Tax Management Market by Component (Software and Services), Tax Type (Indirect Tax and Direct Tax), Deployment Mode (Cloud and On-premises), Organization Size (SMEs and Large Enterprises), Vertical, and Region - Global Forecast to 2024

Abstract
Increasing volume of financial transactions across verticals due to digitalization, complex nature of the tax system, and vigilance of tax administrators.

The global tax management market is expected to grow from USD 15.5 billion in 2019 to USD 27.0 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 11.7% during the forecast period. Factors driving the growth of the tax management market include the increasing volume of financial transactions across verticals due to digitalization, complex nature of existing tax system, and increased vigilance of tax administrators.

Small and medium-sized enterprises segment to grow at a higher CAGR during the forecast period

The intensely competitive market scenario has encouraged Small and Medium-sized Enterprises (SMEs) to adopt tax management software and services for faster and cost-effective compliance. For instance, the Internal Revenue Service (IRS) estimates that businesses with less than USD 1 million in revenue have to incur almost two-thirds of business compliance costs. Usually, such costs are larger, relative to revenues or assets, for SMEs than for large enterprises. Additionally, due to the complex tax codes, SMEs can understate their revenues and overstate their expenses and thus underpay their taxes. These challenges have further driven the adoption of tax management software and services from SMEs.

Banking, Financial Services and Insurance vertical to hold the highest market share in 2019

Banking, Financial Institutes and Insurance (BFSI) is a vertical characterized by the digitalization and an increasing number of customers using various banking applications. This has resulted in the exponential growth of data in the banking and financial services vertical. Government regulations in this sector are complex and sensitive. BFSI includes domestic and foreign banks, insurance and reinsurance companies, asset management companies, non-banking finance companies. Increasing number of financial transactions is one of the major factors driving the adoption of tax management software in the BFSI vertical.

Asia Pacific tax management market to grow at the highest CAGR during the forecast period

The high growth of the market in Asia Pacific (APAC) is attributed to the increasing adoption of tax management software to match the rapid pace of advancement. However, low awareness about the benefits of tax management software and services poses a big hurdle in tax management software adoption across the region.

In-depth interviews were conducted with the Chief Executive Officers (CEOs), Chief Marketing Officers (CMO), Vice Presidents (VPs), Managing Directors (MDs), technology and innovation directors, and related key executives from various key companies and organizations operating in the tax management market.

? By Company – Tier 1–10%, Tier 2–25%, and Tier 3–65%

? By Designation – C-Level Executives–40%, Director Level–35%, and Others–25%

? By Region – North America–40%, Europe–30%, and APAC–20%, RoW – 10%

The tax management market comprises major providers, such as Avalara (US), Automatic Data Processing (US), Wolters Kluwer N.V (Netherlands), Thomson Reuters (Canada), Intuit (US), H&R Block (US), SAP SE (Germany), Blucora (US), Sovos Compliance (US), Vertex (US), Sailotech (US), Defmacro Software (India), DAVO Technologies (US), Xero (New Zealand), TaxSlayer (US), Taxback International (Ireland), TaxCloud (US), Drake Enterprises (US), Canopy Tax (US), and TaxJar (US). The study includes an in-depth competitive analysis of these key players in the tax management market with their company profiles, recent developments, and key market strategies.

Research Coverage

The tax management market revenue is primarily classified into revenues from software and services. The market is also segmented by tax type, deployment mode, organization size, vertical, and region.

Key benefits of the report

The report would help market leaders/new entrants in this market with the information on the closest approximations of the revenue numbers for the overall tax management market and the subsegments. This report would help stakeholders understand the competitive landscape and gain insights to better position their businesses and plan suitable go-to-market strategies. The report would also help stakeholders understand the pulse of the market and provide them with information on the key market drivers, restraints, challenges, and opportunities.

