Tax complexity is top challenge for global businesses

For the third year in a row, tax transparency and reporting ranked as the top theme impacting businesses, with 38% of respondents naming increased compliance, administrative, and reporting requirements as the primary driver of operational impact. The complexity stems from multiple sources, including the Pillar Two global minimum tax rules from the Organization for Economic Cooperation and Development (OECD) and the European Union Carbon Border Adjustment Mechanism.

Part of the pressure reflects the one-directional nature of tax policy, Amanda Tickel, Deloitte global tax and trade policy leader, told Checkpoint. “It’s very rare that countries or governments remove taxes, they just tend to add more in,” she said. Multiplied across dozens of jurisdictions, that layering creates a sense of an ever-changing landscape.

With Pillar Two in its implementation phase, 88% of respondents expect to pay more tax as a result, though 56% anticipate only a marginal increase. Implementation is advancing unevenly, Tickel said. Major markets are proceeding, led by the European Union, while many jurisdictions, including India, China, and a number of Latin American and African countries, are not yet implementing any form of Pillar Two.

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