Managing indirect taxes in rapid-growth markets

In this report, we look at issues and opportunities that multinational companies face in doing business in emerging and fast-growing economies.

Through interviews with clients, investment agencies and our indirect tax professionals who work in these countries, we highlight:

  • The everyday challenges that businesses encounter
  • How they tackle them in practice
  • The “leading practices” they have developed

Since 2008, many developed economies have seen flat or negative growth rates. Multinational businesses have responded by transforming their supply chains to reduce production costs and overheads and to pursue growth in new markets.

Thus, despite the global economic downturn, overall levels of global trade remain high, and the mix of countries involved is constantly evolving. Business models are also transforming with technological advances.

Indirect taxes apply to every stage of the supply chain, not only for goods but also for services. Managing these taxes is crucial to maintaining profitability. But doing business in new markets is not always easy.

Keeping pace with rapid business developments, changing supply chains, and unfamiliar local laws and practices creates complexity and risk, which can be difficult to manage.

The result can be higher indirect tax costs and elevated indirect tax risk. But opportunities do exist to improve indirect tax performance in these circumstances to sustain growth.

This report aims to help tax, operations and financial executives start and contribute to wider discussions throughout the organization about how best to manage indirect taxes in the global supply chain.

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