Global Tax Outlook 2025 - Reimagining tax compliance

The Global Tax Outlook 2025 report, produced by BDO's international network, is being published amid a significant transformation in the world of taxation. The report examines the forces shaping the future of tax regulation and strategy. As regulations become more complex, costs rise, and artificial intelligence revolutionizes tax functions, tax decision-makers are required to think in new ways. Managing tax obligations is no longer just a routine task—it has become a strategic driver of success. 

The report is based on the views of 500 tax leaders from various industries, such as energy, healthcare, manufacturing, and professional services. Global Tax Outlook explains how tax decision-makers are responding to growing pressures and seizing new opportunities. Key findings include:

• Regulatory pressure is escalating

Regulatory pressure is straining resources and elevating risk, with 81% of businesses reporting spending more time responding to tax authority queries than in 2023. Respondents cite the complexity of global tax frameworks and increases in digital mandates as factors as driving heavier workloads and increasing risk exposure.

• AI is moving beyond automation

AI is evolving from task automation to strategic enablement, altering how tax departments operate and deliver value. While most respondents expect improvements in the accuracy of AI in the short term, fewer anticipate immediate improvements in strategic impact or compliance quality.

• Hybrid outsourcing is becoming standard

Nearly half of respondents are increasing investment in outsourced solutions that blend internal expertise with external support, particularly for corporate and VAT compliance. This flexible model demands agility and a readiness to pivot as needs evolve, with many anticipating further shifts towards outsourcing.

• Future-ready comopliance is strategic

With 66% of businesses expecting compliance costs to rise, resilience, adaptability and integration with broader business strategy are essential. Harnessing technology is crucial to compliance—with tax authorities increasingly using technology to facilitate easier and quicker disclosures that can expose errors, businesses should invest in robust and integrated data strategies that are linked to compliance and foster stronger collaboration with the tax authorities.

A more strategic approach determines competitiveness

The report highlights a clear shift. Tax decision-makers must act decisively, embrace innovation, invest in technology, and closely align their tax strategy with corporate objectives in order to keep pace with a rapidly changing environment.

"The findings of the report are also clearly visible in Finland. Rapid developments in the regulatory environment and digitalization are challenging Finnish companies to make their tax processes more strategic. Combining local expertise with international solutions and leveraging technology are key to maintaining competitiveness. It is also important for companies to build strong partnerships with tax authorities so that they can successfully meet future requirements."

Johanna Kannisto, Partner, Head of Tax and Legal Services

 

Download the 2025 report by submitting your contact details!