Tax Management Software Market
Tax Management Software Market Forecasts to 2030 - Global Analysis By Tax Type (Income Tax, Sales Tax, Property Tax, Value-Added Tax (VAT), Corporate Tax and Other Tax Types), Software Type, Deployment, End User and By Geography
According to Stratistics MRC, the Global Tax Management Software Market is accounted for $23.74 billion in 2023 and is expected to reach $55.17 billion by 2030 growing at a CAGR of 12.8% during the forecast period. Tax management software simplifies and streamlines the process of managing taxes for individuals and businesses. It typically includes features such as income and expense tracking, tax form generation, electronic filing capabilities, and tax planning tools. By automating tasks and providing guidance on deductions and credits, these programs help users maximize their tax efficiency while minimizing errors and compliance risks. Tax management software is a valuable tool for staying organized, saving time, and ensuring accurate tax filings.
According to Mint, an India-based financial newspaper, the volume of digital payments in India has increased by 33% year-on-year (YoY) during the financial year (FY) 2021–2022.The total digital payment transactions of 7,422 crores ($933 million) were recorded during this period, up from 5,554 crores ($698.24 million) transactions seen in FY 2020–21.
Market Dynamics:
Driver:
Increasing complexity of tax laws
Enterprises encounter difficulties in guaranteeing adherence to increasingly complex tax laws and effectively handling their tax responsibilities. Organisations may easily navigate complex tax landscapes with the help of tax management software, which offers sophisticated features including automatic calculations, real-time updates on tax regulations, and complete reporting capabilities. By providing a centralized platform for tax-related activities, these solutions enable businesses to minimize errors, reduce the risk of non-compliance, and optimize their tax strategies, thus driving the demand for tax management software.
Restraint:
Data privacy and security concerns
Data privacy and security concerns in tax management software relate to the protection of sensitive financial information against unauthorized access, breaches, and misuse. Instances of data breaches or non-compliance with privacy regulations can lead to severe financial and reputational damage for businesses. They erode trust among potential users, deterring adoption, and prompting existing users to seek more secure alternatives. Failure to address these concerns adequately can result in reluctance to invest in tax management software, limiting market expansion and innovation.
Opportunity:
Growing adoption of cloud computing
The growing adoption of cloud computing drives the expansion of the tax management software market by offering scalability, accessibility, and cost-effectiveness. Cloud-based tax management solutions enable businesses to access their tax data from anywhere, anytime, facilitating remote work and collaboration. Moreover, cloud platforms provide robust infrastructure for data storage and processing, enhancing the performance and reliability of tax software. On the whole, the adoption of cloud computing accelerates the growth of the tax management software market by providing flexible and efficient solutions to businesses of all sizes.
Threat:
High cost of implementation and maintenance
Businesses, particularly small and medium-sized enterprises (SMEs), may find it financially burdensome to invest in these software solutions due to the initial setup expenses and ongoing maintenance fees. Additionally, the cost can include training staff to use the software effectively. This financial barrier may deter potential customers from adopting tax management software, limiting market penetration and hindering the overall growth potential of the industry, especially among organizations with budget constraints.
Covid-19 Impact
The covid-19 pandemic accelerated the adoption of tax management software as businesses shifted to remote work environments, emphasizing the need for digital solutions to maintain compliance and efficiency. Increased regulatory changes and economic uncertainties further drove demand for software that could streamline tax processes and provide real-time insights. However, budget constraints and prioritization of essential expenses led some businesses to delay or scale back investments in tax management software. Overall, the pandemic underscored the critical role of tax management software in maintaining compliance and efficiency amid disruptive global circumstances.
The tax preparation software segment is expected to be the largest during the forecast period
The tax preparation software segment is estimated to have a lucrative growth. Tax preparation software has become integral for individuals and businesses alike, simplifying the complex process of filing taxes. These software solutions offer features such as automated calculations, electronic filing, and access to updated tax forms and regulations. They enable users to accurately prepare and file their tax returns, saving time and reducing the risk of errors. With the rise of digitalization, tax preparation software continues to evolve with enhanced security measures and user-friendly interfaces.
