How Managed Services can help you overcome your tax compliance challenges

The pace of change is relentless. Tax functions face mounting regulatory burdens alongside the growing complexity of cross-border compliance. They are under pressure to adapt rapidly while maintaining efficiency and accuracy in their reporting. 

As the demands on tax functions grow, requiring new and evolving skills, recruiting the right people for critical tasks becomes increasingly challenging. Many organisations report that their people are often tied up in non-value-added activities, preventing them from playing a more strategic role. Similarly, accessing the right technology is becoming crucial to drive efficiency and effectiveness in tax reporting. This is where a partnership with a MSP can be invaluable. The move to an MSP is not just about leveraging people but also about harnessing advanced technology. Having access to a robust and flexible technology ecosystem that prioritises connectivity, agility, and expertise is essential to navigate the complexities of modern tax functions.

It’s important to recognise that managed services have evolved in recent years. A standout MSP is no longer simply about providing low-cost labour to handle repetitive tasks. Instead, it’s about having a strategic partner that can integrate with your business, align with your objectives, and provide the tools and talent to navigate rapid change.

The best MSPs build trust by acting as an extension of their client’s team. They connect functions, ensure compliance across boundaries, stimulate innovation, and proactively address risks. This can be especially critical in industries and regions where reputation is paramount. By managing end-to-end compliance, MSPs provide peace of mind, allowing businesses to focus on growth without sacrificing trust or accuracy. In addition, operating or running a tax function through an MSP can generate significant cost savings, which can provide the funds for wider finance or tax transformation that may have been on hold in a time when investment dollars are often limited. 

Companies seeking growth and exploring fast-growing markets like the Middle East must prioritise agility. The region is undergoing significant regulatory changes, including the introduction of corporate income tax (CIT) in the UAE, mandatory e-invoicing and the long-anticipated implementation plan of Pillar 2 rules.

Having a MSP on hand is crucial for staying ahead of these changes and ensuring that growth ambitions and regulatory pressures are met. MSPs offer the expertise and flexibility needed to navigate complex legal, financial, and compliance landscapes, allowing businesses to focus on their strategic initiatives and move at speed.

MSPs like PwC provide a one-stop-shop to handle the end-to-end tax compliance complexities of operating in a territory, both in the present and as things continue to evolve. This proactive approach not only helps maintain compliance but also enables organisations to move quickly on growth strategic initiatives. Leveraging an MSP allows for the conversion of fixed costs into variable expenses, enabling the scaling of support to match changing needs. This adaptability is particularly valuable in dynamic and fast-paced environments. An MSP can be instrumental in helping companies navigate these changes effectively and with agility.

The integration of AI and data analytics into tax functions is transforming the way tax compliance and reporting are managed. Tax professionals must now be adept at using data management tools, understanding AI promptings, and leveraging these technologies to enhance accuracy and efficiency. This shift not only requires technical expertise but also a strategic mindset to interpret data insights and apply them effectively. But it is not just new AI and data skills. Given the breadth of tax functions, many tax professionals also increasingly need to be adept at project management, controls design and monitoring, and scenario planning skills. All areas that may not have been needed in such depth previously.

This, combined with the cyclical nature of compliance, which means ‘peaks and troughs’ in resource demand, can be tricky and costly to handle in-house. MSPs can help fill these gaps, dialling up and down specialists through access to a global pool of resources — who not only offer advice but also act as an extension of the in-house team. They bridge knowledge gaps, simplify complexities, and provide real-time insights that allow businesses to focus on growth.

They can also go further. As a strategic partner, an MSP can provide invaluable expertise for training a company’s own people and even help with recruitment. Our Tax Managed Services teams can digitally upskill an organisation’s tax staff or transition their staff to PwC, enabling them to scale up the resources they need in a seamless manner while still having team continuity. 

Modern tax functions demand robust, integrated technology ecosystems. A single tool rarely satisfies the complex demands of compliance across geographies and business units. Instead, a ‘technology ecosystemOpens in a new window’ — one that integrates tools from a variety of trusted partners— can deliver far more effective outcomes. 

Imagine a technology ecosystem that acts as your collaboration and reporting process monitoring tool across all aspects of compliance reporting. One that provides insights, allows you to pre-empt compliance issues in real-time and assess data quality, with inbuilt reporting tools that are already trained for specific tax requirements to ensure trusted reporting.

MSPs provide access to cutting-edge tools that are constantly updated to reflect the latest regulatory changes and industry best practices, ensuring that businesses remain compliant and can focus on their core operations while leveraging the expertise and technology provided by the MSP. 

MSPs also connect siloed systems, creating a unified view of tax and compliance across geographies and business units. This integration doesn’t just reduce costs — it transforms how businesses operate, enabling agility and better decision-making.

As the global regulatory landscape becomes increasingly complex, the importance of having a partner who can provide strategic insights, ensure compliance, and drive innovation — all while empowering internal teams — will become critical.

Partnering with PwC Managed Services can be the strategic move that organisations facing resource constraints, needing advanced technology, or aiming to stay ahead of regulatory changes need. Our partnership with Booking.com demonstrates how we help businesses ensure compliance. Through the provision of a standardised system for statutory financial statements and corporate income tax returns, our collaboration has enabled Booking.comOpens in a new window to maintain clear oversight and adapt to varying standards required in different countries.

Our PwC Legal Managed Services, Global Risk and Compliance teams work with Renault in establishing a robust legal and compliance model. The team established and continually enhance and run Renault's digital management platform to streamline processes, improve efficiency and transparency in compliance.

By collaborating with PwC, we can help you and your organisation optimise costs, ensure compliance, and drive innovation in your tax functions.