Amid uncertainty, global tax leaders are doubling down on transparency and digitalization, while sustainability’s impact grows: New Deloitte survey

New York, NY, USA 23 April 2025 - As tax policy evolves on the global stage, Deloitte’s 2025 Global Tax Policy Survey gathered insights from more than 1,100 tax and finance executives across 28 countries, uncovering critical insights into the evolving landscape. The survey, now in its 12th year, revealed transparency and reporting and digitalization as enduring key priorities, while sustainability policy is having a growing impact on organizations amid ongoing regulatory uncertainty.

Transparency an urgent priority for tax leaders

With the majority of respondents anticipating increased public tax disclosures over the next two to three years (82%), tax transparency and reporting remained the No. 1 priority for tax leaders. In addition to stakeholder expectations and voluntary disclosures, a significant number of respondents (81%) said national-level transparency laws are the most influential regulatory force they are facing.

Concerns about maintaining a well-defined tax transparency strategy have slightly diminished since last year, with nearly all respondents confirming they currently have one in place. As AI-driven analysis increases scrutiny of public country-by-country reporting (CBCR) data, the need for consistent global reporting has never been more critical to business performance.

Advancing technology poses challenges and opportunities
 

The digitalization of tax remains a top priority globally, with nearly nine in ten respondents reporting, in their countries, some movement toward the Tax Administration 3.0 model where “tax just happens.” While this model—reliant on advancing technologies—promises greater efficiencies in taxation, optimism about its benefits for businesses has waned year over year. While AI-driven tax compliance software continues to expand globally as leaders work to keep pace with change, the majority remain cautiously optimistic, with only 29% of respondents believing AI will enhance accuracy. At the same time, the Survey reveals emerging concerns among some respondents that e-invoicing may introduce more complexity rather than simplification of tax compliance.

Unlocked by emerging technologies, the rise of remote and cross-border work also presents mounting tax challenges, with roughly three-quarters of businesses expressing concerns about corporate tax risks, such as transfer pricing. Still, the survey reveals that mixed working models are here to stay, and two-thirds report increased use of tax incentives to attract foreign talent, particularly in high-skilled industries. As global workforce mobility accelerates, businesses must align tax policies with talent strategies to navigate complex regulations.

Sustainability coming into focus

Sustainability has become a key priority for businesses, jumping from No. 5 to No. 3 in the report’s impact rankings year over year. This includes everything from reporting requirements to new and emerging taxes to corporate sustainability initiatives. The majority of respondents (55%) highlighted sustainability as a top priority within their business. While global sustainability policy is in flux, there is a strong correlation between demands for transparency and reporting and a growing focus on sustainability that underscores this trend.

Most respondents (56%) note that their tax functions are “fully embedded” in developing their current sustainability strategies. The cost of compliance with carbon border adjustment mechanisms remains a significant challenge, particularly in Africa, where respondents (45%) rate it as a major issue. At the same time, only a small portion (36%) are leveraging grants and incentives to offset the costs of their ESG-related investments, while the majority (58%) are only exploring such options.

To learn more about the Deloitte 2025 Global Tax Policy Survey, please visit: https://www.deloitte.com/global/en/services/tax/research/2025-global-tax-policy-survey.html