Tax Management

Tax Management Market by Component (Services, Software), Tax Type (Direct Tax, Indirect Tax), Deployment, End-User, End-user Industry - Global Forecast 2024-2030

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[186 Pages Report] The Tax Management Market size was estimated at USD 24.05 billion in 2023 and expected to reach USD 26.37 billion in 2024, at a CAGR 10.05% to reach USD 47.04 billion by 2030.

Tax Management Market
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The primary goal of tax management is to reduce tax liability by making tax-efficient investments or claiming deductions for specific expenses under applicable income tax laws. Tax Management is concerned with the timely filing of returns, having accounts audited, deducting tax at source, and many more. Tax management aids in the avoidance of interest, penalties, and prosecution. The emerging digital financial transaction and automated compliance have enhanced the adoption of tax management across several industries. However, data security & privacy issues and limited knowledge about tax procedures may impede the development of the tax management market. Nevertheless, the integration of advanced technologies and the surging potential of indirect tax management can create enormous opportunities. Additionally, many players are integrating sustainability agendas in their tax services, which can expand the adoption of tax management solutions among eco-consciousness end-users.

Tax Management Market - Global Forecast 2024-2030
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Component: Ongoing advancements to improve the performance of tax management software

Tax responsibilities and planning are becoming more complex in an increasingly demanding global environment. Vendors provide various services to meet the business challenges of multi-jurisdictional tax operations, including reporting, compliance, and risk management for direct and indirect taxes, as well as consulting, technology, and outsourcing expertise. Tax management services can include consultation regarding technologies, prototyping or validating a business idea, end-to-end deployment of tax management, and also includes services to integrate tax management with other systems such as customer relationship management (CRM). Tax management software, on the other hand, assists financial institutions and businesses in analyzing the massive amount of data collected by monetary transactions and assisting companies in decision-making.

Tax Type: Need for tax management of indirect taxes to create a streamline tax system

A direct tax is paid directly to the entity imposed by a person or organization and cannot be passed on someone else. These include taxes such as income tax, corporate tax, estate tax, and property tax. The government collects these taxes directly from the individuals or organizations that are liable for them. Direct taxes are preferred when there is a need for a progressive tax structure, where the tax liability increases with an individual's ability to pay. This is based on the principle of equity in taxation. They are transparent and it is harder to evade paying them. Instead, indirect taxes are levied on the consumption of goods and services. Unlike direct taxes, they are collected by an intermediary (such as a retailer) from the person who bears the ultimate economic burden of the tax (such as the consumer). Common examples include Value-Added Tax (VAT), sales tax, customs duty, and excise tax. These are preferred when the objective is to use the tax system to influence consumer behavior or to tax consumption rather than income. It is an effective way to collect taxes from a wide base and is somewhat hidden from consumers, as it is included in the price of goods and services.

Deployment: Growing demand for on-cloud deployment of tax management services due to its cost-effectiveness and scalability

On-premises tax software deployment allows organizations and financial firms to gain control over their integration and provides numerous benefits, such as scalability, functionality, and high data security. On the other hand, on-cloud tax software solutions eliminate the burden of system administration and maintenance, allowing management to focus on value-added activities. On-cloud deployment significantly reduces costs while providing better service, agility, and security.

End-User: Need for tax management for large enterprises due to the large volume of financial transactions

Tax management market is categorized into large enterprises, midsize enterprises, and small businesses & individuals based on the end user type. The large enterprise sector covers the significant spectrum of the tax management market due to rising digital transformation and the adoption of ubiquitous tax management solutions. The growing number of large enterprises has raised the need for tax solutions for regular compliance checks and tax management. Additionally, midsize and small businesses are inclined toward tax management solutions to avoid the last-minute hassles of tax filing and financial transactions.

End-user Industry: Initiatives and incentives to promote financial sustainability in BFSI sector

In the banking, financial Services, and insurance(BFSI) sector, tax management plays a critical role in ensuring compliance with the regulatory framework, risk management, and optimizing returns for stakeholders. Financial entities require sophisticated solutions to navigate complex domestic and international tax laws. The energy & utility sector faces unique tax challenges, including dealing with tax incentives for sustainable energy and managing taxation in a heavily regulated industry. The sector prefers tax solutions that aid in leveraging rebates, credits, and incentives while maintaining compliance with environmental regulations. Tax management in the healthcare industry requires careful consideration of the implications of tax regulations on healthcare services, product pricing, and R&D investments. Manufacturers require tax management solutions that can handle multi-jurisdictional tax landscapes and the intricate tax issues relating to import/export activities and supply chains. The media & entertainment industry faces the challenge of managing intellectual property rights, royalties, and digital services taxation. Retail & e-Commerce businesses face an increasingly dynamic tax environment with the rise of online shopping and cross-border transactions. Tax management priorities include sales tax collection and multi-state tax compliance. The telecommunications and IT industry contends with rapid technological changes and complex tax rules regarding digital services and international telecom operations.

