2015
Global Tax
Market
Assessment
2015 Global Tax Market Assessment
CONTENTS - US TAX MARKET
US Tax Market
|
4-8
A Review of Predictions for 2014
4
OECD/BEPS – Impact on tax in 2014
4
2014 Turnover Trends
4
Baby Boomers & Turnover
4
Employee Satisfaction – Mentoring & Staff Development
5
Tax Reporting and Systems
5
Predictions for 2015
5
Tax Reform Uncertainty
5
International Tax
5
State Tax
6
Demographic Trends
6
Improved Economic Conditions
6
Regulatory Pressures
6
Contract Staffing
6
Impact on Gen X’ers
6
Impact on Millennials
7
Global Indirect Taxes – Preparing for the Coming Storm VAT/GST
7
Risk Mitigation
7
Lost Tax Planning Opportunities
7
The Oil & Gas Outlook
7
About TaxTalent & Tax Search and Contact Information
Copyright 2015 TaxTalent, Inc.
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2015 Global Tax Market Assessment
CONTENTS - NON-US TAX MARKETS
Europe Tax Market
|
9-11
A Review of Predictions for 2014
EU and Switzerland
9
9
Luxembourg and Ireland
10
Tax Accounting and Indirect Tax
Predictions for 2015
10
10
Change of Skillsets
11
Technology
11
Can you join the dots?
11
Tax Transparency
11
Middle East Tax Market
|
12
A Review of Predictions for 2014
12
Predictions for 2015
12
Asia-Pacific Tax Market
|
13
A Review of Predictions for 2014
13
Predictions for 2015
13
Latin America Tax Market
|
14
A Review of Predictions for 2014
14
Predictions for 2015
14
Copyright 2015 TaxTalent, Inc.
2015 Global Tax Market Assessment
A REVIEW OF
PREDICTIONS FOR 2014
US TAX MARKET
2014
2014 Review
OECD/BEPS –
Impact on tax in 2014
A significant prediction for 2014 that
came to fruition, albeit earlier than
we had anticipated, was the impact
of the Organization for Economic Cooperation and Development (OECD)
action plan on Base Erosion Profit
Shifting (BEPS). We accurately identified that the push
from OECD on BEPS would result in additional work
demands focused around international tax planning.
We forecasted accurately that tax departments that
could not handle the increased workload would
have to add permanent headcount or rely on outside
advisors or contractors to provide the necessary
relief. In reality, we experienced a doubling of
executive tax searches in the transfer pricing area
as well as a significant
uptick in international tax
planning searches.
2014 Turnover Trends
We accurately anticipated
that 2014 would be a
year with higher turnover
based on several factors
including:
• An improving economy
• Increased candidate access to open tax jobs
• Poor talent development efforts by employers
Traditionally, the 4th quarter represents a slower
recruiting period as tax professionals are focused
on securing year-end bonuses and vesting their
equity. There is also the ethical and moral dilemma
of leaving a company so close to calendar year-
end close. However, in the 4th quarter of 2014, we
experienced more executive search activity in this
quarter, than in the last seven years.
Our prediction for growing levels of Baby Boomer
retirements in 2014 was generally on target. We did
not see a mass Boomer exit; however, we did track a
significant number of retirement announcements in
the second half of 2014. This should significantly
affect the 2015 market.
As you will see, we believe this is a clear signal that
we are turning the corner leading the tax profession
back into a “candidate driven” market.
Baby Boomers & Turnover
Our prediction for growing levels of Baby Boomer
retirements in 2014 was generally on target. We did
not see a mass Boomer exit;
however, we did track a
significant number of
retirement announcements in
the second half of 2014. This
should significantly affect the
2015 market.
We believe the increased hiring
demand in the Fall of 2014 was
due to companies preparing
for senior level retirements.
Many tax departments are taking a more proactive
role to hire Baby Boomer replacements sooner to
soften the production loss and promote a more
structured knowledge transfer process.
