Deloitte: Tax reporting complexity remains the top challenge for multinational companies

The complexity of tax regulations, particularly those related to transparency and reporting requirements, remains the most significant tax policy challenge facing multinational companies (65%) for the third consecutive year, while most organizations (84%) expect these obligations to become even more stringent over the next two to three years, according to the Deloitte 2026 Global Tax Policy Survey. Therefore, 40% of respondents identify increasing compliance requirements as the factor with the highest impact on business operations. At the same time, when evaluating investment decisions, tax stability and certainty are considered just as important as the overall level of taxation, with both factors cited by between 50% and 60% of participants.

The digitalization of tax is also a key concern for surveyed companies (56%), as it promises to enhance efficiency for both businesses and tax authorities, while also involving additional costs and implementation challenges.

Reactions to AI-based tax compliance software were predominantly positi8ve. The main anticipated benefits include improved accuracy of tax processes (29%), more time available for core operations (18%), improved compliance (15%), and other advantages. However, companies also recognize the additional costs and operational complexity associated with implementing AI-based tax solutions (15%).

In tax audits, AI-powered solutions are seen as an efficiency driver, leading to faster and more effective audits (68%) as well as more targeted inspections and, consequently, fewer information requests from tax authorities (59%). On the other hand, 45% of respondents expect AI-driven tax audit findings to be difficult to understand and challenge.

Tax Administration 3.0 agenda continues to gain momentum globally. Nearly two-thirds of participants (60%) report progress in implementation across the jurisdictions in which they operate, while 27% have observed significant developments. Expected benefits include reduced time and resources spent on tax compliance (26%), more collaborative relationship with tax authorities (23%), improved taxpayer services (17%), and fewer but more effective tax audits (14%). However, almost one in five participants (19%) believe that the digitalization of tax administration could result in additional costs and increased complexity.

Regarding electronic invoicing, confidence in its benefits has moderated compared to previous years, reflecting high implementation costs and increasingly complex technical requirements. While simplified tax compliance (36%) remains the primary perceived advantage, significant investment in systems and technology (37%), together with increased operational complexity (25%), continue to be areas of concern among taxpayers.

“The findings of this year’s survey send a very clear message: regulatory complexity remains the most pressing tax challenge for companies worldwide. The combination of reporting requirements, compliance burdens, and the additional costs associated with tax digitalization is exerting increasing pressure on businesses. At the same time, the benefits expected from simplification and modernization initiatives will take time to fully materialize. Romania reflects many of these global trends, as companies operating locally are subject to both international tax rules, such as the global minimum tax and sustainability-related requirements, and an increasingly complex domestic tax landscape. Over recent years, this complexity has been amplified by multiple digital reporting requirements, which have so far represented more of a financial and administrative burden than a benefit for taxpayers. A key challenge remains the tax administration’s ability to fully process and leverage the large volumes of data collected through these reporting systems to serve their intended purpose – to simplify procedures for compliant taxpayers and strengthen the early detection of tax evasion-, due to the lack of adequate IT infrastructure within the tax administration,” said Vlad Boeriu, Tax & Legal Partner-in-Charge, Deloitte Romania.

In these circumstances, the study’s participants believe that reducing complexity and disproportionate compliance burden should remain a central focus of global tax policy. One example is the introduction of simplification mechanism related to the implementation of the global minimum tax (Pillar Two of the OECD tax reform), intended to ease compliance obligations for both businesses and tax administrations. About 80% of participants expect their organizations to benefit from this mechanism, suggesting that the new framework will have broad applicability.

However, the appetite for even further simplification in this area remains strong – 41% of companies believe simplification efforts should continue, while 58% expect certain areas of tax compliance to become even more complex in the coming years.

From a financial perspective, 88% of participants anticipate higher tax liabilities as a consequence of Pillar Two implementation.