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Central Europe Tax Technology Report
Technology is impacting nearly every aspect of our lives. This is creating a new age of process transparency and visibility. The public and tax authorities are on the same digitalisation path, with a growing appetite to know more about taxpayers and whether or not they are compliant with the evermore complex labyrinth of legal provisions affecting every tax regime. To keep up with these developments, Tax leaders everywhere are turning to technology to improve data quality, ensure compliance and optimise the way their organisations operate. New Deloitte report examines how Central Europe’s Tax function is evolving in a digital era.
Key findings
- 56% of respondents from across Central Europe are taking a proactive approach to their organisations’ technology strategies
- Leveraging wider digital-transformation projects and implementing next generation ERP systems can help Tax teams address the challenges of taxes becoming more digital
- 75% of respondents expect tax authorities to carry out more focused, narrow-scope audits through digitalisation
- A company’s tax strategy is predominantly set by other functions, such as Finance or IT: while the Tax function has some input into it, its control over the CapEx budget remains limited
- 60 % of our respondents are not planning (or at most are only considering) the implementation of next-generation ERP solutions
- Decisions relating to companies’ technology investments are being driven by tax authorities’ demands for digital filing, the increasing automation of compliance processes and the desire for better efficiency to free up resources
- 50% of respondents identify a lack of time and resources as the main challenge involved in transforming their organisations’ tax technology
- 62% of respondents are anticipating that tax authorities will have more direct access to their IT systems over the next three to five years
- 33% of respondents intend to outsource technology and processes that are not core to their companies’ tax strategy
- More than half of our respondents are planning to use business-intelligence dashboards and customised data management tools in their operations, while 34% are looking at utilising robotic process automation
The report is based on a survey of 125 senior tax and finance executives that took place across 15 Central European jurisdictions including Slovakia in February and March 2023. It is to help businesses understand the forces at play, the likely impacts of change and the strategic approach of businesses across the region.
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