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2015 Global Tax Market Assessment
Employee Satisfaction –
Mentoring & Staff Development
Our assessment that tax leadership would need to
invest in proactive employee development and
mentoring programs to stave off turnover was right
on target. Proof of this came in our 2014 Career
Satisfaction Survey which was conducted after our
2014 Market Assessment prediction.
The Career Satisfaction Survey showed, for the first
time ever, the shocking truth on why staff to manager
level talent would be willing to move. In the survey,
65% of respondents were willing to entertain
alternative career opportunities and were open to
leaving based primarily on the following:
• Poor leadership
• Lack of training
• Lack of career development or mentoring
In contrast, only 15% of staff to manager positions in
total responded that money or work/life balance were
the primary reasons for potentially leaving. That
prediction was further justified by those of you who
took our advice and focused on development, training
and mentoring of staff.
Those tax departments
that invested in those
efforts weathered the
turnover storm far better
than those organizations
that chose not to develop
and mentor their talent.
Tax Reporting and Systems
We predicted there would be no easing of demand
for tax reporting skills and we were accurate.
Some believed that the continued expansion
of technology and other factors would create a
slowdown in tax reporting and systems. 2014 was a
busy hiring year as demand continued on this front.
This is the 2nd consecutive year that we accurately
predicted the growth and demand in this area of tax
would not subside.
2015
2015 Predictions
Tax Reform Uncertainty
The potential changes on the international tax
front could represent a monumental shift never
experienced before. This will ultimately affect the
global tax strategies for all US based,
multi-national companies.
International Tax
Tax reform uncertainty, country by country
reporting, and the continual effects of OECD/BEPS
are resulting in a continual demand for transfer
pricing and supply chain expertise. These are tax
specialties that we have identified as major growth
areas for the last three years and we see no signs of
slowdown. Recruitment and retention of tax staff
will be challenging in 2015.
Non-US Foreign local tax is still a wildcard and we
are unable to predict all the potential implications.
However; from a career point of view,
we are seeing more US companies
hiring people offshore to get control
of their foreign tax positions.
The bottom line is the more aggressive
non-US regulatory positions that are
being put into place from a tax point
of view will require US companies to
put more tax people on the ground in additional
overseas locations.
This trend adds an additional layer of pressure in
trying to find and retain qualified tax professionals
that can be housed offshore. Finding these
individuals with the skills to address this area
is magnified by additional challenge of talent
retention, especially in the Asia/Pacific region.
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2015 Global Tax Market Assessment
State Tax
States tend to follow the trends of U.S. federal and
international governments and the majority of
trending issues are revolving around figuring out
whether everyone can get their fair share of taxes.
(i.e. BEPS)
States are only going
to get bolder and more
aggressive in an effort to
get their fair share and we
see that contagion already
happening in the fight
over Internet taxation with
NEXUS debate.
For the tax profession,
Internet taxation policies
will have major implications. Tax professionals who
develop expertise in this area as a sub-specialization
will be ahead of the curve and be highly valuable as
this uncertain area of tax continues to play out from
the highest U.S. political positions.
Demographic Trends
As we noted in our past market assessments, the
retirement of baby boomer tax professionals will have
a massive impact on the tax profession.
There are a number of factors that are contributing
to this growing demographic exodus.
1. Improved Economic Conditions: Based on
the overall improvement in economic conditions
particularly with the stock market, many senior
tax professionals are finding themselves in a
financially secure position to make the retirement
transfer. This group of tax professionals has seen
strong and weak markets come and go and many
will opt to take advantage of their current equity
and/or liquidity position and make the transition
out of professional life.
2. Regulatory Pressures: Simply put, the tax
profession is not getting easier and corporate
budgets are getting tighter. As we have said for
many years, tax professionals and the departments
they serve, lead or manage are being asked to do
more with less. This pressure is increased when
you factor in tax reform and policy uncertainty
that will only cause further complexity and
increased workload.
Many Boomers are looking at this work/life
balance reality and making the decision that
enough is enough. Financial and company
leadership will have to incentivize and hold on
to some of these talented professionals to help
facilitate the necessary
knowledge transfer that must
occur if performance levels are
to remain intact.