The financial institutions segment is expected to have the highest CAGR during the forecast period
The financial institutions segment is anticipated to witness the highest CAGR growth during the forecast period. Financial institutions can leverage tax management software to optimize tax planning strategies, minimize tax liabilities, and enhance overall financial performance. These software solutions automate tasks such as tax reporting, calculation, and filing, reducing the risk of errors and penalties. By centralizing tax information and improving efficiency, tax management software enables financial institutions to focus on core operations and better serve their clients while maintaining regulatory compliance.
Region with largest share:
Asia Pacific is projected to hold the largest market share during the forecast period owing to increasing government regulations, the adoption of digitalization, and the need for efficient tax compliance solutions. Countries like India, China, and Japan are witnessing significant demand for tax management software solutions as businesses seek to streamline their tax processes and ensure compliance with changing tax laws. Key players in the region are focusing on innovation and customization to cater to diverse business needs, further fueling the market expansion in the Asia Pacific region.
Region with highest CAGR:
North America is projected to have the highest CAGR over the forecast period, owing to stringent tax regulations, technological advancements, and the need for streamlined tax processes. The United States and Canada are key contributors to the market, with businesses across various industries adopting tax management software to ensure compliance and optimize tax planning. Key players in the region are investing in research and development to offer advanced software solutions tailored to the North American market needs. Factors such as the complexity of tax laws and the increasing volume of financial transactions are further driving the demand for sophisticated tax management solutions.
Key players in the market
Some of the key players profiled in the Tax Management Software Market include Avalara, Thomson Reuters Corporation, Wolters Kluwer, Intuit Inc., H&R Block, Sage Group PLC, Vertex Inc., ADP, Deloitte Touche Tohmatsu Limited, Ernst & Young Global Limited (EY), KPMG International Cooperative (KPMG), Sovos Compliance, LLC, TaxJar, Bloomberg Industry Group, TaxCloud and ClearTax.
Key Developments:
In November 2023, Thomson Reuters, a global content and technology company announced several updates to its suite of tax, accounting and audit products at its annual customer event, SYNERGY. The company also unveiled how it is building generative AI (artificial intelligence)-powered capabilities into its tax products, including in Checkpoint Edge, and ONESOURCE Global Trade Management.
In May 2023, Clear, India’s leading fintech SaaS firm has come up with a first-of-its-kind cloud software product, Clear Finance Cloud. This connected platform ensures seamless flow of information across different finance teams of an enterprise, enabling them to automate their entire functioning right from vendor onboarding, invoice capture, invoice digitisation, GST compliance and return filing, ITC maximization, vendor payments, as well as vendor financing all facilitated through a connected cloud based technology platform.
In February 2023, Avalara, Inc., a leading provider of cloud-based tax compliance automation for businesses of all sizes, launched the Avalara Property Tax, a new digital business solution for real property and personal property tax management designed to improve tax compliance with automation.
Tax Types Covered:
• Income Tax
• Sales Tax
• Property Tax
• Value-Added Tax (VAT)
• Corporate Tax
• Other Tax Types
Software Types Covered:
• Tax Preparation Software
• Tax Planning Software
• Tax Compliance Software
• Tax Audit Software
• Tax Administration Software
• Other Software Types
Deployments Covered:
• On-premise
• Cloud-based
End Users Covered:
• Government Agencies
• Financial Institutions
• Healthcare Organizations
• Retail & E-commerce Businesses
• Manufacturing Companies
• Professional Services Firms
• Non-profit Organizations
• Other End Users
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 End User Analysis
3.7 Emerging Markets
3.8 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Tax Management Software Market, By Tax Type
