Political and regulatory landscape

Top tax challenges and opportunities for global technology companies
PwC's Brad Silver, Global Technology Industry Tax Leader, discusses the top challenges and opportunities global technology companies face in today's economic environment

Taxes
The increasing tax burden is one of the most important concerns of CEOs1, driving the adoption of proper internal controls and robust financial reporting processes to satisfy tax authorities, regulators and other stakeholders. At the same time, tax authorities worldwide are concerned with ensuring both increased compliance amongst taxpayers, and that their fiscal policies are not overtaken by global business and economic developments.

Regulation
As companies globalise, they face a growing body of diverse and complex regulations. No matter how large, small or diversified your organisation, almost every part of it is touched by a complex web of constantly evolving regulations – and subject to enforcement actions and fines. Not to mention reputational risk. This is why CEOs consistently report over-regulation as a threat to business growth. Regulatory compliance is not just about playing defence. It also offers an opportunity to consistently strengthen your organisation through strategic, proactive measures – such as best practices, employee training, internal controls, and benchmarking appropriate for your industry and size.

Sustainability
Companies are recognising that more stakeholders in more places are looking for businesses to bring value to their societies. This is being brought into sharper focus by the growing influence of emerging economies, and calls for a new way of operating in the global economy.

How PwC can help

  • Establish solid data governance and design approaches
  • Identify and reduce tax risks
  • Implement tax strategies that complement your business and operational objectives
  • Develop a data management strategy and plan
  • Assess your current global exposure to environmental taxes and regulations; help you to manage risks and optimise your tax position from a sustainability perspective; and proactively engage with regional policy makers
  • Understand your sustainability compliance obligations and take advantage of subsidies, grants, taxes and other incentives; develop strategies that optimise the impacts of carbon, climate change and resource scarcity on your tax position; and prepare for future policy developments
  • Meet compliance obligations through solid energy reporting, transfer pricing for financing structures and assuring carbon-related data
  • Understand and quantify the environmental and social benefits and costs of your organisation’s current operations and practices
55%

of CEOs are concerned about a lack of competitive and efficient international tax policy



1 PwC 17th Annual Global CEO Survey

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