Corporate tax departments are under growing pressure. Regulatory complexity continues to rise, talent remains scarce, and many teams are being asked to “do more with less”, all while expectations for strategic contribution are increasing.
The 2025 State of the Corporate Tax Department report, produced by the Thomson Reuters Institute in partnership with Tax Executives Institute, explores how tax leaders around the world are responding to these challenges, and where progress is being made.
Based on insights from senior tax decision‑makers globally, the report highlights both the obstacles holding tax functions back and the opportunities emerging through smarter resourcing, technology adoption and new ways of working.
Key insights from the report
The research reveals a tax function at a crossroads:
- Most tax departments remain under-resourced. Nearly six in ten respondents describe their tax teams as under resourced, an increase from the previous year, with many citing limited budget, headcount shortages and outdated systems.
- Compliance still dominates day-to-day work. Tax professionals report spending more than half their time on reactive, compliance driven activity, despite a strong preference to focus more on strategic and proactive analysis.
- Technology adoption is progressing – but unevenly. While many organisations are investing in automation, ERP transformation and AI-enabled tools, most tax functions remain in reactive or transitional stages of technology maturity.
- GenAI shows promise, but impact is still emerging. Early use of generative AI is largely focused on research, documentation and basic efficiency gains, with broader strategic applications still developing.
- Better resourcing correlates with stronger outcomes. Departments with adequate resources report fewer penalties, greater confidence in forecasting and a stronger ability to support business decision making.
Together, these findings paint a picture of slow but deliberate progress, as tax leaders work to position their functions for long-term strategic benefits.
Who should read this report?
This report is essential reading for:
- Heads of Tax and Chief Tax Officers
- CFOs and senior finance leaders
- Tax and finance transformation leaders
- In‑house tax professionals seeking benchmarking insight
It is particularly relevant for organisations navigating digital transformation, workforce constraints, or increasing global and local tax complexity.
About the research
The 2025 State of the Corporate Tax Department report is based on a global survey of 288 senior tax decisionmakers, conducted in mid-2025. Respondents span a wide range of industries and organisation sizes, offering a comprehensive view of the challenges and priorities shaping today’s corporate tax function.
Access the full 2025 State of the Corporate Tax Department report to explore the data, analysis and insights in detail.