3. Contract Staffing: Another
factor that may be contributing
to the Boomer exits is the
growing acceptance of
companies embracing contract
staffing assignments in the tax
function. The traditional “loaner”
staffing model is quickly shifting to an even more
common “just-in-time” staffing model that is
prevalent in so many other high value professions.
This contract model lowers the costs of the
employer/employee consulting model while
providing higher quality and consistency of talent.
Boomers that want to exit out of companies, have
a lucrative and flexible opportunity to bounce
back into the tax profession under contract based
assignments. This model helps tax departments
contain the knowledge drain while covering top
workload issues that Gen X’ers and Millenials
simply can’t handle.
Gen-x’ers are roughly half the size of the Boomers.
As these Gen-x’ers are promoted it will force the
Millennials to move up even faster to fill the
increasing vacuum left with Boomer exits.
Additionally, Millennials will have less legacy talent
to mentor and develop their careers. Millennials will
have to make a conscious effort to reach out to the
baby boomers for real knowledge transfer.
Impact on Gen X’ers:
The Generation X pool has a number of issues they
will be facing as a result of the Boomer exits.
Traditionally, Gen X’ers have been held back from
getting leadership opportunities early on in their
careers due to the Baby Boomers hold on higher
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2015 Global Tax Market Assessment
positions. Additionally, tighter tax department
budgets over the last 10-15 years have dampened
the ability to rotate staff around to broaden skillsets.
The Gen X’ers have been somewhat demotivated by
lack of advancement
opportunity and being kept
in narrow niches due to the
budget constraints for
diversifying skills and
developing additional
specialties. These factors, in
some cases, have left the the
Gen X’ers in a situation where
they are not quite ready to
take over the leadership. To
meet this growing gap, companies will need to more
proactively embrace the mentoring, development
and guidance of this talent pool.
Impact on Millennials:
This group is in an even more precarious situation
than Gen X’ers. With increased Boomer exits and
Gen-X’ers being expedited into leadership and
influence roles faster than they might be ready to
handle, the problem will be even more disruptive for
millennials who are even less ready to step up and fill
new tax function gaps.
Gen-x’ers are roughly half the size
of the Boomers. As these Gen-x’ers
are promoted it will force the
Millennials to move up even faster
to fill the increasing vacuum left
with Boomer exits. Additionally,
Millennials will have less legacy
talent to mentor and develop their
careers. Millennials will have to
make a conscious effort to reach
out to the baby boomers for real
knowledge transfer.
This may open up other challenging
issues with the generational disconnect between the
two groups. Our advice to combat this challenge is
for tax departments to connect progressive baby
boomers that can help the Millennials deal with the
demands they will face as the tax field expands in
local and global complexity. (See Mentor/Mentee
Program)
Global Indirect Taxes –
Preparing for the Coming Storm
VAT/GST
For US based companies, we strongly believe that
tax and financial leadership will be taking a hard
look at their staffing resources overseas and adding
staff that brings indirect tax expertise to the table.
We also project that the larger companies will
consider creating a global indirect tax role that
we could see being based at the US headquarters
as opposed to being kept offshore.
The demand for additional indirect tax professionals
overseas is being driven by two forces:
1. Risk Mitigation – the growing exposure that
is building as foreign entities become more
aggressive in the transfer pricing area.
2. Lost Tax Planning Opportunities – we believe
there is a growing sense that a significant amount
of money is being left on the table.
In addition, we predict that more US companies will
start taking the initiative now in addressing their
indirect tax position. In essence, these companies are
hedging their bet. They are preparing when and if the
U.S. adopts an indirect tax policy, they will be better
prepared to absorb
those changes and
pressures.
Similar to our position
on transfer pricing a
few years ago, we
may be slightly ahead
of the curve in our
prediction; however,
we firmly believe this
trend will occur
sooner than later and
some companies will
proactively prepare to be ahead of the curve on this
growing front.
