confidence: in Asia Pacific and Western Europe, after steep decreases in previous quarters, despite the increasing risk generated by the US import rates. Meanwhile, cost pressures have increased globally – are high in Western Europe and have increased quite in North America.
“Global growth has generally proved quite consistent in the last quarters. However, the lower confidence, the higher the risk of developing a negative cycle that will be self-perpetuated, firms reducing orders, capital expenses and employment. Unfortunately, with the significant intensification of global commercial tensions subsequent to the completion of the survey, the risks of decrease for the global economy have increased significantly“Said Jonathan Ashworth, an economist Acca.
The economy remained the highest global risk identified by the accountants in the first quarter, but the answers varied according to the sectors. Cyber security was in the first place for financial services, together with the personnel deficit, for the public and non-profit sect. The corporate sector ranked economic problems in the first place, and geopolitical instability in second place, at a small difference. The geopolitical risks were ranked second, as a whole-the first time they are above the third position-especially the US respondents commenting on the implications of new policy and rates.
