What’s important to the tax executive in 2025: PwC

How tax executives can unlock greater C‑suite influence

For today’s tax executive, the only certainty is the need to lean in to manage a changing tax policy world. In 2025, key individual provisions of the Tax Cuts and Jobs Act (TCJA) of 2017 expire, and changing TCJA international provisions could result in US corporate and individual tax increases. Pillar Two, an expected uptick in controversy and mounting compliance demands will further pressure tax teams with insufficient bench strength. But these evolving issues also create an opportunity for you to expand your C-suite influence by demonstrating how tax factors into all business decisions, from tariffs to credits and incentives to private equity and M&A.

In the spotlight

2025 Tax Policy Outlook: A year for action

A key challenge for business leaders this year will be to engage with policymakers and to build public support for tax and trade policies that promote economic growth, business investment, and job creation. If the business community fails to engage, the terms of the debate over the tax and trade policy choices ahead will be set without the facts and insights that the business community uniquely provides on the impact of policy choices on the US economy, business, and individuals.

More insights

15/01/25

2025 Tax Policy Outlook: A year for action

06/02/25

America in motion: How businesses can own their next move

87% of tax leaders say complying with new legislation and regulations is a challenge to achieving their priorities

^{Source: PwC Pulse Survey, October 2024}

What to focus on in 2025

Tax policy

Expect even more legislative and regulatory change

Your team needs to be poised for inevitable changes in 2025 — or potentially 2026 — as lawmakers wrestle with US and global tax policies before key TCJA individual tax provisions expire Dec. 31, 2025. Without action, key corporate rates are scheduled to automatically increase in 2026, including:

Global intangible low-taxed income (GILTI) from 10.5% to 13.125%
Base erosion and anti-abuse tax (BEAT) from 10% to 12.5%
Foreign-derived intangible income (FDII) rate from 13.125% to 16.4%

On the global stage, companies are establishing processes to comply with Pillar Two requirements and to plan for the potential of key US international business rate increases taking effect. Now is the time to model scenarios and detail the impact that policy choices may have on your company and the broader economy.

More on legislative and regulatory change

Tax policy

Preparing for a 2025 tax bill

2025 marks the beginning of a year for action on a significant “must-pass” tax bill. Bookmark this page for the latest developments.

Tax policy

Effective execution of strategy requires a tax lens

Drive home the importance of considering tax in every aspect of business strategy.

Generative AI

Leverage GenAI for enhanced tax reporting compliance

Find out how GenAI is among the ways companies are inserting efficiency and accuracy into their tax reporting and compliance process.

31% of US CEOs say the regulatory environment is the biggest impediment to creating value

Source: US CEO views from PwC’s 27th Annual Global CEO Survey

Compliance

Prepare for an uptick in tax controversy

Countries are intensifying their search for revenue, leading to an unprecedented surge in tax authority audits and litigation. US federal, state and foreign governments are escalating their efforts, with jurisdictions increasingly coordinating and sharing information. This growing demand for transparency heightens the risk of reputational damage. An adverse dispute can attract greater scrutiny from tax authorities and strain relationships with other regulatory bodies.

Stay ahead of potential issues by boosting operational efficiency and leveraging technology for scenario planning. AI can assist in identifying and tracking evolving tax regulations. Combining this capability with collaborative technologies, early risk identification, audit readiness and transfer pricing solutions can help prepare your company for regulatory change.

Ways you can prepare for increased tax controversy

Compliance

Reinventing the tax function’s talent model

Discover how tax functions can achieve greater ROI by reinventing the tax talent model with tax management services.

Compliance

Prepare now or pay more later: The power of tax controversy managed services

Find out how tax controversy managed services can help companies proactively handle audits, mitigate risks, and more.

AI and analytics

Unlocking more ROI with AI

Listen in on our discussion of how AI technologies not only improve cost and efficiency but also enhance strategic insights and decision-making capabilities.