5.1 Introduction
5.2 Income Tax
5.3 Sales Tax
5.4 Property Tax
5.5 Value-Added Tax (VAT)
5.6 Corporate Tax
5.7 Other Tax Types
6 Global Tax Management Software Market, By Software Type
6.1 Introduction
6.2 Tax Preparation Software
6.3 Tax Planning Software
6.4 Tax Compliance Software
6.5 Tax Audit Software
6.6 Tax Administration Software
6.7 Other Software Types
7 Global Tax Management Software Market, By Deployment
7.1 Introduction
7.2 On-premise
7.3 Cloud-based
8 Global Tax Management Software Market, By End User
8.1 Introduction
8.2 Government Agencies
8.3 Financial Institutions
8.4 Healthcare Organizations
8.5 Retail & E-commerce Businesses
8.6 Manufacturing Companies
8.7 Professional Services Firms
8.8 Non-profit Organizations
8.9 Other End Users
9 Global Tax Management Software Market, By Geography
9.1 Introduction
9.2 North America
9.2.1 US
9.2.2 Canada
9.2.3 Mexico
9.3 Europe
9.3.1 Germany
9.3.2 UK
9.3.3 Italy
9.3.4 France
9.3.5 Spain
9.3.6 Rest of Europe
9.4 Asia Pacific
9.4.1 Japan
9.4.2 China
9.4.3 India
9.4.4 Australia
9.4.5 New Zealand
9.4.6 South Korea
9.4.7 Rest of Asia Pacific
9.5 South America
9.5.1 Argentina
9.5.2 Brazil
9.5.3 Chile
9.5.4 Rest of South America
9.6 Middle East & Africa
9.6.1 Saudi Arabia
9.6.2 UAE
9.6.3 Qatar
9.6.4 South Africa
9.6.5 Rest of Middle East & Africa
10 Key Developments
10.1 Agreements, Partnerships, Collaborations and Joint Ventures
10.2 Acquisitions & Mergers
10.3 New Product Launch
10.4 Expansions
10.5 Other Key Strategies
11 Company Profiling
11.1 Avalara
11.2 Thomson Reuters Corporation
11.3 Wolters Kluwer
11.4 Intuit Inc.
11.5 H&R Block
11.6 Sage Group PLC
11.7 Vertex Inc.
11.8 ADP
11.9 Deloitte Touche Tohmatsu Limited
11.10 Ernst & Young Global Limited (EY)
11.11 KPMG International Cooperative (KPMG)
11.12 Sovos Compliance, LLC
11.13 TaxJar
11.14 Bloomberg Industry Group
11.15 TaxCloud
11.16 ClearTax
List of Tables
1 Global Tax Management Software Market Outlook, By Region (2021-2030) ($MN)
2 Global Tax Management Software Market Outlook, By Tax Type (2021-2030) ($MN)
3 Global Tax Management Software Market Outlook, By Income Tax (2021-2030) ($MN)
4 Global Tax Management Software Market Outlook, By Sales Tax (2021-2030) ($MN)
5 Global Tax Management Software Market Outlook, By Property Tax (2021-2030) ($MN)
6 Global Tax Management Software Market Outlook, By Value-Added Tax (VAT) (2021-2030) ($MN)
7 Global Tax Management Software Market Outlook, By Corporate Tax (2021-2030) ($MN)
8 Global Tax Management Software Market Outlook, By Other Tax Types (2021-2030) ($MN)
9 Global Tax Management Software Market Outlook, By Software Type (2021-2030) ($MN)
10 Global Tax Management Software Market Outlook, By Tax Preparation Software (2021-2030) ($MN)
11 Global Tax Management Software Market Outlook, By Tax Planning Software (2021-2030) ($MN)
12 Global Tax Management Software Market Outlook, By Tax Compliance Software (2021-2030) ($MN)
13 Global Tax Management Software Market Outlook, By Tax Audit Software (2021-2030) ($MN)
14 Global Tax Management Software Market Outlook, By Tax Administration Software (2021-2030) ($MN)
15 Global Tax Management Software Market Outlook, By Other Software Types (2021-2030) ($MN)
16 Global Tax Management Software Market Outlook, By Deployment (2021-2030) ($MN)
17 Global Tax Management Software Market Outlook, By On-premise (2021-2030) ($MN)
18 Global Tax Management Software Market Outlook, By Cloud-based (2021-2030) ($MN)
19 Global Tax Management Software Market Outlook, By End User (2021-2030) ($MN)
20 Global Tax Management Software Market Outlook, By Government Agencies (2021-2030) ($MN)
21 Global Tax Management Software Market Outlook, By Financial Institutions (2021-2030) ($MN)
22 Global Tax Management Software Market Outlook, By Healthcare Organizations (2021-2030) ($MN)
23 Global Tax Management Software Market Outlook, By Retail & E-commerce Businesses (2021-2030) ($MN)
24 Global Tax Management Software Market Outlook, By Manufacturing Companies (2021-2030) ($MN)
25 Global Tax Management Software Market Outlook, By Professional Services Firms (2021-2030) ($MN)
26 Global Tax Management Software Market Outlook, By Non-profit Organizations (2021-2030) ($MN)
27 Global Tax Management Software Market Outlook, By Other End Users (2021-2030) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
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