Tax Advisory Services Industry Procurement Intelligence, Supplier Intelligence, Supplier Ranking, Pricing & Cost Structure Intelligence, Best Practices, Engagement Model, Low & Best Cost Country, Day One Analysis Report, 2020 - 2027

Procurement Outlook

Tax advisory services deal with legally bringing down the tax liabilities for clients, estimating taxes on different investment portfolios, determining the relevant deductions and credits, etc. These services are performed by an individual who a financial expert is holding specialized tax accounting, tax law knowledge, and know-how. A tax advisor can work either for an agency or can be self-employed. Tax advisory service providers also write tax returns for their customers and file them. A typical tax advisory services deals with the following aspects:

• Corporate income tax

• Indirect taxes (sales taxes, customs duties, VAT, etc.)

• Tax legislation and regulations compliance

• International tax structuring

• Assessing mergers and acquisition-related tax risk (For large corporations)

• Real estate tax compliance

• Transfer pricing documentation

Demand Outlook

The global tax advisory services market valued at USD 32 billion in 2020 and it is expected to grow at a CAGR of 9% from 2020 to 2027 as tax authorities around the world try to crack down on corporate tax avoidance strategies, and demand for transfer pricing advice is helping fuel that growth. North America is leading the global tax advisory market with more than 30% market share followed by Europe and APAC. Many small and medium-size organizations are procuring tax advisory services from low-cost independent tax advisors majorly located in the APAC region. Hence, APAC is expected to witness the highest growth rate in the global tax advisory service market during the forecast period.

Cost Drivers

The salary of tax advisory professionals is the key cost driver of tax advisory services. However, the overall cost of service may differ depending on the type of services and service providers. Procuring services from independent tax advisory professionals is more than 80% cost-efficient than from an advisory firm. This method is only applicable to small and medium-size companies, as large corporations majorly engage with leading tax advisory service providers in a long-term contract agreement. The overall tax advisory services cost is expected to increase by 5-8% during the forecast period.

Constraints

Covid-19 pandemic affected the global tax advisory services industry negatively. The global market has witnessed a slump of 9% during this period. Major markets like the U.S. and the U.K. are among the severely affected countries. In the U.S., the tax advisory services revenue contracted over 17% whereas, in the U.K., it decreases by more than 20% in 2020. Moreover, lack of availability of skilled professionals could become a serious challenge during the forecast period.

Supply Chain

Deloitte Touche Tohmatsu Ltd., PricewaterhouseCoopers International Ltd., Ernst & Young Global Ltd., KPMG International Ltd., BDO International Ltd., Grant Thornton International Ltd., Baker Tilly International Ltd., Crowe Global, Mazars Group, and Moore Global Network Ltd. are some of the key tax advisory service providers. The global tax advisory services market feature a moderately fragmented landscape as the industry leaders contribute less than 30% of the overall market share. Leading suppliers are strengthening their presence through multiple mergers and acquisitions. Grand View Research will help our client identify the best-suited suppliers by mapping their core capabilities and operational efficiency.