Global Reframing Tax Survey 2025

Globally, a confluence of megatrends (led by AI advancements and climate change) is forcing companies to reinvent their business models and transform their operations. And any kind of strategic transformation, new way of working or new revenue stream comes with tax implications.

Simply put, if CEOs are going to lean into reinvention, they need tax executives at the table.

The big picture

Tax leaders are caught between multiple competing priorities as they respond to demands for greater efficiency, strive to play a strategic role in business reinvention, and deal with once-in-a-generation changes in the global corporate tax environment.

Key findings

The report suggests that businesses need to act on two fronts: First, finding ways to alleviate pain points and equip the tax function with the skills, expertise and technology it needs to optimise day-to-day operations. And second, making sure that tax can play a strategic, value-creating role in the reinvention journey to come.

New legislation and compliance obligations are a major challenge for tax executives. More than 90% of survey respondents at large organisations say that Pillar Two will have an impact on their business. Yet less than half (43%) feel well-placed to handle regulatory change.

This is particularly relevant for Ukraine, even though it's not covered in this research. Despite the full-scale invasion, tax legislation continues to evolve, making 2025 a crucial year for Ukraine's economic development. A key example of aligning with European standards is prioritizing Pillar Two in the National Revenue Strategy 2024-2030, approved in 2023. (To keep informed about the most recent updates visit tax and legal alert page).

Tax is increasingly expected to play a strategic role: 90% of survey respondents say their organisation is currently undertaking a strategic business transformation or is planning to do so, and 90% say the tax function is involved.

However, many business leaders continue to see tax primarily as a cost centre, rather than a strategic capability with transformative potential.

Your next move

Focus on the business case for transformation. More than 40% of CEOs believe their company will no longer be viable in ten years’ time if it continues on its current path. For most companies, there is no viable alternative to ongoing business model reinvention and organisational transformation.

Establish tax as a must-have contributor to strategic decisions. Working through the tax implications of new ventures can potentially increase profits by two to ten percentage points. There is also less likelihood of disputes with tax authorities if the tax function is involved at a high level.

Boost efficiencies in day-to-day tax operations. Decide which day-to-day tax activities are relevant and efficient. If they are not relevant, discard them. If they are relevant, then make them more efficient. Realising efficiencies across people, processes and technology can free up capacity to focus on strategic business transformation.

Many (perhaps most) tax functions are grappling with significant gaps in both traditional tax expertise and in emerging skills.

• 95% say they have a skills gap in their tax function

• 55% say this gap is very wide

• The top 3 skills needed to close this gap: AI knowledge, specialised tax expertise, and data analysis

Your next move

Assess existing skills and identify gaps. Conduct a comprehensive skills audit, focusing on both technical and leadership capabilities. Tax leaders themselves may need skills to guide their teams through transformation and technology adoption and to advocate more effectively for tax across the organisation.

Invest and re-balance. Once a baseline has been established, invest in upskilling programmes, for example in AI, data science, and stakeholder engagement. Also, re-balance recruitment efforts between tax expertise and tech skills.

Organisations are looking to harness the power of technology for the transformational impact it can have. Automation and AI, particularly GenAI, are starting to transform the tax function, offering opportunities to streamline operations and improve compliance.

Now

• 56% of respondents report tangible benefits from using GenAI
• 47% say that leveraging new technology in the tax function is a top priority

Looking ahead

• More than 80% expect GenAI to transform tax planning and strategy in the next three years.
• 60% think that automation and GenAI will revolutionise tax compliance and reporting processes.

Your next move

Build data readiness. Ensure tax data is high quality, structured and accessible to maximise AI’s effectiveness. After all, AI outputs are only as good as the data upon which they are based.

Invest in AI and GenAI pilots. Start with small, high-impact projects to test AI’s capabilities, matching specific needs with targeted solutions.

Foster trust and governance. Implement responsible AI practices to address stakeholder concerns around accuracy, compliance and ethical risks.

The model for external support has evolved in recent years from a simple binary—either fully in-house or fully outsourced—to a broader spectrum of options. External support can help to rewire functions and tasks, boost productivity, and pursue growth through operating model transformation. In fact, PwC research finds that companies using managed services partnerships (MSPs) to close capability gaps tend to outperform those using MSPs mainly to cut costs.

More than 80% of survey respondents say they already use external support for most tax activities, with around half doing so always.

Reasons for seeking external support

• Access to new skills: External advisors bring expertise in AI, data analytics and ESG compliance. 
• Staying ahead of regulatory change: For instance, 52% of organisations are engaging external advisors to prepare for Pillar Two implementation.
• Leveraging new technology: Outsourcing helps accelerate the adoption of new tools without overburdening internal teams.

Your next move

Look at what you have and what you need. Optimising the tax operating model starts with an assessment of the skills, expertise, processes and technology that areas available to meet current and future needs.

Talk to providers, based on data. Engage in fact-based conversations with providers about what’s needed to fill gaps across people, technology and processes.

C-suite leaders need tax at the table to inform strategic decisions and optimise operations. Reflecting on these questions may help leaders clarify their path forward:

• Does our team have the right blend of tax, technology and data expertise to deal effectively with regulatory change and new compliance obligations?

• Do we have a plan to harness AI and other automation technologies in ways that not only improve efficiency but also help our people play a strategic role?

• Are there additional capabilities or processes that could be augmented or fulfilled by service providers?

• As leaders, are we doing enough to upskill and prepare ourselves and our tax teams for changes to come?

Perhaps counter-intuitively, we see tax as well placed to set the transformation standard for the rest of the business. Operationally, it’s a discrete function, well-suited to pilot projects. By testing, learning, and scaling across AI, automation, upskilling and outsourcing, tax leaders can blaze a trail—and reframe tax for the future.

PwC’s inaugural Global Reframing Tax Survey 2025 spans quantitative and qualitative research drawing on respondents in organisations spread over 47 countries and multiple sectors. We carried out a quantitative survey of 1,205 senior executives, of which more than 80% worked in the tax or finance functions, and we conducted 11 in-depth interviews. Topics included business model reinvention, transformation, GenAI, governance and risk management, tax compliance, people/staffing, and new taxes. This body of research sheds light on the challenges that tax executives face and role of tax in business strategy.