Global Tax Management: An Overview and Key Considerations

What is Global Tax Management

Global tax management is the process by which tax managers evaluate the global taxability of an organization’s industry, corporate structure, business model, operations, products or services, business activities, and daily transactions.

To ensure global tax reporting requirements are met accurately and consistently by all subsidiaries across multiple tax jurisdictions, global tax management requires a holistic view of an organization’s entire flow of transactional data across its entire value chain.

Global tax management brings together disparate technologies from multiple vendors, such as SAP, Vertex, Sovos, Avalara, Thomson Reuters, and different currencies and various regulators, contributing to complexity across the tax function.

Global Tax Management: An Overview and Key Considerations

What is Global Tax Management

Global tax management is the process by which tax managers evaluate the global taxability of an organization’s industry, corporate structure, business model, operations, products or services, business activities, and daily transactions.

To ensure global tax reporting requirements are met accurately and consistently by all subsidiaries across multiple tax jurisdictions, global tax management requires a holistic view of an organization’s entire flow of transactional data across its entire value chain.

Global tax management brings together disparate technologies from multiple vendors, such as SAP, Vertex, Sovos, Avalara, Thomson Reuters, and different currencies and various regulators, contributing to complexity across the tax function.

For many organizations, global tax management typically involves these three steps:

  • Define compliance needs worldwide across all operating units, lines of business, tax jurisdictions.
  • Map businesss processes to govern how compliance should flow through the organization globally.
  • Implement technology solutions that can accurately collect information and content updates from disparate sources in alignment with defined business processes to deliver master data and financial information asynchronously as required.

Key Considerations for SAPinsiders

Understand the growing complexity of global tax management. Organizations considering different areas of the world for new potential opportunities must be aware of how these business interests can affect the local country’s taxation. Changing legislation and mandates around global tax management is becoming ever more complex as organizations face growing challenges in evaluating how their growth initiatives may impact global tax liabilities.

Evaluate your content needs for effective global tax compliance. Tax managers need to consider what global activities may be taxed in which locations and ensure that they are meeting the tax requirements of each country accurately and promptly. Greater global tax compliance efficiency can help organizations reallocate accounting resources to support revenue-generating tax compliance opportunities.

Implement technology to simplify global tax management needs. The Ingram Micro and Dow Chemicals case studies provide best practices outlining how technology makes it possible to create a global view of the enterprise, enabling tax function managers responsible for global compliance, global reporting, and global controls. Content updates that provide real-time data on tax jurisdictions, tax rates, and tax content changes are critical for efficient global tax compliance.

73 results

  1. tech insights image

    Enhance Global Tax Management with Testing Automation  

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    Indirect Tax Complexity Driving Constant Functionality Changes Real-time reporting and e-invoicing mandates drive organizations to continually update and enhance global tax management functionality to accurately assess tax obligations promptly and avoid fines or other penalties. Growing complexity in compliance management, governance, and regulations is the primary driver of an organization’s digital tax strategy, according to…...…
  2. Video: Sovos talks Economic Nexus Complexity

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    As organizations grow and expand their operations into new markets, the complexities of indirect tax compliance can increase dramatically. Businesses selling into multiple tax jurisdictions need a global tax management solution that provides enhanced tax determination and calculation capabilities to support complex product and service taxability requirements. An example of increasing indirect tax complexity is…...…
  3. Growing Need for Sales Tax Compliance Automation

    Reading time: 4 mins

    Economic Nexus Complexity is Increasing Across the U.S., Creating Challenges for Tax Teams  Sales and use tax compliance is growing more burdensome for organizations that are conducting business in the U.S. due to complex economic nexus mandates. Many states are expanding their sales tax jurisdiction to include out-of-state companies with a certain level of sales…...…
  4. Video: Vertex Talks Indirect Tax, O2C, P2P Testing Automation

    Reading time: 1 min

    A global tax engine is a core component of a robust digital tax strategy designed to streamline an organization’s indirect tax compliance lifecycle. The successful implementation of a tax engine requires a well-defined and executed testing plan. When testing a new tax engine, it is essential to consider all possible scenarios to avoid real-world errors…....…
  5. Gunjan Tripathi

    How the Latest Cloud / Edge Engine Technology Offers Gains to Both SAP IT and Business Teams

    For any transactional based systems, the most overlooked technology advancement is a tax determination engine. 80% of companies are unaware of how technology has progressed over recent years. This session will outline: • How this latest technology advancements works with SAP. • What are the resulting benefits for both IT and business teams.
  6. Vicky-Bradford

    SAP S/4HANA: What Are the Tax Implications?

    Organizations face tremendous pressure to operate with more agility and speed to survive the current business climate. In response, many companies are making investments into intelligent technology systems to help reduce complexity and deliver valuable insights. SAP S/4HANA leverages technology that allows for enhanced data management and can provide the foundation for transforming to your digital tax strategy. After attending this session, you will: • Understand tax management and tax compliance on…
  7. report cover image

    Trends in Tax Benchmark Webinar

    Today’s tax compliance landscape has never been more challenging. As global e-commerce transactions continue to grow and organizations integrate digital business activities with their existing operations and ERP systems, the indirect tax compliance lifecycle is becoming more complex and costly to manage. Gain your steps to success in the Trends in Tax benchmark report.
  8. report cover image

    Trends in Tax Benchmark Report

    Reading time: 1 min

    Today's tax compliance landscape has never been more challenging. As global e-commerce transactions continue to grow and organizations integrate digital business activities with their existing operations and ERP systems, the indirect tax compliance lifecycle is becoming more complex and costly to manage. Gain your steps to success in the Trends in Tax benchmark report. This…
  9. Ingram Micro image

    Cloud-based Indirect Tax Saves Ingram Micro Time and Money

    Reading time: 8 mins

    As international trade grows, so too does the weight of indirect taxation on the business landscape. There is also a growing urgency for tax departments to enhance business value through digital transformation. Changes in indirect tax can come frequently, according to Calvin Lai, Senior Manager at Ingram Micro Tax. This means that ensuring indirect tax…
  10. American Dollars Cash Money. 100 dollars banknotes in the background. image

    Global Tax Automation for Your Enterprise

    Reading time: 8 mins

    Tax authorities around the world are pushing for real-time access to information and rules and tax rates change constantly. Roger Lindelauf, Director, Global SAP Partnership at Vertex, predicts that in the next two or three years, we will continue to see a lot of countries, such as in EMEA, move to e-audits, e-filings, and e-invoicing. “We are changing from information being pushed to…