Tax Management Global Market Report 2024

Tax management involves the strategic handling of finances to fulfill tax obligations and ensure compliance with the provisions of the Income Tax Act and related rules. This encompasses activities such as timely filing of tax returns, conducting audits, and adhering to tax deduction requirements.

The primary components of tax management include software and services. Tax management software is utilized to calculate, process, and report global taxes in accordance with regulations. This software serves as a comprehensive solution, aiding bookkeepers, accounting firms, and certified public accountants (CPAs) in managing various financial workflows, including invoices, payments, electronic signatures, emails, contacts, and other data on a unified platform. Tax management solutions are deployed on both cloud and on-premises platforms, catering to the needs of small and medium-sized enterprises (SMEs) as well as large enterprises. These solutions find application across various industries, including banking, financial services, and insurance (BFSI), information technology (IT) and telecom, manufacturing, energy and utilities, retail, healthcare and life sciences, media and entertainment, and others.

The tax management market research report is one of a series of new reports from The Business Research Company that provides tax management market statistics, including tax management industry global market size, regional shares, competitors with a tax management market share, detailed tax management market segments, market trends and opportunities, and any further data you may need to thrive in the tax management industry. This tax management market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The tax management market size has grown rapidly in recent years. It will grow from $20.89 billion in 2023 to $23.48 billion in 2024 at a compound annual growth rate (CAGR) of 12.4%. The expansion observed in the historical period can be attributed to several factors, including strong economic growth in emerging markets, an increase in disposable income, the growing complexity of tax codes, and the rise in digital financial transactions.

The tax management market size is expected to see rapid growth in the next few years. It will grow to $37.11 billion in 2028 at a compound annual growth rate (CAGR) of 12.1%. Forecasted growth is fueled by government support, urbanization, population increase, and the adoption of digital and cloud-based approaches. Key trends include investments in artificial intelligence, digital business solutions, innovative technologies, cloud-based tax return solutions for workflow improvement, and the development of client self-service platforms.

The growth of the tax management market has been greatly influenced by the escalating complexity of tax codes across various countries. Tax management is crucial in ensuring compliance with these intricate tax laws, demanding constant updates and a deep understanding of diverse provisions to ensure organizational adherence. The National Taxpayers Union Foundation's report highlighted the increasing burden of tax code complexity. In 2022, compliance with tax codes consumed an estimated 6.55 billion hours for tasks such as recordkeeping, learning about laws, filling forms, and submitting information to the IRS. The cost of compliance in 2022 amounted to $364 billion, marking a $25 billion increase (7.4 percent) from the previous year. Thus, the mounting complexity of tax codes is poised to fuel the demand for tax management products and services.

The adoption of cloud-based solutions is expected to be a driving force in the growth of the tax management market. Cloud services, facilitating the delivery of infrastructure and applications through the internet by third-party providers, offer substantial advantages. Cloud-based tax software reduces costs significantly by eliminating the need for businesses to invest in and maintain expensive hardware and software infrastructure. This economic benefit enables businesses to efficiently allocate resources and save money. According to Cloudwards, the global cloud computing market was valued at $371.4 billion in 2020, projected to surge to $832.1 billion by 2025. Hence, the increased adoption of cloud-based approaches is anticipated to be a significant driver for the tax management market in the forecast period.

Technological advancements stand out as a pivotal trend shaping the tax management market. Major players in tax management are directing their focus towards technological innovations, aiming to gain a competitive advantage in the industry. An illustrative instance is J.P. Morgan's recent introduction in May 2022 of the Tax-Smart Separately Managed Account (SMA) Platform. This platform empowers advisors to construct tailored portfolios, leveraging J.P. Morgan's investment expertise combined with 55ip's tax-smart technology, thereby facilitating higher after-tax returns for their clients.

Companies operating in the tax management sphere are increasingly leveraging artificial intelligence (AI) to fortify their market position. AI and analytics tools serve as instrumental resources for tax departments, enabling them to extract comprehensive insights from substantial volumes of data. These tools assist business leaders in identifying potential issues and capitalizing on emerging opportunities. By analyzing global compliance data, AI aids in forecasting trends, identifying irregularities, and mitigating global risks. For instance, Taxaroo, a forward-thinking tax technology firm based in the United States, launched ZeroTax.ai in March 2023, an AI-driven tax preparation service known as TaxGPT. This innovative platform simplifies tax processes for individuals and small business owners by instantly providing free solutions to their tax-related queries. Additionally, it offers an optional tax expert assessment, enhancing its appeal to Taxaroo customers who use its tax and accounting practice management software, thereby augmenting value for tax enterprises and CPA (certified public accountants) firms.

In May 2022, Altus Group Limited, a Canada-based Intelligence as a Service provider, successfully acquired Rethink Solutions Inc., the developer of the itamlink property tax management software, for an undisclosed amount. This strategic acquisition brings in a complementary software offering, technical talent with expertise in property taxes, and establishes strong customer relationships for Altus Group. Rethink Solutions Inc. is a U.S.-based developer specializing in property tax and real estate expense management software.

Major companies operating in the tax management market report are Intuit, H&R Block Inc., Wolters Kluwer, Thomson Reuters, SAP,Avantax, Inc., Vertex Inc., Avalara, Sovos Compliance, Automatic Data Processing Inc., Meru Accounting, Whiz Consulting Private Limited, IMC Group, Savage & Palmer, Shoolin Consultancy, Nimblefincorp, Setindiabiz, BBNC, Whiz Consulting Private Limited, Valuenode, Invensis Inc., Sapience Pro, Zhongrui Yuehua, GFC Consulting Co Ltd Shanghai, Guangdong SILIQUE Group Co., Ltd., AVASK Accounting and Business Consultants Ltd., UTV Motion Pictures limited., Eros International, Dharma Productions, Red Chilies Entertainment, Makesworth Accountants, CJM Associates, The Accountancy Partnership, Salient Accounting & Finance, Burnt Orange Accounting, BBK Partnership, TaxAssist Accountants, Crowe Poland, PwC Poland, Konsu, Dezan Shira & Associates, Sberbank, Societe Generale TKB Investment Partners, Alfa Capital, UFG Asset Management, PZU Group, Aviva Investors Poland, H&R Block, Ernst & Young, KPMG International Limited, Zeni AI, TOTVS, TPC Group, Al Tamimi & Company, RSM UAE, Baker Tilly South Africa, Mazars

North America was the largest region in the tax management market in 2023. The regions covered in the tax management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the tax management market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The tax management market consists of revenues earned by entities by providing accounting services, corporate income tax services, payroll services, VAT compliance services, and reporting services. The market value includes the value of related goods sold by the service provider or included within the service offering. The tax management market also includes sales of solutions such as income-tax compliance solutions. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Tax Management Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on tax management market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for tax management? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The tax management market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Type: Software; Services
• 2) By Deployment Mode: Cloud; On-Premises
• 3) By Organization Size: Small And Medium Sized Enterprises (SMES); Large Enterprises
• 4) By Application: Corporate Banking Financial Services And Insurance (BFSI); Information Technology (IT) And Telecom; Manufacturing, Energy And Utilities; Retail; Healthcare And Life Sciences; Media And Entertainment; Other Verticals
• Companies Mentioned: Intuit; H&R Block Inc; Wolters Kluwer; Thomson Reuters; SAP
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: PDF, Word and Excel Data Dashboard.