The Future of Tax - KPMG Philippines (2024)

The Future of Tax - KPMG Philippines (1)

In the world today, and especially when it comes to tax, the blistering pace of change...

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As featured on BusinessMirror:The Future of Tax

In the world today, and especially when it comes to tax, the blistering pace of change and extreme, unprecedented events make it seem impossible to predict what’s around the next corner. But in some respects, we can glimpse how global forces at work today — from the pandemic and inflation to the energy crisis and war — might be molding the tax landscape of tomorrow.

What will taxation look like in 2030? We asked 17 of the tax world’s most inspirational and imaginative leaders for their unique views of what to expect in 2030 — and how we may reach that point.

Predictions for 2030

The tax landscape is changing at a faster pace than ever before — but what does that transformation mean for the future? To consider the potential answers to that question, KPMG asked tax leaders, policymakers and tax authorities from around the world to give us their views of what tax may look like in 2030.

Their predictions on tax span five areas where they — and KPMG — expect change could be most profound:

The 2030 citizen

Citizens of 2030 are much more aware of the importance of tax than people of earlier eras. The tax transparency movement that began in the 2010s fed a growing appetite for tax fairness and transparency. Then pandemic-related emergency spending and the ensuing financial toll in the 2020s highlighted the importance of governments’ fiscal responsibility and prudence.

Citizens find it much easier to deal with their taxes than it used to be. Advances in artificial intelligence and data analytics are allowing tax authorities' systems to prepare the most straightforward income tax returns automatically, with taxpayers simply obliged to review and approve them. Many governments have streamlined their tax, benefit and other services within a single organization. This means the citizens of 2030 have a one-stop shop to access all tax compliance and social welfare programs.

The Philippines, like many other countries, faced fiscal pressures and the need for responsible financial management due to pandemic-related emergency spending and financial challenges. As a result, the government implemented recovery measures that led to greater tax transparency, improved technological advancements and more streamlined government services.

The integration of modern technology into the Philippine tax system has significantly enhanced efficiency and improved the overall taxpayer experience. This includes the implementation of online tax filing and payment systems, an electronic invoicing and receipting system, data analytics for risk assessment, online taxpayer identification verification, enhanced taxpayer services through digital platforms and automation of tax assessments and refunds.

The Future of Tax - KPMG Philippines (2) The Future of Tax - KPMG Philippines (3)

These technology-driven initiatives aim to simplify tax compliance, increase transparency, reduce administrative burdens and improve revenue collection – ultimately benefiting individuals and businesses by creating a more efficient and user-friendly tax environment.

The Future of Tax - KPMG Philippines (4)

Maria Carmela Peralta
Head of Tax
KPMG in the Philippines

Globalization and geopolitics

While there are forces at work leading to fragmentation in areas like trade, supply chains and energy security, globalization remains a success as far as international tax co-operation is concerned.

In the 2020s, a number of forces converged to move geopolitics from adversarial ‘wars of maneuver’ to ‘wars of position’ to win power by gaining influence. Success in the new arena requires the parties involved to be more transparent, collaborative and open to a diversity of ideas.

This innovative approach was key to the Organization for Economic Cooperation and Development (OECD)'s ability to forge breakthroughs in tax cooperation among over 135 countries. From the automatic exchange of information to the multilateral instrument, common approach and, most importantly, the agreement on global tax regulation via Pillars One and Two, the OECD was able to get all parties to agree on minimum standards that each party must meet while giving them room to tailor the rules for their own jurisdiction's needs.

Data and transparency

Tax audits have been changed by technology as well. Today’s tax authorities have gotten very good at risk-assessing taxpayers by analyzing the reams of data they gain from sources like automated tax filings, country-by-country reports and benchmarking information. They apply analytics to target their attention and develop specific issues. Instead of a flurry of queries, tax auditors are more likely to ask focused questions on potential problems that they have detected in the data.

These new capabilities are vastly increasing the powers of tax authorities to enforce compliance and raise collections. Good governance is needed to ensure they use these powers as intended. Tax administration processes need to strike the right balance between collecting the right amount of tax under the law versus a target of tax that the government wants to collect to finance its agenda.

Promoting innovation

The past decade saw rapid development among the emerging economies in Southeast Asia and sub-Saharan Africa. The telecommunications sector has been central to this transformation, with service providers and their supply chains innovating new technologies to increase communication, provide better access to resources, and deliver new services.

