Navigating indirect tax challenges in tech
The technology industry is moving at lightening speed, but indirect tax teams are often stuck battling outdated systems, complex global regulations, and mounting compliance risks. Did you know that 62% of tech tax teams spend most of their time reacting to issues instead of planning strategically, and under-resourced departments are 72% more likely to be audited?
With digital business models, constant regulatory changes, and a shrinking talent pool, the stakes have never been higher. Discover how leading tech companies are leveraging automation and smarter data integration to turn these challenges into strategic advantages.
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The technology industry is moving at lightning speed, but indirect tax teams are often stuck battling outdated systems, complex global regulations, and mounting compliance risks.
With digital business models, constant regulatory changes, and a shrinking talent pool, the stakes have never been higher. Discover how leading tech companies are leveraging automation and smarter data integration to turn these challenges into strategic advantages.
Under-resourced departments are 72% more likely to be audited
62% of tech tax teams spend most of their time reacting to issues instead of planning strategically
Did you know
Tech’s legacy problem
Factors preventing tech enhancement
Top three reasons indirect tax departments struggle
88% of tech companies are stuck in manual mode
Tech companies drive innovation in every sector. Except their own tax processes. Despite leading the digital revolution, 88% of tech firms (from <$50M to $6B revenue) have automated less than 50% of their tax workflows. Legacy systems, fragmented data, and outdated tools create a “tech debt” that slows compliance, increases errors, and drains IT resources.
Tech’s legacy problem
36%
Top three reasons indirect tax departments struggle
What’s holding back tax automation?
Staffing shortages
16%
Org/leadership challenges
16%
16%
Regulatory changes
Factors preventing tech enhancement
Lack of time to procure new tech
67%
Tech departments face a triple threat:
Budget constraints
65%
65%
Human capital shortages
Why it matters
Manual processes delay reporting, miss compliance deadlines, and force teams into reactive mode.
Bonus pain point
41% lack the tech skills needed to implement modern solutions.
16%
Regulatory Changes
Result
Teams are stretched thin, with fewer experts to manage complex tax rules.
Attrition rates in tax departments
Expensive consequences
Event horizon
of financial leaders report talent shortages (up from 70% in 2022).
83%
Attrition rates in tax departments
A crisis of talent and expertise
70–80%
of accountants have left the profession.
Accounting BA degrees fell
7.8%
MA degrees fell
6.4%
Declining Graduates:
Sources:
Thomson Reuters (2024), CFO Pulse Survey (2025), Forbes (Whitmire, 2025), Torrington (2024).
Thomson Reuters. (2024). 2024 Generative AI in Professional Services. Toronto: Thomson Reuters.
Thomson Reuters. (2024). State of the Corporate Tax Department Survey 2024. Toronto: Thomson Reuters.
Thomson Reuters. (2025). 2025 Corporate Tax Technology Report. Toronto: Thomson Reuters.
Torrington, M. (2024). CFO Pulse Survey 2024: Addressing The Accounting Talent Shortage. Austin: Personiv.
Whitmire, M. (2025). Mind The Gap: Addressing The Finance And Accounting Talent Gap in 2025. Forbes.
Amy Webb. (2025). Future Today Strategy Group 2025 Tech Trends Report. Balitmore: FTSG.
Expensive consequences
Under-resourced = high-risk
of under-resourced departments face audits.
72%
incur penalties with 69% costing $10K–$50K per violation. (Thomson Reuters, 2024)
50%
94% of corporate tax professionals are hopeful (73%) or excited (21%) about the future of tax technology.
(Thomson Reuters, 2025)
73%
The cost of inaction
Manual errors, missed deadlines, and reputational damage.
Hopeful
Excited
21%
Event horizon
Hopeful + excited = opportunity
See how your team can break free from manual chaos and future-proof your compliance strategy.
Dive into our full eBook for actionable insights, real world success stories, and a step-by-step roadmap to tax technology transformation. Don’t let your tax team fall behind.
The ripple effect
Under-resourced teams spend more time firefighting, less time strategizing.
So how do you get there?
See how your team can break free from manual chaos and future-proof your compliance strategy.
Dive into our full e-book for actionable insights, real world success stories, and a step-by-step roadmap to tax technology transformation. Don’t let your tax team fall behind.
Amy Webb, CEO Future Today Strategy Group
"The gap between leaders and laggards will widen dramatically, not over decades, but months."
16%
Regulatory changes
16%
16%
Org/leadership challenges
Top three reasons indirect tax departments struggle with tactical and reactive work
The ripple effect
Under-resourced teams spend more time firefighting, less time strategizing.
#1
Staffing shortages ranked highest
#2
#3
Org/leadership challenges
Regulatory changes
By comparison, a distant second and third