Global Tax Software Market 2021 (Includes Business Impact of COVID-19)

                                          
Report updated on 11th September, 2021: Global Tax Software Market 2021 (Includes Business Impact of COVID-19)
Global Tax Software Market Trends, Analysis, Applications, and Forecast & Growth Rate: 2019 “2028 is a recently tracked report by Trusted Business Insights research team. The report includes growth supporting and limiting factors, trends, and opportunities. In addition, the dynamics section includes opportunity map analysis, value chain analysis, PEST analysis, and Porters Five Forces analysis. Numerical data included in the report are growth rates and revenue share in percentage and revenue in US$ Mn for the global market, region-wise and country-wise markets and segment-wise markets. The key companies operating in the global market are profiled in the report with details such as company and business segment revenue, website and contact number, market footprint, competitive analysis, and SWOT analysis. To provide holistic view of the target market, the report has been bifurcated based on component, tax type, deployment type, end use, industry vertical, and region.
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The global Tax Software market size was valued at USD$10.21 billion in 2020 and is projected to reach USD $23.25 billion by 2030, and is anticipated to expand at a CAGR of 8.80% over the forecast period from 2020 to 2030.


Tax Software: Overview


Tax software, or tax compliance software, is developed and designed to aid companies and individuals to file income and corporate tax returns. It ensures streamlining and systematic process of filing returns. This software helps to simplify the procedure of filing income tax returns, takes the user through forms, and calculates the companys or individuals tax obligations automatically. The key objective of developing the software is to enable easy payment of tax and file returns and reduce human error.


Global Tax Software Market: Dynamics


Increasing demand for tax software by various end-use industries owing to its advanced features that enable smooth process of filing returns and paying income or corporate tax and other procedures is a key factor projected to drive the global tax software market growth in the forthcoming years. In addition, increasing penetration of Internet, rising number of digital solutions, and growing adoption of electronic accounting are factors projected to boost the tax software market growth. Moreover, growing adoption of tax software in the BFSI sector in order to analyze a large volume of data and avoid losses is another factor fuel global tax software market growth. Furthermore, increasing technological advancements in tax software automation and rising investments by end-use industries to purchase automated systems for tax calculations and filing returns are among other major factors projected to support global market growth.

However, concerns related to networking issues and data security for cloud applications is a major factor restraining global tax software market growth to some extent.


Global Tax Software Market: Segment Insights



By Component Insights:


Among the component segments, the service segment is estimated to account for significant revenue share in the market owing to constant need for services pre and post-installation of the software. The software segment is projected to register higher growth rate owing to need for updating software after a certain period of time.


Deployment Type Segment Insights:


Among the deployment type segments, the On-premise segment is recorded a higher share in terms of value in the global market in the last year. On-premise deployment permits real-time access to documents and ensures safety of search data. These are factors driving growth of this segment in the global market.


Industry Vertical Segment Insights:


Among the industry vertical segments, the BFSI segment is estimated to record highest revenue share and is projected to register moderately higher CAGR in the global market over the 10-year forecast period, owing to increasing demand for software-based data storage and services for smooth functioning of tax process and to reduce human errors. The telecom & IT segment is expected to record second-highest revenue contribution in the market owing to rapidly growing telecommunication and information technology (IT) industry and need for automated systems for handling tax issues.


Global Tax Software Market: Region Insights


The North America tax software market is expected to account for major share in terms of value in the global market and is projected to record the highest revenue share in the years to come. Early and higher adoption of advanced technologies and security solutions in public and private organizations and rapidly growing US and Canada economies are resulting in need for automated systems to reduce dependency on human workforce. These are major factors driving growth of the market in countries in this region. The Asia Pacific tax software market is projected to register significant growth rate in terms of value over the 10-year forecast period. Rising awareness regarding the advantages of automated software systems for tax payment and return filing among individuals and enterprises and rapid growth of end-use industries in economies such as Japan, Australia, China, India among others are major factors fueling growth of the market in this region. The Europe market is estimated to record second-highest revenue share in the global market. Revenues from the markets in MEA and Latin America are projected to expand at a slower rate owing to steadily growing economies in the regions and low adoption of automated systems and software.

Global Tax Software Market Segmentation:

Segmentation by Component:

  
Software
  
Services

Segmentation by Tax Type:

  
Sales Tax
  
Income Tax
  
Others (VAT, Service Tax, Estate Tax)

Segmentation by Deployment Type:

  
Cloud
  
On-Premise

Segmentation by End Use:

  
Individual
  
Commercial Enterprises
  
Small and Medium Enterprises
  
Large Enterprises

Segmentation by Industry:

  
BFSI
  
IT &Telecom
  
Government
  
Healthcare
  
Retail
  
Transportation
  
Manufacturing
  
Energy and Utilities
  
Others (E-commerce, Education, etc.)


Key Market Players included in the report:


  
APEX Analytix
  
Automatic Data Processing (US)
  
Avalara (US)
  
Blucora (US)
  
Canopy Tax (US)
  
CCH.
  
CFS Tax Software Inc.
  
Chetu Inc. and HRB Digital LLC
  
DAVO Technologies (US)
  
Defmacro Software (India)
  
Drake Enterprises (US)
  
H&R Block (US)
  
Intuit (US)
  
LumaTax Inc.
  
