The cloud tax management software market is projected to grow at a considerable CAGR of 12.5% during the forecast period. The ongoing globalization, increasing competition, an ever-increasing regulatory compliance burden have created a need of advanced software that can maintain all the tax legislation to maintain continuity of the business processes. The cloud tax management software offers management solutions on the cloud to increase mobility and distribute data storage and computing rights. Therefore, the increasing demand for tax management solutions for the maintenance of tax filling is a major factor to promote the adoption of the cloud tax management solution which in turn is anticipated to promote the growth of the global cloud tax management software market. 

The global tax regulations, such as the Organization for Economic Cooperation and Development’s (OECD’s) Action Plan on Base Erosion and Profit Sharing (BEPS) represents one of the most sweeping global tax changes in recent history, and it will have major direct tax implications for multinational entities (MNEs). Therefore, the software that can easily perform the operation by quickly adopting the new changes in the policies is the need of the hour. Moreover, the increasing adoption of cloud computing owing to the increased efficiency of the enterprises, improved employee mobility, and increased ability of production innovation, and reduced IT operating costs are the key factors that are promoting the enterprises to adopt cloud-based tax management software solution, which in turn anticipated to drive the growth of the global cloud tax management software market.

Segmental Outlook  

The cloud tax management software market is segmented on the basis of type, and vertical. Based on type the market is segmented into direct tax and indirect tax. Based on type the direct tax is anticipated to hold considerable market share during the forecast period. Mandatory compliance to pay income tax is a major factor to promote its market growth.  Based on vertical the market is segmented into Banking Financial Services and Insurance (BFSI), Information Technology (IT) and telecom, energy & utilities, healthcare & lifescience, government, retail and consumer goods,and others.

BFSI to hold considerable market share in 2018

Operations in BFSI are decentralized and distributed by their nature. Hence, in order to enhance their reach and access, the BFSI sector has to manage a wide variety of customers in several regions under different rules and regulations. As a result, a document management system for the BFSI industry is much more complex and critical. Therefore these organizations are actively adopting these solutions to perform business process management, KYC and risk management, record management & OCR, and security & confidentiality. Hence, high adoption of these solutions in the BFSI sector to improve the performance of their activities is a major factor to promote the growth of this market segment. 

Global Cloud Tax Management Software Market Share by Vertical, 2018 (%)

Regional Outlook 

The global cloud tax management software market is further segmented on the basis of geography including North America, Europe, Asia-Pacific and Rest of the World. North America is projected to hold a considerable market share in the global cloud tax management software market during the forecast period. The US is known to have the most developed taxation system across the globe. Oracle Corp., Microsoft Corp., and SAP SE, in the region, are the major players operating in the country. The strict government policies related to tax filing along with the presence of key software vendors are the key factors promoting the growth of the cloud tax management software market in North America. North America is followed by Europe and the Asia-Pacific is projected to be the fastest-growing market during the forecasted period.

Global Cloud Tax Management Software Market Growth, by Region 2019-2025

Asia-Pacific will augment with the significant growth rate in the cloud tax management software market

Asia-Pacific is anticipated to grow at a considerable CAGR during the forecast period. The factors attributing to the growth rate of Asia-Pacific include a considerable increase in the penetration of business accounting mobile applications and digital payment systems. Moreover, the emergence of small and medium enterprises and rising investment in the cloud and SaaS market are likely to promote the growth of the cloud tax management software market in the Asia-Pacific region. The shift of the Indian government towards the adoption of the GST scheme has further propelled the adoption of such type of software in the region. Moreover, China is a major player in the SaaS platform to further promote the adoption of cloud tax management in the country.   

Market Players Outlook

The major companies operating in the cloud tax management software market include Microsoft Corp., Oracle Corp., Sage Intacct Inc., SAP SE,H&R Block, Inc., TPS Unlimited, Inc., Wolters Kluwer N.V., Intuit Inc., Paychex, Inc., ADP, LLC and among others. These players are actively adopting different growth strategies such as merger & acquisitions, partnership, and collaboration. Technological advancement and new product launches are the core strength of the market players to remain competitive in the marketplace. 

The Report Covers

• Market value data analysis of 2018 and forecast to 2025.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global cloud tax management software market. Based on the availability of data, information related to pipeline products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.