The Oil & Gas Outlook
In our annual market assessments, we generally avoid
analysis within specific industries unless there is
substantial impact within the tax profession. Like we
did with the financial services sector in 2009 and 2010,
we discussed the implications in tax as it relates to a
major market downturn.
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2015 Global Tax Market Assessment
We believe it is prudent that we discuss the impact
of the current oil and gas industry market downturn.
Although it is difficult to speculate how long the oil
and gas market downturn may last, based upon recent
data, we do not see this as a longer-term trend.
However; we do believe in the short run (next 2 years)
there will be some market consolidation, mergers
and acquisitions and potentially some loss of some
permanent tax jobs within this sector.
The good news is, in the event of any layoffs for oil
and gas tax professionals, the rest of the US economy
is healthy enough to absorb this valuable workforce.
The overall demand for US tax professionals, coupled
with the fact that the specific skills of oil and gas tax
professionals are transferrable to other market sectors,
will ease the transition. This will result further help oil
and gas tax professionals in being more easily
absorbed inside other organizations.
The bottom line is that in the event oil and gas tax
professionals find themselves casualties of a lengthy
market downturn, there should be little long-term
risk of unemployment issues, especially if they are
flexible with transitioning to new locations and
industries.
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2015 Global Tax Market Assessment
A REVIEW OF
PREDICTIONS FOR 2014
EUROPE TAX MARKET
Overall hiring patterns in 2014 have seen a growth
of retained searches for in-house tax professionals
across both direct tax and indirect tax. What surprised
us this year was the massive uptick in indirect tax
recruitment across all sizes of multinational. The
biggest trend we have seen in the last year has been
the massive rise in the number of in-house indirect
tax positions being created. This is something we
predicted in our market report two years ago. There
was a slight increase in 2013, but 2014 has seen the
number of indirect tax roles overtake direct tax roles
for the first time. Across Europe - Luxembourg, Ireland
and the UK have seen an increase in the number of
multinationals looking to set up regional hubs and
headquarters.
As we predicted last year, 2014 was characterized by
general uncertainty surrounding the OECD’s plans
for BEPS and a focus on reputational risks. Tax
departments have been expected to do more with
less resources, whilst monitoring the action points
the OECD is working on. Despite this uncertainty,
there has been continued investment in tax
departments.
2014
2014 Review
EU and Switzerland
We have seen the EU and
Switzerland settle their
differences and make
peace on corporate tax
when they signed a mutual
understanding in the form
of a joint statement on
business taxation, thereby
putting an end to a controversy which has put a strain
on relations between Switzerland and the EU for
almost ten years. Nevertheless, these discussions
have had a chilling effect on the recruitment market
in Switzerland. As we highlighted in last year’s report,
Switzerland is undergoing its own tax reform
(Corporate Tax Reform III) which aims to enhance the
attractiveness of Switzerland for companies at the
international level, whilst consolidating international
acceptance of Switzerland as a business location. The
key points of the proposal are to abolish the special
cantonal tax regimes (i.e. holding companies’ regime,
as well as domiciliary and auxiliary/mixed companies’
regimes) within two years of the new legislation; and
to abolish the special federal tax treatment of the
so-called Swiss principal companies and Swiss finance
branches. It is generally predicted that Switzerland
will switch to an Irish style tax system, with a low
headline corporate tax rate in order to retain and
attract foreign multinationals.
As we predicted last year, 2014 was characterized
by general uncertainty surrounding the OECD’s
plans for BEPS and a focus on reputational risks.
Tax departments have been expected to do more
with less resources, whilst monitoring the action
points the OECD is working on. Despite this
uncertainty, there has been continued
investment in tax departments.
The declaration of intent was approved by the EU
saying it would accept the proposals. This will decrease
the international pressure on Switzerland. Some guess
the new rate will be around 13%. We will see. Have
the Swiss been browbeaten and therefore this
represents a sad time for national self-determination?
