Nearly 58% of survey respondents describe new and ongoing domestic and global tax compliance mandates as complex for their company, and 44% say regulations are changing too quickly to manage effectively, according to Sovos’ The Speed of Regulatory Change and AI Are Redefining Global Tax Compliance report.
“Regulatory complexity is accelerating, and finance leaders know it,” says Chris Lynch, chief marketing officer at Sovos. “This research shows that compliance is no longer a back-office concern - it’s a strategic risk that sits at the top of the agenda for CFOs and finance leaders around the world.”
Key takeaways:
· Respondents cited ViDA, the UAE Corporate Tax Expansion, and the Brazilian Tax Reform as top concerns to have the greatest impact in the next 12-24 months,
· 61% identified the pace of new government mandates as the biggest compliance risk over the next 2-3 years, followed by increasing complexity of global operations (56%) and rising costs of compliance technology and staffing (42%).
· ERP integration remains the top implementation barrier. 43% of respondents said their biggest challenge in implementing current and upcoming e-invoicing mandates is choosing a platform that seamlessly integrates with their existing accounting or ERP systems.
· Nearly 40% of respondents plan to evaluate or implement AI-driven tax compliance tools in the next fiscal year, making it the second-highest stated priority behind developing a more robust risk management plan (50%+).
· More than half of respondents identified accuracy in data and insights as the most important AI capability, followed by 46% who emphasized balancing efficiency and security concerns.
· 86% of respondents indicated being extremely or very concerned about data security with AI-enhanced compliance solutions.
· 75% of respondents agree that limitations in tax compliance prevent their organization from being more strategic in business decisions, including expanding geographies and introducing new products to market.
