Tax in a Time of Transition: Navigating the shifting global tax policy landscape

The global tax environment is becoming increasingly complex and interconnected, with significant implications for compliance, risk management, and strategic planning.

Recent developments such as the OECD’s Pillar Two global minimum tax, EU regulatory reforms, and evolving US and Asian tax policies are reshaping how multinational enterprises operate.

In this report we explore the key themes and insights from recent discussions with some of our clients.

We explored several critical themes shaping the international tax landscape, including:

Compliance as a Strategic Advantage

Compliance requirements are becoming more demanding, driven by new reporting obligations, data transparency rules, and cross-border regulatory alignment. Rather than viewing compliance as a cost centre, leading organisations are leveraging it as a strategic differentiator.

Evolving Perspectives on Core Issues

Traditional pain points such as transfer pricing, VAT recovery, and audit management are no longer seen as purely technical challenges.

Strategic levers: These areas now influence pricing strategies, supply chain decisions, and overall business resilience.

Collaborative compliance regimes: Growing adoption of cooperative frameworks and advanced pricing agreements fosters predictability and reduces disputes.

Proactive engagement: Early dialogue with tax authorities and transparent risk-sharing can mitigate controversy and build trust.

Regional Developments

Tax policy shifts vary significantly across regions, requiring tailored strategies:

Middle East & Africa: Introduction of corporate tax regimes is reshaping investment structures and compliance obligations.

Asia: Refinements in transfer pricing and VAT rules demand closer monitoring of intercompany transactions and documentation standards.

Europe: Sustainability and digitalisation initiatives are influencing tax incentives, reporting frameworks, and operational models.

Regular reviews of group structures, supply chains, and transaction flows are essential to manage these regional dynamics effectively.

Sustainability as a Business Imperative

Sustainability is now embedded in tax and trade strategies, driven by investor expectations and regulatory mandates. EU initiatives: Proposals such as the Omnibus Directive signal heightened scrutiny on environmental and social impacts within tax frameworks.

Integrated compliance: Aligning sustainability goals with tax planning ensures consistency across reporting, operational decisions, and stakeholder communications.

Data and digital tools: Robust data management and technology enable accurate ESG reporting and support compliance with emerging global standards.

Looking Ahead: Agility, innovation, and proactive engagement remain critical. Organisations that anticipate change, invest in technology, and foster collaboration across functions and geographies will be best positioned to navigate uncertainty and shape the future of global tax.

We hoped to touch on just some of these complexities and trust this summary supports you in navigating the evolving tax environment.

For any further questions or detailed discussions, please contact your usual representative or any of the individuals listed in this report.