2025 Global Tax Management Report & Detailed Findings

What's driving global tax transformation?

Tax leaders are under more pressure than ever. According to this year's SAPinsider research, the top forces reshaping tax strategy are growing compliance and governance complexity (40%), the digital transformation of tax and finance functions (35%), and rising demands from global tax authorities (25%). These pressures are pushing organizations to rethink how they manage tax across jurisdictions, and how quickly they can respond when rules change.

Where most organizations stand today

Despite the urgency, many tax functions are still in transition. Only 29% of respondents consider their global tax management strategy ""very mature."" Tax controls are an even bigger gap: just 3% of organizations have fully implemented them, and 18% have no plans to do so. Meanwhile, 72% of organizations measure tax performance by the timely filing of returns. That is a standard that becomes harder to meet as compliance requirements grow more complex and more digital.

Integration is the biggest pain point

For teams running SAP environments, integrating a global tax engine is the most pressing challenge, cited by 45% of respondents. Control and governance challenges (43%) and tax reporting concerns (34%) follow closely. Fragmented data, manual processes, and a shortage of professionals who understand both tax and technology are making it harder for teams to keep up with e-invoicing mandates, VAT/GST compliance, and emerging requirements like BEPS Pillar 2.

Brazil's reform is coming faster than many realize

One of the most urgent near-term challenges is Brazil. Starting in 2026, Brazil will begin unifying five existing taxes into a dual VAT system under Complementary Law No. 214/2025. The transition runs through 2033. While 59% of respondents are at least somewhat aware of Brazil's tax reforms, only 27% feel prepared. Tax and finance leaders who aren't already planning for this risk serious disruption.

The path forward: automation, integration, and early involvement

Organizations prioritizing centralized automation of tax data control frameworks (54%), advanced analytics (46%), and SAP S/4HANA capabilities (43%) are better positioned to reduce manual errors and respond to regulatory change. The report also makes clear that tax needs a seat at the table early in ERP transformation projects. When tax professionals are included in planning and implementation (not brought in after the fact), organizations avoid misaligned configurations, delays, and costly fixes.

Vertex and SAP are named in the report as key partners helping organizations build the integrated, intelligent tax infrastructure needed to manage compliance across borders. Vertex Copilot, AI-powered automation, and expanded SAP integrations are among the capabilities cited as part of this evolving ecosystem.