Or, is it about time this non-EU country in the heart
of the EU played fair? Although it is in a recruitment
downturn, we believe Switzerland will always find
solutions to be competitive, maybe not purely from
a corporate tax point of view, but there will be other
advantages to being there; plus the age old facts of
it being in a central location, having a secure
environment and public services that work.
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2015 Global Tax Market Assessment
Luxembourg and Ireland
Luxembourg and Ireland have
been the main beneficiaries of
the slowdown in Switzerland
with tax vacancies rocketing
up in those two countries
resulting in tough competition
to attract the limited number
of qualified candidates and the inevitable wage
inflation that comes with this. Luxembourg has come
under pressure as well, especially in the light of the
LuxLeaks. How far will the President of the European
Commission’s efforts to end corporate tax avoidance
and harmonize aspects of EU corporate taxation get
in the wake of the LuxLeaks disclosures and his
involvement in signing off on them? As for the rest
of the EU, the UK is banking on the fact that by next
year it will have the lowest corporate tax rate in the
G20. Therefore, multinationals will no longer be
tempted to shift profits to tax havens. We have seen
a number of large foreign-owned multinationals
setting up tax teams in the UK for the first time in
years. Often they are opting for locations close to but
outside of London in order to attract the high number
of London-based tax professionals.
If tax departments cannot handle the increased
workload, they will have to add permanent
headcount or rely on outside advisors. This higher
workload has also increased interest in the use of
technology. Initially, technology was important for
cutting costs, now technology is a means for
demonstrating that things are under control.
In October, Ireland confirmed new corporate residency
rules that will eventually end the “Double Irish”
schemes, so beloved of American technology and
pharmaceutical firms. The changes mark Ireland’s
most significant tax reform since it lowered the
corporate tax rate to 12.5 percent in the late 1990s to
entice companies to bring jobs to the country.
Nevertheless, Ireland has seen a marked upturn in
tax recruitment with a few large US manufacturing
multinationals moving parts of their businesses and
sometimes regional or global headquarters to Ireland,
mainly from Switzerland.
key challenges of 2014 were the design and
implementation of Tax Control Framework as well as
dispute resolution on various indirect tax issues, often
in emerging and frontier market economies.
2015
2015 Predictions
The overall market for tax professionals in Europe will
continue to grow. On the one hand, tax departments
are preparing for country by country reporting and
trying to be ready to deal with and/or influence any
further action items issued by the OECD. Tax
departments are faced with more transparency on
tax affairs not only towards tax authorities but other
stakeholders as well (NGO’s, SEC, press etc.). Increasing
visibility of the tax department often leads to bigger
budgets for hiring. If tax departments cannot handle
the increased workload, they will have to add
permanent headcount or rely on outside advisors.
This higher workload has also increased interest in
the use of technology. Initially, technology was
important for cutting costs, now technology is a means
for demonstrating that things are under control.
On the other hand, there is now increased uncertainty
in Tax and in particular supranational influences on
the tax policies of domestic governments (OECD BEPS
agenda and the EU Financial Transaction Tax). The
effect of BEPS in particular has made it hard for tax
departments to commit commercially when
governments are discussing policies that conflict
directly with how they have declared themselves
domestically. The drafting of BEPS proposals that we
have seen to date have been vague and wide ranging
in scope. This has created material uncertainty on
how it will be interpreted and applied in practice, not
to mention, the legislation will capture a large number
Tax Accounting and Indirect Tax
Tax Accounting and Indirect Tax remain key areas for
recruitment across Europe. For many companies, the
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2015 Global Tax Market Assessment
of normal commercial arrangements. Most groups
for the next 2-3 years will need to proactively revisit
their full legal, financial and contractual structures.
The concern being - don’t throw out the baby with
the bath water!
It is hard to predict how this will impact the recruitment
market, but no doubt, some will have to think hard
about where to deploy limited resources in a volatile
political landscape.
Change of Skillsets
For some businesses,
2015 will be a period
of transforming the
way tax departments
are currently managed
into something that
looks and feels more
like a Business Unit.