Ryan
  
Sage Tax & Financial Solutions
  
Sailotech (US)
  
Sales Tax DataLINK
  
SAP SE (Germany)
  
Service Objects Inc.
  
Sovos Compliance (US)
  
Taxback International (Ireland)
  
TaxCloud (US)
  
TaxJar (US).
  
TaxSlayer (US)
  
The Federal Tax Authority LLC
  
Thomson Reuters Corporation
  
Vertex Inc.
  
Wolters Kluwer N.V. (Kluwer Publishers and Wolters Samsom)
  
Xero Limited
  
Zoho Corporation Pvt. Ltd.


Below are the key development related to Tax Software Market in 2020 and 2021.


June 2021: Tax Software Company Sovos Buys Stupendo. Stupendo provides automated digital invoicing services and processes that are regulated by the IRS of Ecuador. Source

March 2021: Dallas-Headquartered Ryan Acquires PTX Tech To Strengthen Its Property Tax Software Solutions. Ryan has acquired PTX Tech to develop and deploy integrated software and data solutions for its clients. Both companies seek to improve the customer experience and provide their clients with valuable tech. Ryan, a global tax services and software provider, has acquired Atlanta, Georgia-based PTX Tech, a specialist in property tax data and software. Source

March 2021: Ryan Enhances Property Tax Software Solutions with the Acquisition of PTX Tech. Ryan, a leading global tax services and software provider, announced the acquisition of PTX Tech (PTX), a leading property tax data and software firm based in Atlanta, Georgia. PTX offers a suite of products that provide clients with critical property tax data from thousands of taxing jurisdictions across the United States. PTX’s expertise is in extracting, standardizing, and incorporating assessment and tax bill data into a proprietary database to make it readily available and consumable by clients. The company’s products offer clients electronic management of their property tax records, ensuring timely and accurate payment and reduced manual effort. PTX also provides county-specific tax-roll data to help clients with their benchmarking and equity comparison efforts. Source

December 2020: Sovos Acquires Payroll Tax Software Company LTtax Global tax software provider Sovos has acquired LTtax, a New York-based provider of payroll withholding and unemployment tax software serving some of the largest retailers, financial institutions and insurers operating in the United States. Global tax software provider Sovos has acquired LTtax, a New York-based provider of payroll withholding and unemployment tax software serving some of the largest retailers, financial institutions and insurers operating in the United States. The acquisition brings LTtax’s withholding capabilities for wage income to Sovos’ non-wage income withholding offerings, for a more complete and robust tax information reporting solution. Source

October 2020: Avalara acquires Transaction Tax Resources for $377M. Resources, Inc., a tax content provider with a high-powered customer list, for approximately $377 million in cash Monday. TTR, headquartered in McMinnville, Oregon, offers information on U.S. sales and use tax rates, laws, software, and customer support to some of the largest and most complex companies and their internal tax teams. TTR will bring more than 1,400 customers to Avalara, representing more than 30 percent of the Fortune 500. They include the largest or second largest company in each of 40 industries, nine of the top 10 healthcare companies, eight of the top 10 telecommunications companies and five of the top 10 IT services firms. TTR will operate as a subsidiary of Avalara and will integrate its products with Avalara’s automation tools, which handle sales and use taxes, excise taxes, communications taxes, alcohol and beverage taxes, and other types of U.S and international taxes. Avalara works every day to improve and expand our compliance conten. Source

February 2020: insightsoftware Announces the Acquisition of Longview Solutions. Deal furthers companys strategy to digitally transform the Office of the CFO; expands market-leading capabilities in financial reporting, consolidation, budgeting and planning, and adds tax reporting. insightsoftware, the global leader in enterprise resource planning (ERP) and enterprise performance management (EPM) reporting solutions, announced it has acquired financial planning and tax software provider Longview. Terms of the deal were not disclosed. Based in Toronto, with additional offices worldwide, Longviews solutions enable CFOs and corporate finance and tax teams to be strategic leaders through software that elevates planning, consolidation, tax reporting, and analytics from the underlying data collection process. The company supports more than 100,000 users at 700 enterprise customers in more than 100 countries. Serving a diverse range of industries from financial services, technology, consumer packaged goods, and energy to higher education, construction, and industrials, Longview works with blue chip companies worldwide, including Deloitte, Samsung, Shell, BMW, Vodafone, Hasbro, and more. The acquisition bolsters insightsoftwares global presence and customer base by building on its strategy to deliver market-leading solutions that automate and simplify the complex financial and operational reporting requirements of the Office of the CFO. As data volumes and complexity grow exponentially, insightsoftwares customers will benefit, in particular, from the ability to connect to and make sense of tax, close, and consolidation data, to drive greater financial intelligence across their organizations. The acquisition of Longview also marks insightsoftwares entrance into the corporate tax market, which is a high-growth area as multinational companies look to automate the collection, analysis, and reporting of tax implications across various countries to improve profitability and strategic decision-making. As an example, multinational customers use Longviews Operational Transfer Pricing (OTP) solution to perform analytics, run scenario analyses, and then build, execute, and manage intercompany transactions and optimize the tax impact across operations in different tax jurisdictions. Source