SAP Global Tax Management


Global Tax Management: An Overview and Key Considerations

What is Global Tax Management

Global tax management is the process by which tax managers evaluate the global taxability of an organization’s industry, corporate structure, business model, operations, products or services, business activities, and daily transactions.

To ensure global tax reporting requirements are met accurately and consistently by all subsidiaries across multiple tax jurisdictions, global tax management requires a holistic view of an organization’s entire flow of transactional data across its entire value chain.

Global tax management brings together disparate technologies, different currencies, and various regulators, contributing to complexity across the tax function.

Global Tax Management: An Overview and Key Considerations

What is Global Tax Management

Global tax management is the process by which tax managers evaluate the global taxability of an organization’s industry, corporate structure, business model, operations, products or services, business activities, and daily transactions.

To ensure global tax reporting requirements are met accurately and consistently by all subsidiaries across multiple tax jurisdictions, global tax management requires a holistic view of an organization’s entire flow of transactional data across its entire value chain.

Global tax management brings together disparate technologies, different currencies, and various regulators, contributing to complexity across the tax function.

For many organizations, global tax management typically involves these three steps:

  • Define compliance needs worldwide across all operating units, lines of business, tax jurisdictions.
  • Map businesss processes to govern how compliance should flow through the organization globally.
  • Implement technology solutions that can accurately collect information and content updates from disparate sources in alignment with defined business processes to deliver master data and financial information asynchronously as required.

Key Considerations for SAPinsiders

Understand the growing complexity of global tax management. Organizations considering different areas of the world for new potential opportunities must be aware of how these business interests can affect the local country’s taxation. Changing legislation and mandates around global tax management is becoming ever more complex as organizations face growing challenges in evaluating how their growth initiatives may impact global tax liabilities.

Evaluate your content needs for effective global tax compliance. Tax managers need to consider what global activities may be taxed in which locations and ensure that they are meeting the tax requirements of each country accurately and promptly. Greater global tax compliance efficiency can help organizations reallocate accounting resources to support revenue-generating tax compliance opportunities.

Implement technology to simplify global tax management needs. The Ingram Micro and Dow Chemicals case studies provide best practices outlining how technology makes it possible to create a global view of the enterprise, enabling tax function managers responsible for global compliance, global reporting, and global controls. Content updates that provide real-time data on tax jurisdictions, tax rates, and tax content changes are critical for efficient global tax compliance.

84 results

  1. Case Study: A Business Case for Indirect Tax Automation with Goodyear

    Published: 26/May/2023

    Reading time: 1 mins

    The indirect tax environment had seen a huge increase in digital obligations and real-time reporting, where data needs to be correct from the beginning with little option to make changes later. This creates additional exposure to tax authority requirements, and therefore mitigation of the tax and compliance risk is critical. Improving the efficiency and accuracy…

  2. Thomson Reuters ONESOURCE Indirect Tax Certified for S/4HANA Cloud, Private Edition

    Published: 10/May/2023

    Reading time: 2 mins

    Thomson Reuters’ ONESOURCE Indirect Tax – Global Next recently earned SAP certification for integration with the SAP S/4HANA Cloud, private edition. As more and more organizations transition to the cloud, this solution can offer improved indirect tax compliance while also reducing the reliance on manual transactions and calculations, thus drastically lessening the chances of an…

  3. Tax Compliance at the Edge with ONESOURCE

    Published: 26/April/2023

    Reading time: 7 mins

    As the world becomes more interconnected and the complexity of indirect tax regulations continues to grow, multinational organizations need to centralize their business and financial data to ensure a single source of truth. SAP S/4HANA is a robust offering for achieving this goal, but using it alone can present challenges like latency and an increased…

  4. Using SAP to Manage U.S. Sales Tax from Overseas

    Published: 25/April/2023

    Reading time: 5 mins

    Many organizations from outside the U.S. struggle to do business within the country, due in large part to its complex and often confusing sales tax system. Unlike VAT or GST, sales tax is only levied on the final transaction with the customer, and there are no charging or reporting requirements for the companies in the…

  5. financial performance

    Pain Point Trends across Global Tax Management

    Published: 24/March/2023

    Reading time: 2 mins

    Tax teams face numerous significant challenges in their daily operations. The complexity of operations presents a long list of potential obstacles to minimizing tax burden. In a previous blog, we explored how modernization of tax and finance (migration to SAP S/4HANA, automation, use of RPA, AI/ML, etc.) as the top driver of global tax management…

  6. Accounts Payable

    How Drivers for Global Tax Management Strategy Have Changed

    Published: 23/March/2023

    Reading time: 1 mins

    The global tax landscape is complex and constantly shifting. This means that organizations not only have to change their tools to keep pace, but often they must realign their entire strategy to stay afloat. In a previous blog, we highlighted how digital transformation and modernization of tax and finance is the top driver of global…

  7. Accounts Payable

    Technologies Used to Support Global Tax Management Strategy

    Published: 22/March/2023

    Reading time: 2 mins

    Finding the right global tax management strategy can make a significant difference in the bottom lines of organizations of all sizes. Yet the proper strategy can only be achieved if organizations can pair their teams with the appropriate technology in order to maximize their overall value. In the previous blog of this series, we dove…

  8. financial close

    Top Global Tax Management Requirements

    Published: 21/March/2023

    Reading time: 2 mins

    In this blog, we will discuss how digital transformation and modernization of tax and finance are the top drivers of global tax management strategies. We will highlight the requirements that SAPinsider members said were the most important to them in the Global Tax Management Benchmark Research Report. In the benchmark report, SAPinsiders clearly prioritized the…

  9. financial close

    Key Drivers and Strategies for Global Tax Management

    Published: 14/March/2023

    Reading time: 1 mins

    The global tax landscape is a complex and constantly evolving challenge. Organizations must keep up to stay competitive in the broader business world. There are challenges, both internally and externally, that make tax compliance an issue. In this blog, we will highlight some of those drivers that affect how organizations run their global tax management…

  10. hybrid workforces payroll

    The Impact of Global Inflation on Day-to-Day Operations in SAP

    Published: 07/March/2023

    Reading time: 3 mins

    Inflation has been one of the biggest sticking points for businesses over the last year. In an increasingly connected global economy, no country is ever fully insulated from the effects of inflation on the price of goods, as well as how it alters interest rates. In this article, SAPinsider expert Adrian Wilder will walk through…