Content
TABLE OF CONTENTS

1 INTRODUCTION 17
1.1 OBJECTIVES OF THE STUDY 17
1.2 MARKET DEFINITION 17
1.2.1 INCLUSIONS AND EXCLUSIONS 17
1.3 MARKET SCOPE 18
1.3.1 MARKET SEGMENTATION 18
1.3.2 REGIONS COVERED 18
1.3.3 YEARS CONSIDERED FOR THE STUDY 19
1.4 CURRENCY CONSIDERED 19
1.5 STAKEHOLDERS 19
2 RESEARCH METHODOLOGY 20
2.1 RESEARCH DATA 20
2.1.1 SECONDARY DATA 21
2.1.2 PRIMARY DATA 21
2.1.2.1 Breakup of primary profiles 21
2.1.2.2 Key industry insights 22
2.2 MARKET BREAKUP AND DATA TRIANGULATION 22
2.3 TAX MANAGEMENT MARKET SIZE ESTIMATION 23
2.4 MARKET FORECAST 24
2.5 COMPETITIVE LEADERSHIP MAPPING RESEARCH METHODOLOGY 25
2.5.1 VENDOR INCLUSION CRITERIA 25
2.6 ASSUMPTIONS FOR THE STUDY 26
3 EXECUTIVE SUMMARY 27
4 PREMIUM INSIGHTS 32
4.1 ATTRACTIVE MARKET OPPORTUNITIES IN THE TAX MANAGEMENT MARKET 32
4.2 NORTH AMERICA TAX MANAGEMENT MARKET, BY COMPONENT AND COUNTRY 32
4.3 TAX MANAGEMENT MARKET: MAJOR COUNTRIES 33
5 MARKET OVERVIEW AND INDUSTRY TRENDS 34
5.1 INTRODUCTION 34
5.2 MARKET DYNAMICS 34
5.2.1 DRIVERS 35
5.2.1.1 Increasing volume of financial transactions across verticals due to digitalization 35
5.2.1.2 Complex nature of the tax system 35
5.2.1.3 Vigilance by tax administrators 35
5.2.2 RESTRAINTS 36
5.2.2.1 Increasing theft of confidential data 36
5.2.3 OPPORTUNITIES 36
5.2.3.1 Use of the blockchain technology 36
5.2.4 CHALLENGES 36
5.2.4.1 Regular amendments in tax laws 36
5.2.4.2 Lack of standardized tax rules 37
5.3 USE CASES 37
5.3.1 CASE STUDY 1: INTEGRATION OF TRANSACTION TAX PROCESSES WITH OTHER FINANCE APPLICATIONS FROM DIFFERENT GEOGRAPHIC LOCATIONS 37
5.3.2 CASE STUDY 2: IMPLEMENTING AUTOMATED SALES TAX CALCULATION SOLUTION TO COMPLY WITH TAX RATES OF EACH COUNTRY 38
5.3.3 CASE STUDY 3: ADDRESSING VAT/GST CHALLENGES BY IMPLEMENTING AUTOMATIC VAT RECOVERY AND COMPLIANCE SOLUTION 38
5.4 MONETIZATION MODEL 39
5.4.1 SCALABLE PRICING MODEL 39
5.4.2 PAY PER RETURN POLICY 39
5.4.3 FREEMIUM PRICING MODEL 39
6 TAX MANAGEMENT MARKET, BY COMPONENT 40
6.1 INTRODUCTION 41
6.2 SOFTWARE 42
6.2.1 SOFTWARE: TAX MANAGEMENT MARKET DRIVERS 42
6.3 SERVICES 43
6.3.1 SERVICES: GLOBAL TAX MANAGEMENT MARKET DRIVERS 43
7 TAX MANAGEMENT MARKET, BY TAX TYPE 44
7.1 INTRODUCTION 45
7.2 INDIRECT TAX 46
7.2.1 INDIRECT TAX: TAX MANAGEMENT MARKET DRIVERS 46
7.3 DIRECT TAX 47
7.3.1 DIRECT TAX: TAX MANAGEMENT MARKET DRIVERS 47
8 TAX MANAGEMENT MARKET, BY DEPLOYMENT MODE 48
8.1 INTRODUCTION 49
8.2 CLOUD 50
8.2.1 CLOUD: TAX MANAGEMENT MARKET DRIVER 50
8.3 ON-PREMISES 51
8.3.1 ON-PREMISES: TAX MANAGEMENT MARKET DRIVERS 51