The skillsets will
broaden, requiring the
same high tax
technical skills and know-how, but also strong
engagement in process initiatives, low cost sourcing,
BEPS and reputational aspects. As such, stronger
project management and communication skills will
be necessary for tax professionals to cope with this
new approach in addition to the increased compliance
burden on documentation, Transfer Pricing and tax
audit management. There is no doubt, it will require
great management skills and intellect to reserve the
time for smart tax planning and execution.
Technology
Technology is about being able to show you are in
control. Or the illusion of it. The main issues, concerns
and priorities for many in 2015 are expected to be
the control processes and systems around indirect
tax systems, securing tax incentives and implementing
and standardizing Transfer Pricing Documentation.
With BEPS kicking in there will be an increased burden
on tax departments without any promise of extra
resources. This will result in a shortage of tax
professionals. The digitalization of the tax department
is one solution and we expect software packages to
become more important. Technology is playing a
more important role but now the driver is clarity and
control rather than cost saving and efficiency. Today,
the main driver is to show you have mitigated manual
mistakes, whereas in the past, using technology was
more driven by finding efficiencies and cost cutting.
Can you join the dots?
The key challenge for MNE’s is to recruit and develop
staff that can truly connect the dots to see emerging
trends in the ever more connected world of tax. This
was always a challenge, but with the BEPS agenda,
increasing co-operation amongst tax authorities that
skill is more important than ever and hard to find.
Linked to that is the need for tax
professionals to be able to work
effectively with corporate affairs/
media depar tments in
developing effective messages
around the tax affairs of the
company. It is largely incumbent
on tax professionals to educate
those departments and shape
the message on tax, balancing
the need for transparency with
the risk of swamping the
company in endless questions
from civil society.
Tax Transparency
There is a trend for multinationals, especially in the
FMCG industry to restructure into a hub model. This
is part of the process to establishing advanced pricing
agreements and rulings. For B2C companies the only
way to ensure your tax reputation remains intact is
to get agreements beforehand. Get everyone in one
room and see what is possible with the tax authorities
as openly as you can.
For more information on the European Tax Market,
please contact Will Sheppard on +44 207 432 4535 or
[email protected]
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2015 Global Tax Market Assessment
MIDDLE EAST
TAX MARKET
2014 2015
2014 Review & 2015 Predictions
Looking back at last year’s
predictions, the demand for
tax professionals did not
significantly increase but
remained steady and similar
to the previous year.
The region continues to
attract a diverse talent pool of tax professionals across
western and eastern hemispheres, most noticeably
those from accounting firms at assistant manager to
senior manager level. The benefits of working and
living in the region remain highly appealing.
Unlike the year before last, there has been less of a
trend of overseas companies establishing regional
tax teams and recruiting tax leaders. From our
perspective, 2014 has been about consolidating
existing regional tax teams through the recruitment
of more junior tax staff. However, we did observe
some companies whose Head Office is in the region,
look to recruit a Head of Tax for the first time. With
the increasing complexity of tax legislation and the
noticeable benefits of a centralized tax resource, we
predict this trend will continue into 2015 and beyond.
For further information on the Middle East recruitment
market, please contact James Preselo on +44 207 432
4536 or [email protected]
Due to increasing economic diversity in the region
and the recent fall of oil prices, 2015 may see an
increase in tax opportunities in other sectors.
The energy/oil and gas sector certainly saw the most
recruitment activity in 2014 most of which took place
in the UAE. Due to increasing economic diversity in
the region and the recent fall of oil prices, 2015 may
see an increase in tax opportunities in other sectors.
If you are looking to recruit in your team, BPA continues
to actively network and meet with high calibre tax
professionals either in or looking to move to the region
from across Europe, Africa and Asia. Our dedicated
tax focus and extensive market coverage makes us
uniquely positioned to support you. We have up to
date knowledge of salaries and market trends and
operate with complete discretion and confidentiality.