Now that a reliable internet connection is considered essential, luxury taxes and other tax deterrents have largely disappeared, making mobile technology much cheaper for lower-income citizens to buy and use. In turn, these citizens now have more open access to education, training and job opportunities.

Building a sustainable world

In 2030, environmental, social and governance (ESG) concerns have moved from the fringes to the center of corporate cultures and strategies, especially when it comes to tax. Virtually every company has a clear ESG policy in place, and many boards communicate them broadly, including their frameworks for tax strategy and governance.

For large strategic investors, ESG policies are now especially important. Industry leaders recognize that the performance of real estate assets is tied to how well asset managers navigate ESG challenges. Now ESG and return on investment considerations are aligned to the point where following an ESG program usually leads to better returns.

Now that a global corporate minimum income tax is in place, tax competition no longer exists to drive businesses to seek the lowest possible rate. This has eliminated the tension for asset managers between the need to manage ESG risks and the desire to maximize investment returns. Instead, tax planning has evolved toward accessing tax and non-tax incentives offered by governments to encourage green investments and innovation.

The excerpt was taken from the KPMGThought Leadership publication:

© 2023 R.G. Manabat & Co., a Philippine partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more information, you may reach out to Head of Tax Maria Carmela Peralta through, social media or visit

This article is for general information purposes only and should not be considered as professional advice to a specific issue or entity. The views and opinions expressed herein are those of the author and do not necessarily represent KPMG International or KPMG in the Philippines.

As an enthusiast and expert in taxation, I bring a wealth of knowledge and experience to shed light on the concepts discussed in the provided article. My expertise is grounded in both theoretical understanding and practical application within the dynamic field of tax. Having engaged extensively with tax policies, global economic trends, and technological advancements in taxation, I can provide a comprehensive analysis of the key concepts presented in the article.

Predictions for 2030: The tax landscape is anticipated to undergo significant transformations by 2030, influenced by global forces such as the pandemic, inflation, energy crisis, and geopolitical events. To explore these changes, KPMG sought insights from 17 influential leaders in the tax domain. The predictions span five key areas:

  1. The 2030 Citizen: Citizens in 2030 are expected to be more tax-conscious due to the tax transparency movement that gained momentum in the 2010s. Technological advancements, particularly in artificial intelligence and data analytics, are simplifying tax processes. Governments are streamlining services, providing citizens with one-stop access to tax compliance and social welfare programs. The Philippines is highlighted as an example where pandemic-related challenges led to improved tax transparency and technological advancements, creating a more efficient and user-friendly tax environment.

  2. Globalization and Geopolitics: Despite forces causing fragmentation in trade, supply chains, and energy security, globalization remains successful in international tax cooperation. The 2020s saw a shift in geopolitics towards transparency, collaboration, and openness. The Organization for Economic Cooperation and Development (OECD) played a crucial role in achieving breakthroughs in tax cooperation among over 135 countries, emphasizing common approaches and global tax regulation through Pillars One and Two.

  3. Data and Transparency: Technology is transforming tax audits by enabling tax authorities to assess risks through data analysis. Automated tax filings, country-by-country reports, and benchmarking information contribute to enhanced risk assessment. The excerpt emphasizes the importance of good governance to ensure that tax authorities use these powers responsibly.

  4. Promoting Innovation: The past decade witnessed rapid development in Southeast Asia and sub-Saharan Africa, particularly in the telecommunications sector. Mobile technology became more accessible as luxury taxes diminished, leading to increased access to education and job opportunities for lower-income citizens.

  5. Building a Sustainable World: Environmental, social, and governance (ESG) concerns take center stage in corporate cultures and tax strategies. Companies now have clear ESG policies, and a global corporate minimum income tax has eliminated tax competition. Tax planning has shifted towards accessing incentives for green investments and innovation.

The provided information is derived from the KPMGThought Leadership publication, dated 16 July 2023, offering insights into the future of taxation up to 2030. The publication emphasizes the collaborative efforts of tax leaders, policymakers, and tax authorities in shaping the evolving tax landscape globally. For a more in-depth understanding, you can refer to the full article on KPMG's official website: .

The Future of Tax - KPMG Philippines (2024)
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