Home > Media & Technology > Information Technology > IT Software > Tax Management Market
Tax Management Market Analysis
- Report ID: GMI5450
- Published Date: Mar 2023
- Report Format: PDF
Tax Management Market Analysis
The solution segment held over 60% tax management market share in 2022, owing to the increased integration of cloud platforms into end-user ERP systems by solution providers. To cite an instance, in April 2022, Intuit Inc., a business software company, along with Cin7, a cloud-based IMS giant, announced plans to launch a new strategic product bundle with Intuit’s Quickbooks, TurboTax, Mint, Credit Karma, Mailchimp software. The partnership is aimed at helping businesses with cloud switches and digitalization.
The tax management market size from the cloud deployment model segment is anticipated to reach USD 30 billion by 2032, propelled by the quick transition towards digitization across all industries and integrated cloud solutions by tax management providers to comply with governments’ tax transparency model. In October 2022, Sage Intact, an accounting technology firm, announced the integration of Microsoft Teams with its cloud services and capabilities to simplify and automate workflows for SMEs.
With respect to application, the tax management market size from the BFSI segment held over USD 5 billion in 2022. With the emergence of new tax slabs and evolving tax compliance, almost all corporate and personal taxes are withheld from an individual's salary, which is anticipated to increase tax revenue, thereby bolstering the demand for tax management in the BFSI sector. Recently under the Indian Union Budget 2023-2024 published in February 2023, direct taxes were reduced from middle-income groups while extending the Credit Guarantee Fund Trust for Micro and Small Enterprises scheme with more than USD 1 billion, providing additional revenue.
The tax management market from the indirect tax segment accounted for 50% revenue share in 2022, attributed to the rising expenditure on retail and consumer products, fueling the GST across regions. According to the U.S. Bureau of Economic Analysis 2022 report, the United States consumer spending increased by 2% in inflation-adjusted personal consumption in 2022 despite the growing prices of products. Additionally, the market for indirect taxes is also driven by surging investments in manufacturing, smart cities, etc.
Based on organization size, the tax management market revenue from SMEs segment will cross USD 25 billion by 2032. Solution providers are placing a greater emphasis on offering integrated products and services by delivering financial management compliance and teaming up to support SMEs, which is benefitting the industry progression. In February 2022, IncSight, a cloud-based advisory firm, commissioned Xero Inc., to introduce efficiency-driving tools and streamline compliance & aid small businesses with accounting solutions in the U.S. states.
The North America tax management market will reach USD 20 billion by 2032, on account of rapid adoption of cloud-based ERP systems among large firms in the region. Also, as the United States generates most of the tax money, tax management firms are focusing on extending their business in the country. In January 2023, Thomson Reuters, a provider of business information services, completed the acquisition of SurePrep, LLC, a US-based tax automation software and services company. The acquisition is aimed to expand the product portfolio and customer reach in the U.S. market.
Frequently Asked Questions (FAQ) :
Tax Management Market Scope
