Tax Function Benchmark 2025

The PwC Tax Function Benchmark 2025 provides valuable insights into the current state of the tax function within primarily large, multinational organisations, focusing on budget, personnel, processes, and technology. For the benchmark study, more than 100 Tax executives shared the progress of their tax function. Over 60 of them completed the full questionnaire, while approximately 40 others filled in a significant portion.

In a hybrid environment, where both human and technological skills are required, the results highlight the crucial role of the tax function. Given the tight labour market and limited investments in technology, the report focuses on the extent to which organisations are prepared for future changes and the necessary balance between efficiency and the strategic role in business innovation.

The combination of survey results focused on the Netherlands and additional insights from PwC's global surveys provides a comprehensive overview of the challenges and trends faced by tax functions. The results can serve as a benchmark for organisations looking to evaluate and future-proof their own tax function, with analyses and insights from PwC's tax experts underscoring the urgency to act now.

Key findings

1. Increasing Workload and Compliance Requirements
   1. 79% of Tax executives expect the workload for the tax function to increase over the next 1-3 years, driven by growing compliance requirements.
   2. Nearly 50% of the tax function's time is spent on compliance-related tasks, leaving only 20% for strategic advice.
2. Budget Constraints and the Need for Investment
   1. 66% of Tax executives expect the budget for the tax function to be insufficient over the next 1-3 years.
   2. Although 62% expect the budget to increase, only 5.1% of the budget is spent on technological investments and 3.1% on upskilling employees.
3. Role of Technology and Adoption Challenges
   1. 48% of Tax executives believe that technological solutions can help address capacity issues, with 33% being certain of this.
   2. Only 8% currently use AI for tax purposes, while 41% are still exploring the possibilities.
4. Governance and Structure of the Tax Function
   1. 52% of organisations have a centralised tax function model, while only 16% have a decentralised model.
   2. Shared Service Centres are used in only 21% of cases for tax-related activities, mainly for compliance with Corporate Tax and indirect taxes.
5. Compliance Challenges and Risk Management
   1. 67% of respondents have recently or previously faced a tax audit, and only 59% are "likely" confident that their tax administration is accurate, up-to-date, and complete.
   2. 57% of respondents indicate they do not have a robust Tax Control Framework (TCF). An organisation without a robust TCF risks not only financial and reputational consequences but is also less equipped to adapt to the future and capitalise on new opportunities in a dynamic environment.