Tax has long been viewed as a domestic concern, rooted in local laws and national priorities. Yet today, global business, digital transformation, and fast-evolving standards are reshaping that belief. With unprecedented changes in tax rules driven by geopolitical shifts, economic pressures, and rapid technological advances, international collaboration has become a strategic priority for many businesses.
At “The Future of Tax: Global Perspectives for Leaders”, Grant Thornton’s APAC tax leaders surfaced hard truths and practical strategies: from the decade-long journey of BEPS Pillars 1 and 2 to the rise of Digital Services Taxes (DSTs) and the transformation of tax professionals into strategic advisors. The message is clear: sharing best practices across jurisdictions can help Philippine businesses navigate complexity, manage reputation, and seize opportunities.
Navigating tax beyond borders
Vikas Vasal, Global Head of Tax at Grant Thornton International Ltd, underscored that global tax alignment is a practical necessity for businesses operating across jurisdictions. He pointed to the decade-long effort behind BEPS Pillars 1 and 2, where more than 140 countries reached consensus, yet major economies like Europe and the U.S. have not fully implemented the framework. This uneven adoption leaves many Asian countries in a “wait-and-watch” position, but for companies with cross-border presence, compliance obligations already mean more documentation, stricter governance, and expanded reporting.
Pointing out the global macroeconomic factors that shape tax policy and compliance worldwide, Vikas emphasised the fundamental economic shift creating a lot of dichotomy and issues, such as the tariffs imposed by the current US administration. Citing the trust deficit and “twisted geopolitics” disrupting the global supply chain, companies around the world are collaborating to deal with the impact of these tariffs.
Beyond BEPS, the rise of digital services taxes and the automation of information exchange are reshaping compliance expectations globally. For exporters and digital service providers, these changes will affect pricing structures, cost models, and reputation management, making ethical tax standards a critical part of business strategy. Vasal also noted the emerging challenge of taxing the digital economy, saying, “In the future, AI will do our taxes. Until then, we’ll keep doing AI’s taxes.” From servers to algorithms, new tax bases are creating both complexity and opportunity, requiring businesses and professionals to unlearn, relearn, and reskill as technology and policy converge.
As regulations mature, the tax landscape has become a space where technology, transparency, and ethics intersect. Governments are increasingly demanding real-time access to companies’ ERP systems, signalling a future where tax authorities can monitor transactions directly. This shift, combined with global efforts to implement ethical tax standards, means businesses must rethink their approach. Today, tax is a strategic lever for sustainability, influencing decisions on carbon taxes, ESG incentives, and global policy alignment. For leaders, such an evolution underscores a critical truth: tax strategy is now business strategy.
Implications for the Philippine tax landscape
For Philippine businesses, global tax developments are shaping local realities. Major economies may have not fully enforce BEPS Pillars 1 and 2, but the presence of multinationals already imposes compliance obligations. Waiting for formal adoption is not an option; proactive readiness is key.
The rise of digital services taxes adds another layer of complexity. Philippine exporters, whether in technology, services, or digital products, will feel the impact as counterpart markets impose DSTs, affecting pricing structures, cost models, and contractual terms. Beyond financial implications, tax is now a reputational issue. Ethical tax standards and transparency are becoming part of ESG narratives, influencing investor confidence and customer trust. Aligning tax strategies with sustainability goals, leveraging ESG-related tax incentives, and preparing for emerging obligations like carbon taxes is crucial.
Finally, the digitalisation of tax administration will redefine compliance in the Philippines. Governments worldwide are moving toward direct ERP access and real-time data exchange, and similar trends will reach local regulators. This trend demands robust data governance, system readiness, and auditability. For Philippine tax leaders, global trends will shape local compliance—and those who anticipate change will lead the way.
Redefining tax leadership
The role of tax professionals in the Philippines is undergoing an evolution. What was once a function focused on compliance and reporting is now a strategic pillar of business decision-making. From pricing and supply chain design to digital economy taxation, leaders are expected to anticipate global trends, align with evolving regulations, and integrate tax considerations into broader corporate strategies including brand reputation.
Tax leadership now spans four critical dimensions. First, compliance is becoming “always-on,” as governments move toward direct integration with company ERP systems for real-time monitoring. Second, global tax alignment is no longer optional; understanding minimum tax rules and digital economy taxation is essential for businesses operating across borders. Third, tax is emerging as a sustainability lever, influencing decisions through carbon taxes, ESG incentives, and reputation management. Finally, tax professionals must act as strategic advisors, aligning policy frameworks, technology, and business priorities to support growth and resilience.
At the same time, ethical tax standards and ESG-linked incentives are reshaping expectations, making tax a critical component of reputation management and stakeholder trust. Businesses that fail to adapt risk not only penalties but also reputational damage in an era where tax behaviour is part of the ESG narrative.
For Philippine tax professionals, the challenge—and opportunity—lies in reskilling and redefining their role. The future demands expertise in technology-driven compliance, policy interpretation, and strategic advisory. Staying ahead of global developments and technological advancements is essential. Truly, tax leadership today is more than numbers—it’s about shaping the future of business.
As published in The Manila Times, dated 03 December 2025
