Disruptive technologies and unprecedented global transparency are helping to accelerate changes in the way businesses manage tax. In almost every way, the tax function of tomorrow will look very different than it does today.
Having an informed view of tomorrow is vital. Here, EY professionals discuss the future of tax and what it means for companies now in eight areas where business is transforming.
1. The future of tax and payroll
Laws governing payroll tax withholding are changing more rapidly, thanks largely to digital technologies that enable tax authorities to more closely monitor payroll tax withholding, not only at the national level but in tens of thousands of subnational jurisdictions.
In reaction, multinationals increasingly want to replace their hodgepodge of local providers with one global payroll provider who can offer taxpayers a consistent process and sophisticated data analytics around their payroll administration.