Tax Management Market size to hit $50 Bn by 2032

Tax Management Market size is estimated to exceed USD 50 billion by 2032, according to a new research report by Global Market Insights Inc.
 

The rising popularity of digital tax administration is expected to act as a major factor driving the industry trends. Supportive efforts by various governments to encourage digital tax filing and returns through the introduction of online platforms are complementing the industry scenario. For instance, in September 2022, the State Taxation Administration (STA) of China issued E-fapiao, an official document to ensure tax compliance with trade laws, business transactions, and tally cash flow across the country.
 

Ease in timely and accurate filing of income tax to encourage tax management services deployment

Based on component, the tax management market from service segment is predicted to cross USD 15 billion by 2032, driven by clientele services that facilitate the timely and accurate filing of federal and state income tax returns both on-site and online, as well as through desktop versions. These professionals consist of Certified Public Accountants, Enrolled Agents, and Tax Attorneys who either work within an individual entity or provide tax management services.
 

Lack of network infrastructure to help on-premise tax management tools gain traction

The on-premise deployment segment accounted for 30% tax management market share in 2022. Approximately 20% of end users utilize the conventional method of submitting taxes due to its benefits, such as no internet speed requirement, no installation updates, low chances of data thefts, and integration possibility for hybrid cloud systems. Moreover, the lack of proper network infrastructure in underdeveloped countries is projected to result in significant demand for on-premise tax management systems.
 

Rising employment rate to complement direct tax segment development

The tax management market from direct tax segment is poised to be worth over USD 20 billion by 2032, attributed to The rapid digital transformation and the growth of developing countries are creating more employment and wealth. In January 2023, the Australian Bureau of Statistics reported that full-time employment reached 9,602,400 from 9,200 people while part-time employment reached 4,150,800 from 2,200 people compared to January 2013.
 

Browse key industry insights spread across 386 pages with 362 market data tables and 24 figures & charts from the report, “Tax Management Market Size By Component (Solutions, Service), By Organization Size, By Deployment Mode (On-premise, Cloud), By Tax (Indirect Tax, Direct Tax), By End-Use (Healthcare, Real estate, Manufacturing, Government & More), 2023 – 2032” in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/tax-management-market
 

Growing partnership with tax managing tool providers to favor the large enterprise segment

Based on organization size, the large enterprise segment held more than 45% market share in 2022. Large businesses’ positive efforts to partner with tax management solutions to make tax compliance easy has impelled the market growth. In August 2022, Pax8, an IT service management firm, partnered with Intuit, a tax services provider, to offer Quickbooks Online to MSPs. With this partnership, Pax8 intended to provide its partners with tax management tools and benefit from this new suite of financial tools.
 

Heightened spending on smart devices to augment retail & consumer goods segment expansion

The tax management market from the retail & consumer goods application segment will witness 10% CAGR from 2023 to 2032, driven by mounting expenditure on consumer products, including electronics, appliances, and smart devices. According to consumer electronics leader Samsung its smartphone sales rose by 9% by 2022, which helped it gain 24% share of the global smartphone market and become a top seller in South Korea since 2017.
 

Favorable direct tax policies for SMEs to aid Europe industry

The Europe tax management market valued at USD 5 billion in 2022, propelled by the government's contribution as well as rising investments in healthcare, manufacturing, construction, energy, and utilities. In a recent event, the UK government boosted research and manufacturing in the healthcare sector with an investment of £260 million (~USD 310 million) in March 2022. In addition, France is anticipated to grow rapidly due to favorable direct taxes policies, which is slated to bolster the growth of SMEs in the region.
 

Strategic trade initiatives to push business growth

Some of the leading players in the tax management market include Wolters Kluwer N.V., Intuit Inc, HRB Digital LLC, Thomson Reuters, Avalara Inc, Safesend, Shoeboxed Inc, Exemptax, TaxCloud and Avantax . These firms engage in several acquisitional and collaborative operations to stay ahead in the competitive landscape. For instance, in November 2022, Blucora, Inc., a tax preparation firm, traded its tax software business, TaxAct for USD 720 million to Cinven, a private equity manager. The company is set to rebrand as Avantax and plans to focus on wealth management tax using its independen