Local tax rules can vary widely.
Local tax rules can vary widely.
Companies should build strong tax compliance functions.
Enterprise resource planning and effective communication drive global readiness.
As global tax authorities accelerate digital enforcement and real-time reporting, middle market companies face a new era of compliance pressure. Expanding into new jurisdictions, adapting to evolving rules and managing cross-border operations all introduce risk and complexity. But with the right strategies, companies can build a resilient, future-ready tax compliance function.
Here are five practical ways to strengthen your global tax posture.
Each country enforces its own tax rules and reporting protocols. Even within the European Union, country-by-country reporting varies. Some jurisdictions allow a checkbox in the corporate tax return, while others require separate notifications or mandate them when prior data changes.
E-invoicing is another area where rollout timelines differ. Italy has implemented mandatory electronic invoicing, while France and Poland are still in transition. In some cases, business-to-business and business-to-consumer transactions have separate deadlines. These differences aren’t just operational—they’re strategic. Staying ahead of local nuances is essential to avoid penalties and maintain compliance.
Fragmenting tax responsibilities across multiple providers may seem efficient, but it often leads to confusion and missed opportunities. When different advisors handle corporate tax, transfer pricing and tax provisioning, communication gaps emerge. The result can be delayed filings or uncertainty about who’s responsible for new requirements.
For example, Pillar Two touches transfer pricing and corporate tax. If those services are split, who alerts the company about new filing obligations? Consolidating related services with a single advisor improves efficiency, accountability and readiness.
A modern enterprise resource planning (ERP) system is foundational to global tax compliance. It should support unified and localized software, centralized processes and compatibility with country-specific reporting needs. Many companies still operate with outdated or fragmented systems, forcing tax teams and advisors to rely on manual workarounds.
The workarounds not only slow compliance efforts but also introduce risk. An integrated ERP environment streamlines data access and positions companies to adapt quickly to new requirements.
Whether your organization follows a functional, matrix or hybrid structure, clarity is key. Assigning a single point of contact to coordinate with the tax advisor helps avoid delays and confusion. Without this, advisors may waste time chasing inputs across departments.
In some companies, financials come from a shared service centre, transfer pricing comes from a third party and tax account details come from a regional head. Without a documented RACI (responsible, accountable, consultative, informed) matrix, things fall through the cracks—especially in companies with frequent turnover. Clear role mapping ensures accountability and smooth collaboration.
Strong communication is the cornerstone of successful compliance. Regular check-ins, structured workflows and clear escalation paths help keep everyone aligned. Project management tools can break down filings into manageable tasks, assign responsibilities and track progress.
Transparency builds trust. Advisors should also provide ongoing updates about changing tax laws by jurisdiction. When communication is proactive and consistent, outcomes improve.
Global tax compliance is complex, but not insurmountable. By combining local knowledge, system infrastructure, centralized advisory relationships, defined responsibilities and strong communication, companies can stay ahead of regulatory changes and operate with confidence across borders.