9 TAX MANAGEMENT MARKET, BY ORGANIZATION SIZE 52
9.1 INTRODUCTION 53
9.2 SMALL AND MEDIUM-SIZED ENTERPRISES 54
9.2.1 SMALL AND MEDIUM-SIZED ENTERPRISES: TAX MANAGEMENT MARKET DRIVERS 54
9.3 LARGE ENTERPRISES 55
9.3.1 LARGE ENTERPRISES: TAX MANAGEMENT MARKET DRIVERS 55
10 TAX MANAGEMENT MARKET, BY VERTICAL 56
10.1 INTRODUCTION 57
10.2 BANKING, FINANCIAL SERVICES AND INSURANCE 58
10.2.1 BANKING, FINANCIAL SERVICES AND INSURANCE: TAX MANAGEMENT MARKET DRIVERS 58
10.3 IT AND TELECOM 59
10.3.1 IT AND TELECOM: TAX MANAGEMENT MARKET DRIVERS 59
10.4 MANUFACTURING 60
10.4.1 MANUFACTURING: TAX MANAGEMENT MARKET DRIVERS 60
10.5 ENERGY AND UTILITIES 61
10.5.1 ENERGY AND UTILITIES: TAX MANAGEMENT MARKET DRIVERS 61
10.6 RETAIL 62
10.6.1 RETAIL: TAX MANAGEMENT MARKET DRIVERS 62
10.7 HEALTHCARE AND LIFE SCIENCES 63
10.7.1 HEALTHCARE AND LIFESCIENCES: GLOBAL TAX MANAGEMENT MARKET DRIVERS 63
10.8 MEDIA AND ENTERTAINMENT 64
10.8.1 MEDIA AND ENTERTAINMENT: TAX MANAGEMENT MARKET DRIVERS 64
10.9 OTHERS 65
11 TAX MANAGEMENT MARKET, BY REGION 66
11.1 INTRODUCTION 67
11.2 NORTH AMERICA 68
11.2.1 NORTH AMERICA: TAX MANAGEMENT MARKET DRIVERS 68
11.2.2 UNITED STATES 71
11.2.3 CANADA 73
11.3 EUROPE 74
11.3.1 EUROPE: TAX MANAGEMENT MARKET DRIVERS 74
11.3.2 UNITED KINGDOM 77
11.3.3 GERMANY 79
11.3.4 FRANCE 80
11.3.5 REST OF EUROPE 82

11.4 ASIA PACIFIC 84
11.4.1 ASIA PACIFIC: TAX MANAGEMENT MARKET DRIVERS 84
11.4.2 CHINA 87
11.4.3 JAPAN 89
11.4.4 INDIA 90
11.4.5 REST OF ASIA PACIFIC 92
11.5 MIDDLE EAST AND AFRICA 94
11.5.1 MIDDLE EAST AND AFRICA: TAX MANAGEMENT MARKET DRIVERS 94
11.5.2 SOUTH AFRICA 96
11.5.3 SAUDI ARABIA 98
11.5.4 REST OF MIDDLE EAST AND AFRICA 100
11.6 LATIN AMERICA 101
11.6.1 LATIN AMERICA: TAX MANAGEMENT MARKET DRIVERS 101
11.6.2 BRAZIL 104
11.6.3 MEXICO 106
11.6.4 REST OF LATIN AMERICA 107
12 COMPETITIVE LANDSCAPE 110
12.1 INTRODUCTION 110
12.2 COMPETITIVE SCENARIO 111
12.2.1 NEW PRODUCT/SOLUTION LAUNCHES AND PRODUCT ENHANCEMENTS 111
12.2.2 BUSINESS EXPANSIONS 112
12.2.3 ACQUISITIONS 112
12.3 COMPETITIVE LEADERSHIP MAPPING 113
12.3.1 VISIONARY LEADERS 113
12.3.2 DYNAMIC DIFFERENTIATORS 113
12.3.3 INNOVATORS 113
12.3.4 EMERGING COMPANIES 114
13 COMPANY PROFILES 115
13.1 INTRODUCTION 115
13.2 AVALARA 115
(Business Overview, Products and Solutions Offered, SWOT Analysis, Recent Developments, Organic Growth Strategies, and Inorganic Growth Strategies)*
13.3 ADP 118
13.4 INTUIT 121
13.5 THOMSON REUTERS 123
13.6 WOLTERS KLUWER 126
13.7 BLUCORA 129
13.8 H&R BLOCK 131
13.9 SAP 132
13.10 SOVOS 134
13.11 VERTEX 136
13.12 CANOPY TAX 138
13.13 DAVO TECHNOLOGIES 138
13.14 DEFMACRO SOFTWARE 139
13.15 DRAKE SOFTWARE 139
13.16 SAILOTECH 140
13.17 TAXBACK INTERNATIONAL 140
13.18 TAXCLOUD 141
13.19 TAXJAR 141
13.20 TAXSLAYER 142
13.21 XERO 142
*Details on Business Overview, Products and Solutions Offered, SWOT Analysis, Recent Developments, Organic Growth Strategies, and Inorganic Growth Strategies might not be captured in case of unlisted companies.
13.22 RIGHT TO WIN 143
14 APPENDIX 144
14.1 INSIGHTS OF INDUSTRY EXPERTS 144
14.2 DISCUSSION GUIDE 145
14.3 KNOWLEDGE STORE: MARKETSANDMARKETS’ SUBSCRIPTION PORTAL 151
14.4 AVAILABLE CUSTOMIZATIONS 153
14.5 RELATED REPORTS 153
14.6 AUTHOR DETAILS 154