International tax

Navigating change: Steer your company through the effects of Country-by-Country Reporting

Navigate Country-by-Country Reporting complexities, ensure compliance, align with Country-by-Country Reporting (CbCR) requirements, create a proactive strategy with actionable steps.

89% of tax leaders say managing new tax risks poses a significant or somewhat of a challenge to achieving their priorities

Source: PwC Pulse Survey, October 2024

Capital markets

Guard against tax surprises in private capital

Corporations aren’t the only entities bracing for tax changes in 2025. Tax executives at private companies and in private capital — from private equity and venture capital to real estate — could also be affected. Portfolio companies, for example, could still face potential corporate tax rate increases and Pillar Two.

Navigating these challenges requires discussions on operating models to help to control costs, structuring transactions for tax efficiency, identifying potential savings and managing compliance. Although deal activity has remained sluggish in 2024, the focus on value creation remains strong with investors eager to put cash to work.

Tax can be integrated into the strategy at every stage of the investment cycle, considering each global location. Effective tax planning can enhance liquidity, for example, and directly impact return on investment (ROI).

Additional information on private capital tax changes

Capital markets

Elective state taxes highlight the need for a comprehensive tax approach in private capital

Learn how US private capital firms are navigating state PTE taxes after federal reform.

Tax policy

Tax readiness: Navigating post-election tax implications for asset management

Join us for a CPE eligible webcast exploring the critical post-election implications for stakeholders across asset management.

Tax policy

2024 election: Tax implications for private companies

This webcast outlines what private and private equity-backed company executives need to know about the evolving tax landscape post-election. CPE eligible.

Tax policy

Year-end tax and wealth planning for individuals and family offices

This CPE-eligible webcast provides high-net-worth individuals, private company founders and owners actionable insights into tax and wealth planning.

Understand your current tax footprint to determine where potential changes in legislation would require you to take action.

Amy McAneny, PwC Private Equity Tax Partner

Workforce

Find new ways to develop and retain talent

It can be challenging to develop and retain a core base of talent as industry reports show that the number of CPAs continues to decline. In other instances, hiring freezes and layoffs may also reduce the number of tax professionals. To position your function for success, consider how you can help your team build a diverse skillset, look for professionals with nontraditional experience like technologists, project managers and data analysts, and equip all your staff with the right technology. For example, data automation tools can coalesce real-time data from enterprise-wide platforms for better decision-making, while generative AI and other emerging technology can help deliver efficiencies.

Managed services, outsourcing or co-sourcing models can also provide access to additional talent, processes and technology to help fill the gaps in your tax department.

More on developing and retaining talent

Workforce

Trusted data: 5 essential considerations for the tax department

Data implementation can accelerate business strategy. Learn how recent data trends can shape tax businesses, lower risk and increase opportunities.

Workforce strategy

Workforce Radar: To build the workforce of tomorrow, the time to act is now

Learn about the five workforce signals leaders can act on to successfully drive their desired workforce transformation and business outcomes.

Generative AI

Enhance tax reporting and compliance with GenAI

GenAI is among the ways companies are inserting efficiency and accuracy into their tax reporting and compliance process.

45% of employees say their workload has significantly increased in the last 12 months

Source: PwC’s Global Workforce Hopes and Fears Survey 2024

Strategy

Expand your influence by enhancing cashflow

Tax is becoming a central focus in business decision-making as the C-suite seeks timely insights to guide investment decisions, explore new markets and identify cash sources. Strategically leveraging tax incentives and re-evaluating your tax accounting methods could help you reduce operating costs, increase the ROI and improve cash flow.

Research and development credits can fuel innovation, while green incentives under the Inflation Reduction Act can fund sustainability initiatives. Monetization provisions, such as direct payment and transferability of tax credits, offer alternative financing structures for investments. However, fragmented data sources or outdated systems may impede the information gathering necessary to be a strategic business partner. By investing in technology for modeling and analytics, you can accelerate decision-making, meet increasing compliance demands and strengthen your relationships across the enterprise.