Regional Insights

The Americas region, particularly U.S. and Canada is characterized by the significant adoption of digital technologies on an industrial scale. The presence of multiple players, and a developed and complex taxation system, which have encouraged the utilization of tax management solutions in the region. Similarly, the EMEA region has also covered a significant spectrum of the market owing to stringent regulatory norms and constant technology development in financial services. Several European software vendors have initiated collaborating with third-party developers to create API-based software to streamline the tax system, creating lucrative growth opportunities. Furthermore, growing adoption of software-based tax systems, combined with rising digitalization in the Asia-Pacific region, is expected to boost economic growth, propelling market growth in this region. Adoption of tax management solutions in the APAC region is driven by the need for cost-effective and reliable tax services.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Tax Management Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Tax Management Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments
  • Global Tax Management Introduces GTM Engage, Providing Professional Services Firms with Access to Tax Services for Their Clients

    Global Tax Management (GTM), has introduced GTM Engage, an innovative program tailored for professional firms eager to amplify their tax service offerings. GTM Engage, featuring three dynamic tiers, unlocks comprehensive access to GTM's extensive service repertoire, specifies dedicated consulting hours, dispenses tax education alongside Continuing Professional Education (CPE) credits, and ensures ceaseless backup for new tax-related business endeavors. [Published On: 2023-03-30]

  • FTA Collaborates with Software Company SAP to Support Digital Transformation Efforts

    The Federal Tax Authority (FTA) has taken a significant step towards technological innovation by entering into a strategic partnership with leading enterprise software provider SAP SE. Integral to its ambitious strategy, the FTA endeavors to redefine the paradigm of tax administration, fostering a proactive culture through forward-thinking and adaptive planning. [Published On: 2023-03-01]

  • Thomson Reuters Completes Acquisition of SurePrep, LLC

    Thomson Reuters Corporation has completed the acquisition of SurePrep, LLC, a forefront provider of 1040 tax automation software based in the U.S. to enhance productivity and profitability in the tax management sector. The integration of SurePrep's consumer-centric, mobile-friendly applications, such as 1040SCAN, SPbinder, and TaxCaddy, utilized by an extensive user base of upwards of 23,000 tax professionals, bolsters Thomson Reuters' commitment to innovation. [Published On: 2023-01-03]

Key Company Profiles

The report delves into recent significant developments in the Tax Management Market, highlighting leading vendors and their innovative profiles. These include A. Dowl Knight & Company, PC, ADP, Inc., Aldrich Services LLP, Anrok, Inc., Asure Software, Inc., Avalara, Inc., Avantax, Inc., BDO USA, LLP, Canopy Tax, Inc., CPB Software AG, Crowe LLP, Drake Software, LLC, ECOVIS Webservice GmbH, Ernst & Young Global Limited, FastSpring, Global Tax Management, Inc., GlobalLogic, Inc. by Hitachi Ltd., Grant Thornton LLP by Guidehouse, HRB Digital LLC, Insightsoftware by GS Topco GP, LLC, Intuit, Inc., Jackson Hewitt Tax Service Inc., JPMorgan Chase & Co., KPMG International Limited, Lovat Compliance LTD, Paddle, PricewaterhouseCoopers LLP, Quaderno, Rehmann, LLC, RSM International Ltd., Ryan, LLC, SafeSend by cPaperless, LLC, Sage Group PLC, SAP SE, SAXTAX, Shield Products Limited, Sovos Compliance, LLC, Stripe, Inc., Tax Management Associates, Inc., Taxback International, TaxCloud by The Federal Tax Authority, LLC, TaxSlayer LLC, Thomson Reuters Corporation, Vertex, Inc., Washington Accounting Services Inc., Webgility, Wolters Kluwer N.V., WTS Global, and Xero Limited.

