In collaboration with EY, ITR brings you practical insight into how tax departments across the Asia-Pacific region are approaching the challenges that have come to the forefront during 2020.
Tax departments around the world spent a significant portion of the previous decade evolving to reflect the greater digitalisation and globalisation of their economies. Just months into the 2020s, the two terms surprisingly evoke the consideration of a range of new objectives.
The global impact of the COVID-19 pandemic will take years to process. A United Nations study revealed that 81% of the world's workforce of 3.3 billion people had their place of work fully or partly closed during the outbreak. Meanwhile, the International Monetary Fund (IMF) has been quick to ominously draw comparisons with the Great Depression of the 1930s.
Lockdown measures and stricter import rules have impacted international trade, as interdependence between global value chains have recorded a drop. The definition of globalisation will evolve and a reconfiguration of company targets are inevitable.
On the other hand, digitalisation now appears to be a clear solution. Businesses that are able to establish a robust technical infrastructure by digitally transforming the operating models of their functions are in good stead.
As businesses prepare a recovery strategy, the role of tax departments is crucial. The OECD and national tax authorities have already started adapting to the changes, shaping policy in a way which strives for continuity amid the disruption.
Likewise, businesses are carefully coordinating their investments, indirect tax and transfer pricing responses in the wake of an evolving tax landscape.
This guide also considers how businesses are protecting their human resources, rewriting their finance functions and preparing for inevitable changes to payroll, as a range of business continuity plans are assessed.
The rest of the world eagerly watches on as the Asia-Pacific region takes the lead on the long road to COVID-19 recovery. We hope that you enjoy hearing from the tax experts leading the progression in our first EY Asia-Pacific guide.
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