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2015 Global Tax Market Assessment
ASIA-PACIFIC
TAX MARKET
2014
2015
2015 Predictions
2014 Review
The experience gained
by locally and regionally
trained tax professionals
continues to improve
and mature. Many US
and European parented
multinationals are now
able to recruit locals with the necessary leadership,
commerciality and communication skills to take on
key roles in the region.
There has been a noticeable increase in the recruitment
of highly experienced, stand-alone Country Tax
Managers in key markets, particularly in Australia,
Singapore, India, China, Philippines and India. In all
cases, the reason appears to be having a dedicated
senior specialist in each
country, looking for ways
to add value, managing tax
input on high value deals,
raising the profile of Tax
with Senior Management,
being a focal point for the
Tax Authorities and looking
for ways to improve
processes and systems.
Once again, the challenge of defending and trying
to close open positions with the Tax Authorities will
be high on the agenda, particularly in the face of
rigorous challenges in countries ever more in need
of tax inflows.
Ensuring the roll out of GST in countries like India will
clearly be a priority for 2015. Equally important will
be managing tax risks in the region; keeping a close
eye on BEPS developments; more time spent educating
key stakeholders about Tax in the region; continuing
to work on dispute resolution in such countries as
India, China and the Philippines.
2015 will see greater standardization of controls,
processes, technology and best practices. We will see
more time spent ensuring
Tax has greater visibility at
Group level.
2014 has also seen a
significant shift in the number of US / European
parented multinationals choosing Singapore as their
APAC hub in preference to HK. Retention of staff
continues to be a key issue. Demand for the best tax
professionals remains high.
Our predictions for 2014 in last year’s Tax Market
Review have proved accurate. Tax audits and
controversy management continue to be very high
on the agenda. This generates increasing amounts of
work to be dealt with by in-house tax professionals.
The challenges of regional indirect tax reforms
continues to create further demand for high quality
APAC indirect tax specialists either making their first
move out of Big 4 or moving between companies.
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2015 Global Tax Market Assessment
LATIN AMERICA
TAX MARKET
2014
2015
2014 Review
2015 Predictions
There has been a noticeable
increase in the number of
US and European parented
companies recruiting
locally / regionally trained
experienced indirect and
direct tax professionals
across LATAM region, in
particular in Brazil, Panama, Costa Rica and Mexico.
If, as anticipated, economic growth is lower in 2015
than in previous years, this will mean more tax pressure
and a tendency to amend tax laws/regulations in
order to increase collection. A good example is the
recent tax changes in Venezuela as a result of the oil
price decline, mainly because Latin America is
vulnerable to any further impact to the international
environment.
Mainly, the need is for senior, stand-alone Regional
Tax Managers that have proven experience in raising
the profile of Tax; looking for ways to add value;
identifying and minimizing risks; recommending
systems and processes improvements and negotiating
with Tax Authorities across the region.
2015 will see more attention paid by US and European
parented multinationals on how best to co-ordinate
indirect tax across the Region. Companies will be
looking for people who have strong VAT reporting
and systems skills and who can think internationally
as well as domestically.
For more information on the Asia-Pacific or Latin
2015 will see more attention paid by US and European America tax markets, please contact Barrie Pallen on
parented multinationals on how best to co-ordinate +44 20 7432 4533 or [email protected]
indirect tax across the Region. Companies will be
looking for people who have strong VAT reporting
and systems skills and who can think internationally
as well as domestically.
This increase in tax recruitment activity is partly a
reflection of the importance attached to certain key
LATAM countries but also a reaction to the demands
of electronic filing, BEPS, the complexity and size of
TP and Tax audits, PE issues, plus other new reforms
in specific industry sector (for example in the oil and
gas sector).
Are you interested in reading
more tax reports and studies?
In general, the LATAM tax workforce is a mobile one.
Many tax professionals are willing to move from one
country to another (for example Venezuela to Panama),
partly because of the similarities between tax regime
regulations across the Region and also because of
perceived quality of life to be had by living and
working in certain countries (in contrast to the
economic, social and political problems in other
LATAM countries).
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