Market Segmentation & Coverage

This research report categorizes the Tax Management Market to forecast the revenues and analyze trends in each of the following sub-markets:

  • Component
    • Services
    • Software
  • Tax Type
    • Direct Tax
    • Indirect Tax
  • Deployment
    • On-Cloud
    • On-Premises
  • End-User
    • Large Enterprise
    • Midsize Enterprise
    • Small Business & Individuals
  • End-user Industry
    • BFSI
    • Energy & Utility
    • Healthcare
    • Manufacturing
    • Media & Entertainment
    • Retail & e-Commerce
    • Telecommunication & IT

  • Region
    • Americas
      • Argentina
      • Brazil
      • Canada
      • Mexico
      • United States
        • California
        • Florida
        • Illinois
        • New York
        • Ohio
        • Pennsylvania
        • Texas
    • Asia-Pacific
      • Australia
      • China
      • India
      • Indonesia
      • Japan
      • Malaysia
      • Philippines
      • Singapore
      • South Korea
      • Taiwan
      • Thailand
      • Vietnam
    • Europe, Middle East & Africa
      • Denmark
      • Egypt
      • Finland
      • France
      • Germany
      • Israel
      • Italy
      • Netherlands
      • Nigeria
      • Norway
      • Poland
      • Qatar
      • Russia
      • Saudi Arabia
      • South Africa
      • Spain
      • Sweden
      • Switzerland
      • Turkey
      • United Arab Emirates
      • United Kingdom

The report offers valuable insights on the following aspects:

  1. Market Penetration: It presents comprehensive information on the market provided by key players.
  2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.
  3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.
  4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.
  5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

  1. What is the market size and forecast of the Tax Management Market?
  2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Tax Management Market?
  3. What are the technology trends and regulatory frameworks in the Tax Management Market?
  4. What is the market share of the leading vendors in the Tax Management Market?
  5. Which modes and strategic moves are suitable for entering the Tax Management Market?

Table of Contents
  1. Preface
  2. Research Methodology
  3. Executive Summary
  4. Market Overview
  5. Market Insights
  6. Tax Management Market, by Component
  7. Tax Management Market, by Tax Type
  8. Tax Management Market, by Deployment
  9. Tax Management Market, by End-User
  10. Tax Management Market, by End-user Industry
  11. Americas Tax Management Market
  12. Asia-Pacific Tax Management Market
  13. Europe, Middle East & Africa Tax Management Market
  14. Competitive Landscape
  15. Competitive Portfolio
  16. List of Figures [Total: 26]
  17. List of Tables [Total: 468]
  18. List of Companies Mentioned [Total: 49]
The Potential Penetration Area for Indirect Tax Management
June 20, 2023
BLOG
The Potential Penetration Area for Indirect Tax Management
Taxes are an essential aspect of every business activity, and it can be a complex and challenging area to manage, especially with indirect taxes. Indirect taxes have become increasingly complex due to varying regulations, exemptions, and compliances from state to state and country to country. Therefore, market players need to incorporate indirect tax management solutions to address the challenges associated with indirect tax operations. In this blog, we take a closer look at the potential penetration area for indirect tax management solutions.

Government Compliance:

With the government constantly changing tax regulations and compliance requirements, indirect tax management solutions can give companies the necessary tools to keep up with these changes. Automated software can help with accurate compliance reporting, as well as help companies calculate their tax liability for specific products, services, and tax jurisdictions.

Cross-border Transactions:

Companies that operate across borders must deal with multiple tax jurisdictions, leading to complex accounting and compliance issues. Indirect tax management solutions can simplify the complexities of cross-border transactions by providing real-time tax calculation, which will help companies optimize their tax spending.

Integration with ERP Systems:

Integrating indirect tax management into ERP systems will help companies automate their tax processes with accurate calculations in real-time. Companies can be more agile with their tax payments and have more control over their tax liabilities.

Improved Invoice Accuracy:

Manually calculating indirect taxes can lead to errors and discrepancies in invoices. Indirect tax management solutions can automate and standardize tax calculations, thus removing the onus on individuals to calculate indirect taxes. This can significantly reduce the errors in invoices and improve accuracy.

Streamlined Audit Process:

Companies can be subject to tax audits that can be stressful and time-consuming. Indirect tax management solutions can help streamline the audit process by providing all the relevant tax information in a centralized repository. This will save time, and auditors can easily audit the data for compliance with tax regulations.

Indirect tax management solutions are the need of the hour as businesses continue to expand and operate in multiple tax jurisdictions. Indirect tax management solutions have the potential to impact many areas of a business positively, from government compliance and cross-border transactions to invoice accuracy and the streamlining of the audit process. These solutions will help companies manage indirect taxes efficiently and accurately, ultimately improving profitability and compliance.

Frequently Asked Questions
  1. How big is the Tax Management Market?
    Ans. The Global Tax Management Market size was estimated at USD 24.05 billion in 2023 and expected to reach USD 26.37 billion in 2024.
  2. What is the Tax Management Market growth?
    Ans. The Global Tax Management Market to grow USD 47.04 billion by 2030, at a CAGR of 10.05%
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