Tax transformation with Cloud ERP

New strategies and operational capabilities to support evolving business needs and tax regulations

To take advantage of the digital transformation, tax departments need to address historical Issue with non-tax sensitised business processes but must also ensure that they are not creating more complexity in their tax data and business processes. Together, Deloitte and SAP® are supporting our customers’ tax departments with their digital transformation enabled by SAP S/4HANA® Cloud, analytics and next generation best practices to deliver business value and support future compliance needs.

Tax departments must leverage the enterprise’s digital transformation project as a catalyst for tax compliance transformation and an opportunity to bring tax into the dialogue as business processes are enhanced.

With strategic tax management, tax becomes part of the business decision, making it easier to explore new business models and foster trust in the working relationship with local communities and tax authorities.

Drivers of transformation in tax today

Fundamental shift in the way tax reporting is done*

Tax Authorities and governments are continuously evolving and creating new mandates for enterprises to reduce the GST gap, prevent tax evasion and maximise the efficiency of tax collection. This has forced enterprises to provide more tax data than ever and tax authorities have shifted both how they access that data and how they audit it.

Globalisation and new business models

Enterprises must promptly comply with local regulations in new Market, enable sustainability of the supply chain and optimise decisions to minimise their tax compliance burden. The tax function must redefine itself and move from managing compliance operations to becoming a strategic partner for the business.

Sustainability and climate change

To further incentivise enterprises to transition to sustainable enterprises and start taking responsibility for their environmental impact, regulators are introducing new regulations. Tax professionals need to be ready to comply with new reporting requirements.

Cloud ERP transformation: The catalyst for new-generation tax processes

The digital business transformation enabled by cloud ERP creates an opportunity for tax departments to achieve the changes necessary to meet the challenges of future compliance.

Tax departments can showcase their value through the lens of digital transformation and leverage the power of a cloud ERP to discover new ways to deliver value to the business. For example:

Building a growth platform for tax transparency and fairness
Running simple and integrated digitalised tax processes
Reducing risk and scale globally

Cloud ERPs are enabling tax professionals to reimagine compliance in real time within business processes, providing immediate insights into tax risk, as well as predictive analysis for optimising future choices.

The future of tax: Business transformation with Deloitte and SAP S/4HANA Cloud

Digital business transformation

A digital business transformation powered by Deloitte and SAP S/4HANA Cloud presents an opportunity for tax departments to embed tax requirements into business processes and creates a sustainable foundation that can adapt to future compliance needs.

To leverage the new cloud ERP, tax professionals should be aware of the general opportunities that having tax embedded into the ERP design can bring. These opportunities include:

Enabling the tax department to have a more strategic mindset
More effective control over risks and
Operational efficiencies that help minimise costs

Entering a new market

Entering a new market brings significant compliance challenges, from learning local requirements, to building solutions. SAP S/4HANA Cloud with SAP Document and Reporting Compliance is ready to meet compliance needs of both existing and potential new Market, providing the agility businesses require to win in the digital world.

It provides peace of mind to:

Manage all Type of mandates, enabling simple adoption of constant legal reforms while reducing cost and providing transparency
Facilitate adoption of constant legal reforms in an efficient way
Mitigate risks, reduce financial statements and tax audit risks by increasing transparency, guaranteeing full digital audit trial and providing traceability to underlying transactions
Readily comply with the latest environmental regulations and limit the environmental, social and economic impact of businesses.

Unlocking measurable tax value through business transformation

Buinesses find that by including tax in the beginning of the digital transformation project, they can unlock benefits that support the overall positioning and business case for the transformation itself.

To measure the business value, both quantitative and qualitative benefits should be considered. Quantitative benefits are often easier to capture and rationalise. These include:

Cash tax savings and minimising tax leakage
Time savings
Reduction in future costs

Alongside these quantitative benefits, there are also many qualitative benefits that can be achieved through ERP implementation.

Examples include:

Increase in actionable insights
Ensure compliance
Enhanced risk management

Tax Transformation Trends 2023

Insight-driven compliance

Deloitte’s biannual Tax Transformation Trends report has been published for over ten years. The 2023 report shows that tax and regulatory changes, such as the OECD Pillar Two and ESG measures, prompting companies to address long-standing data challenges.

Explore the report

Interested in learning more?

Deloitte and SAP enable enterprises to gain immediate tangible benefits. Improved compliance and increased efficiencies facilitate optimising tax strategy, easily adapting to future needs.

Download the report

Tax Alert

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Deloitte and SAP: Transforming tax together