SAP Global Tax Management


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.

124 results

  1. Contact intelligence

    Future Ready: Tax Optimization in the SAP Ecosystem

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    This document discusses the integration of emerging technologies such as AI, RPA, OCR, ML, and advanced analytics into the SAP ecosystem for tax optimization. It highlights the benefits and challenges of these technologies, emphasizing the importance of understanding their capabilities and limitations to enhance organizational value. The paper outlines real-world applications of these technologies in…

  2. ERP Investment

    Tax Transformation’s New and Improved Playbook

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    In today’s dynamic business landscape, managing tax compliance has become increasingly complex due to geopolitical, social, environmental, and economic uncertainties. To navigate these challenges, organizations must adopt a strategic approach to tax management, leveraging advanced tax engines to streamline processes, reduce risks, and enhance strategic planning. This document provides a comprehensive guide to successful tax…

  3. Empowering Informed Decision-Making with SAP PaPM in the Modern Tax Landscape

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    Welcome back to the continuation of our exploration into how SAP Profitability and Performance Management (SAP PaPM) is revolutionizing the way businesses approach taxation in the modern era.

  4. Breaking Barriers and Redefining Global Taxation with SAP Profitability and Performance Management

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    In today’s rapidly evolving digital landscape, the global economy is undergoing a profound transformation. As businesses become increasingly digital, the intricacies of the tax environment are also intensifying, presenting new challenges for organizations worldwide.

  5. Research Webinar: Global Tax Management 2024

    September 17, 2024

    SAPinsider delves into the shifting priorities in taxation and technology, emphasizing the significant impact of digital transformation and the adoption of SAP S/4HANA on finance and tax functions. It reveals the key drivers shaping tax priorities and projects, highlighting new solutions tax professionals are investing in. The rapid changes in global tax regulations have made…

  6. Global Tax Management 2024 – Benchmark Report

    Reading time: 1 mins

    SAPinsider delves into the shifting priorities in taxation and technology, emphasizing the significant impact of digital transformation and the adoption of SAP S/4HANA on finance and tax functions. It reveals the key drivers shaping tax priorities and projects, highlighting new solutions tax professionals are investing in. The rapid changes in global tax regulations have made…

  7. Avoiding Tax Traps with BSI

    Reading time: 2 mins

    Tax determination can be one of the most complex issues that companies must address, especially as they grow and expand operations into different tax jurisdictions. These tax burdens are constantly shifting, and manually updating them requires significant effort, at best. At worst, this can result in audits and adjustments to future filings and paychecks. To…

  8. Sovos Debuts Indirect Tax Suite to Overcome Global Compliance Challenges

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    Many SAP organizations are looking to expand operations into different markets. Whether that is across state lines or international, a more interconnected global economy has provided a new range of opportunities – but that also comes with challenges. When expanding their geographic reach, companies must contend with the tax implications of operating in multiple markets.…

  9. Avalara Named a Leader by IDC MarketScape

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    The IDC MarketScape reports state, “Avalara helps businesses of all sizes get tax compliance right,”  and notes that some of the company’s strengths include flexible cloud-native architecture, 1,000+ signed partner integrations, and real-time compliance capabilities.

  10. Pacon gets Creative with Avalara Tax Compliance Suit

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    Fast-growing maker of art and educational supplies meets unique needs with expert implementation partner.