Digital Strategy and Operations (DSO)

Change isn’t coming. It’s already here.

The changing landscape of tax can present many challenges to organisations in the Middle East - and the tax function is set to transform as organisations adapt to an increasing digitised environment. More and more organisations are turning to technology to help navigate increasing global compliance requirements, inefficient processes, alleviate strained resources and manage risk.

Finding the right technology however, can be a challenge in itself. Our clients need advisors who can help simplify the process and find the solution that is right for them.

The Tax Function of Tomorrow is set to transform, and we are here to help Middle East organisations, every step of the way.

Middle East tax landscape

A rapid evolution

The tax landscape is changing at an unprecedented rate in the Middle East. The recent implementation of VAT across many of the GCC countries - with more yet to come - has put significant additional compliance requirements on organisations with operations here.

The rate of pace of change is showing little sign of slowing down and, coupled with the longer-term impacts of COVID-19, tax is expected to continue its evolution.

Compliance requirements

Increasing compliance requirements and subsequent risk of penalties

As the requirements for tax compliance continue to grow, so does the level of risk.

Here in the Middle East, we have seen many instances of severe non-compliance penalties. Many of these risks are avoidable, and are often due to oversights or inefficient processes. Applying the right amount of rigour can be a time consuming job when done manually, but technology can considerably ease that burden, as well as reduce the risk of human error.

Tax authorities

Tax authorities are investing in new technology

Technology is an escalating trend, particularly in the wake of the global pandemic, as organisations look to create leaner and more efficient processes.

In order to deal with the increased activities and monitoring around tax compliance, many governments are investing in new technologies to help manage and track compliance. This has two main implications for businesses:

The speed and accuracy with which compliance can be monitored is increasing, meaning less allowance for errors
Increased need to upscale processes and systems may be required in order to comply properly.

Taking a lead from many authorities around the world, we can expect to see a continued trend towards more digitised processes for tax compliance, from e-invoicing, to real-time reporting.

E-invoicing

The evolution of the tax authorities in the Middle East is accelerating. Over the last few years we have seen significant strides in the way that authorities implement and manage taxes across the region. E-Invoicing is a major step in this process and organisations will need to respond quickly in order to maintain compliance and avoid penalties. We have been working closely with both governments and organisations to help them navigate the changes and requirements that digitisation brings.

Benefits of e-Invoicing:

Cost savings (paperless)
Automation & integration
Great efficiency and removal of human error
Faster invoice delivery
Enhanced security
Quick, secure legal archiving

Learn more

As digitisation moves up the tax agenda, it’s important not to assume a ‘one size fits all’ approach. Technology roadmaps should first and foremost be based around the individual needs of an organisation.

Jay RicheTLS Digital Solutions Leader

The Tax Lab

As the evolving tax landscape continues to impact many finance function operations and presents challenges in respect of risk and overall compliance, it is important not to adopt a one-size-fits all approach. this is why the PwC Digital Strategy and Operations (DSO) team have designed the ‘Tax Lab’.

Our purpose built lab enables clients to test and see demonstrations of our innovative technology solutions. Each finance function’s tax journey is different and unique to organisation-specific requirements. Therefore we do not adopt a one-size-fits all approach, and instead focus on the how we can solve the problems, in areas such as a risk, data management, governance and overall efficiency of a tax function. This can take many forms, from determining how to optimize existing systems that you may have already invested in, to reviewing purpose built tax engines to employing smart automation solutions such as Robotic Process Automation.

What can tax technology accomplish?

Track and analyse trends

Create accessible and transparent data

Bridge system gaps and enable ERP solutions

Accomplish more with less

Minimise risk and maximise opportunity

Reduce errors, tax and penalties

Establish careful governance structure and controls

Technology maturity. Where does your organisation sit?

Tax Reporting & Strategy (TRS)

Regulatory requirements are increasing, business and finance transformation is commonplace, and tax authorities and boards are demanding that tax risks are effectively managed. We’re helping clients build a sustainable tax strategy for the future. Our complete approach to tax management brings together tax function design, technology and compliance delivery to help you understand and meet these challenges head-on.

Click here to find out more

Digital Donuts podcast series

The tax landscape is rapidly evolving and many organisations are turning to technology to help them with the growing compliance requirements.

Digital Donuts is our new podcast series, led by Jay Riche, Partner & Digital Strategy and Operations (DSO) Leader, in which we examine the changes that are taking place across the Middle East and the role that technology can play both now and in the future.

A tailored approach

Across the Middle East, organisations are in varying stages of their technology journeys and have their own unique requirements according to their operations.

Putting you first…

Our team offers a consultative approach, with your needs at the centre. We review, advise, design and build technology operations that ensure you get the most out of your tax function and your team, both now and in the future.

Want to discuss tax technology with us?

Let one of our experts contact you!

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