2025 Global Tax Market Assessment
The 11th Annual Global Tax Market Assessment
Presented by TaxTalent
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Executive Summary
Introducing the 11th Annual Global Tax Market Assessment (GTMA), brought to you by TaxTalent, TaxSearch, TaxForce, and BPA. This report delivers forward-looking insights into the key trends shaping the tax profession, from a staffing, retention & development perspective.
Each year, the GTMA evaluates the accuracy of past predictions while offering actionable guidance to navigate the evolving tax landscape. For 2025, the profession faces a pivotal moment: an intensifying wave of audits and enforcement, rapidly shifting demographics, growing talent shortages, and mounting complexity in global compliance.
With this report, tax professionals gain valuable knowledge to guide Financial and HR leadership in navigating today’s tax landscape. Here are the top four key takeaways for 2025:
U.S. Predictions
The 2024 election marks a turning point for tax policy. With Republicans controlling Congress and the White House, U.S. tax regulation is likely to ease.
Provisions of the TCJA, previously expiring in 2025, are likely to remain and could even become permanent. While this may simplify domestic compliance, companies benefiting from Inflation Reduction Act incentives face potential repeal risks, and tariff policy impacts remain uncertain.
Multinational organizations face a complex balancing act: managing U.S. deregulation while navigating increasing global compliance requirements, particularly around Pillar Two. This divergence, combined with favorable market conditions accelerating baby boomer retirements, creates unprecedented challenges for tax departments.
Tax leaders must act now — restructuring teams for flexibility, educating stakeholders on emerging complexities, and developing proactive strategies for policy shifts and workforce transitions. Those who take these steps will be best positioned to navigate both the domestic and global challenges ahead.
2. Talent Shortage and Skills Gap
The tax profession faces a critical workforce transition as Baby Boomers retire and Millennials move into leadership positions prematurely.
This creates two major problems: a senior-level experience gap, potentially worsened by early retirements, and a shortage of entry-level talent to meet demand. The result is increased pressure on millennials, who must handle both leadership and technical roles with limited mentorship opportunities.
Economic expansion and business-friendly policies are likely to drive up demand for tax talent, while mounting international requirements like Pillar Two will put further pressure on an already strained talent pool. Budget constraints will also make attracting and retaining skilled talent harder, even as the need for adaptable tax teams grows.
To address this, tax leaders must prioritize long-term workforce planning. Succession strategies, mentorship, and targeted development programs for younger professionals are critical. Building a well-prepared pipeline of talent will be essential to navigate the rising demands of the evolving tax landscape.
3. Demographics Reshaping the Tax Workforce
The tax profession is undergoing a profound demographic shift. Baby Boomers now make up just 32% of the tax workforce, with half over age 65. Their retirements, expected to accelerate post-2025, are creating critical knowledge gaps.
Compounding this, older Gen X professionals (ages 55–59) — many holding leadership roles — face pressures that could lead them to exit earlier than expected, driven by workplace demands, inherited wealth, and caregiving responsibilities.
Tax departments must prepare for this dual exodus. Honest, proactive conversations with both Boomers and Gen X leaders about retirement plans are essential to mitigate surprises and ensure knowledge transfer. Simultaneously, identifying and developing high-potential millennials through mentorship, training, and leadership opportunities will be key to addressing succession gaps. Tax leaders who act now to strengthen succession plans and invest in talent pipelines will be better equipped to navigate the changing workforce. Waiting to respond risks costly turnover and operational disruption in an already strained talent market.
4. Rising Tax Controversy and Audit Challenges in 2025
Tax controversy and audits are set to intensify significantly in 2025, with governments at all levels targeting corporations to address budget shortfalls from pandemic-era spending.
Large, profitable, and publicly traded companies will face increased scrutiny of both direct and indirect taxes, including transfer pricing and intangible assets. The IRS, bolstered by 87,000 new agents, is just one example of expanded enforcement efforts, with state and international authorities ramping up their own audit activities.
Adding to the pressure, we anticipate that financial audits will grow more rigorous, particularly for U.S. public companies under stringent U.S. GAAP tax provision requirements.
As audit demands rise, the tax profession faces a critical shortage of experienced talent, exacerbated by the impending retirement of baby boomers and Gen Xers. Similarly, companies relying on external advisors may struggle to secure expertise in a competitive market.
Tax leaders must act now to strengthen audit defenses, enhance documentation practices, and build versatile teams with skills spanning audit, planning, and compliance. Proactive communication with financial leadership is also essential to avoid surprises.
Organizations that prepare for this new era of intensified scrutiny will mitigate risks, while those that delay face operational and financial challenges.
Non-U.S. Predictions
Interested in learning about the 2025 forecasted trends throughout the rest of the world? The second half of the Global Tax Market Assessment contains insight on the top global tax trends impacting EMEA, Asia Pacific, and Latin American tax departments.
Barrie Pallen and Will Sheppard, Directors at BPA Search, are offering private meetings with those who wish to discuss Non-U.S. tax issues further. Please email Will directly at will@bpasearch.co.uk to schedule a meeting.
The top key takeaways for these regions are:
- Demand for Multidisciplinary Skills
- Tech-Savvy Professional in High Demand
- Intensified Compliance an Audit Landscape
- Retention and Compensation Challenges
- Focused on Soft Skills and Advisory Capabilities
- Uncertanity of Incoming U.S. Administration
Read the Non-U.S. Tax Market Assessment Here
FREE WEBINAR - You have questions, but we may not have all the answers this time around.
The teams at TaxTalent, TaxSearch, TaxForce, and BPA, will be hosting a FREE Q&A webinar on February 6th from 1-2:15pm EST, opening the discussion surrounding these topics further.
Register for the GTMA Q&A Webinar
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