KPMG's Tax Function Benchmarking Study

A study designed to help tax professionals gain insight into their practices and identify improvements needed to demonstrate the strategic value that the tax function can bring to their overall organizations.

  
 

Introduction

 

KPMG has released the KPMG Tax Function Benchmarking Study Insights Report which was developed from the aggregate survey results from senior-level tax professionals from companies in varying sectors and revenue sizes. The ongoing survey provides data and insights into how tax departments are addressing various aspects of their tax operating models.  Download the report here.

  
 

Key Study Findings

 

Global Resource Model Trends

In addition to the traditional discrete tax department structure, tax functions today are typically housed across more than one distinct organizational structure, including: 

  • Shared Service Centers (SSC)
  • Global Business Service (GBS)
  • Centers of Excellence (COE)

Shared Service Centers (SSC)

Shared Service Centers (SSCs) is an entity, group, or facility responsible for the handling and execution of specific operational or transactional tasks from across the organization, such as accounting, human resources, payroll, IT, legal, compliance, or purchasing. SSCs may be in one or more locations globally. They are often used to reduce the cost of processing transactions due to wage arbitrage opportunities available in the SSC location when compared to the home country, and because processing personnel are not needed in every corporate function.

Global Business Service (GBS)

A Global Business Service (GBS) is a more integrated and mature evolution of the shared services model. GBS groups can provide services beyond transactional functions and have wider responsibilities and expertise to deliver higher-value functions, such as consulting and business analytics. Use of a GBS organization may reduce the need for such expertise in the finance function itself.

Centers of Excellence (COE)

Centers of Excellence (COEs) are specialist groups with a topical or process focus; for example, transfer pricing, transaction taxes, accounting for income taxes, compliance, etc. They can be virtual (i.e., all COE members are not located in the same primary location), and often have multi-jurisdictional remits in their area of specialization. The use of this term is nuanced and it may be used differently in different organizations.

 

Expected increased use of SSCs and GBS

 

Expected increased use of COEs

39% of respondents
Companies with revenues greater than $10B
 
14% of respondents
Companies with revenues less than $10B
30% of respondents
Companies with revenues greater than $10B
8% of respondents
Companies with revenues less than $10B

 

 

Transforming the Tax Organization

Survey findings reveal that over the next 5 years, tax departments will be evolving... 

 

   

   
    
   

 

Data & Analytics 

Tax functions understand that in order to stay on top of the disruptions in the digital age they need to invest in, and increase their use of, data and analytics.

 

D&A has a moderate-to-high potential to drive tax process efficiency

84% of respondents

 

  

 

D&A has a moderate-to-high potential to generate tax savings for their organization

74% of respondents

Discover More

 

 

Receive a customized report benchmarking you against your peers

 

Read the aggregate findings report                                                        

 

For more information or questions

 

 

 

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