Tax software is designed to help companies or individuals in ensuring tax compliance for corporate tax, income tax, VAT, customs, sales tax, service tax and similar tax returns users may require to pay. Tax software simplifies the process of filing tax by avoiding user’s work through tax forms and also automatically calculates the company’s or individual’s tax compulsions/obligations. The objective of these software is to provide the user with a simplified solution to calculate tax payment and minimize any associated human error.
Automation of business critical applications, reduces the execution risk by reducing operating costs, improving management, visibility and increased productivity. The convergence of digital devices and technologies with traditional business processes and rapidly changing industrial environment, are increasingly growing demand for the tax software market. As such, tax procedures are switching to smart tax software products that are capable of handling every critical aspect of a tax obligations lifecycle. Highly scalable tax software, some of which also have the capability of avoiding duplicity and minimizing deductions, to more effectively serve the consumers. From the market perspective, increasing electronic filing of individual tax returns is expected to reduce internal revenue service (IRS) and ultimately increase enforcement revenue.
Tax software are of primary focus for small businesses as it maximizes tax deductions and removes the necessity to hire tax accountants for filing taxes. All these factors are collectively supporting the demand for a variety of tax software across the globe. Due to these factors, the global tax software market is projected to expand at an excellent pace over the forecast period. The increasing improvements in tax collection systems, especially in developing regions, is one of the crucial factors driving the global tax software market.
Furthermore, advancements in cloud and analytics has led to the rising adoption of tax software. These factors are anticipated to garner increased adoption rates and propel the tax software demand over the forecast period.
The global tax software solutions market can be segmented based on deployment type, solution, billing type, verticals and region. In terms of deployment type, the market has been bifurcated into cloud-based and on-premise software. Based on solution, the market can be segmented into integrated-suite and standalone software. On the basis of billing type, the market can be segmented into license based and subscription based. Furthermore, on the basis of verticals, the market is segmented into BFSI, telecom & IT, government, healthcare, retail & consumer goods, transportation, manufacturing, energy and utilities.
The global tax software solution market is also segmented on the basis of regions into North America, South America, Europe, Asia Pacific and Middle East & Africa. The market is dominated by developed regions such as North America and Europe owing to the availability of funds for supporting the switch to operational advancements. North America has the largest number of industries which are willing to invest in the tax software solutions. Adoption rate in North America is comparatively higher when compared with other regions. Europe has a huge transportation, logistics, and shipping market. Pertaining to high requirement for automated system and services, the companies are utilizing cloud based solutions to differentiate their services. This trend can be attributed to the increasing focus on innovations obtained from research and development and advanced technologies in the developed countries. Moreover, Asia Pacific is among the fastest growing markets. Whereas, south America and Middle East & Africa regions are also expected to grow significantly over the forecast period.
Some of the major players active in the development of tax software market include Vertex, Inc., Avalara, SOVOS, H&R Block, EGov Systems, Intuit Inc., Xero, Thomson Reuters, Exactor, Wolters Kluwer, FedTax, LegalRaasta.com, Drake Software, BLUCORA and LumaTax.
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