Demand for International Tax Accounting Professionals Soaring as Indirect Taxes Gain Significance
Demand for international tax professionals is absolutely soaring. So says, executive recruiting firm, A.E. Feldman. One main driver behind the demand: the global marketplace is highly competitive and the ability of many firms to operate profitably in diverse geographic markets is vital. Operating globally however gives way to a number of legal, finance and global accounting issues. Multinational firms must comply with international laws on pensions and business practices and tax. Now, competition between countries to attract and retain foreign investment is driving down corporate tax rates around the world, complicating matters for companies operating globally.
A recent study conducted by KPMG indicates that governments are seeking to make up the shortfall in tax revenues by increasing indirect taxes, which may require companies to shoulder greater compliance and accounting standards. This may be just one reason why demand for global tax professionals is soaring. According to A.E. Feldman, international tax accounting jobs are very hot right now. Firms are competing for experienced candidates who can navigate the intricacies of statutory reporting and tax compliance, forge cultural and political alliances, and create key operational strategies while mitigating risk.
All businesses, buying, selling or investing internationally, are confronted with indirect taxes. An indirect tax is tax, such as a sales tax or value-added tax (VAT), which is levied on goods or services rather than individuals. Ultimately, indirect tax is paid by consumers in the form of higher prices.
Globally, governments are increasingly imposing indirect taxes, including sales taxes, general services tax, business tax, VAT, customs duties, energy taxes, environmental taxes and excises. And unless companies manage indirect taxes properly, profitability may decline as risks increase.
This is the main conclusion of KPMG International’s latest survey, which traks both corporate and indirect tax rate trends. The study finds that not only do indirect taxes appear to be playing a more significant role in the revenue-gathering strategies of many countries around the world, but they also have major implications for companies, their tax strategies and their accounting systems.
According to KPMG, one of the advantages for governments of indirect taxes over corporate profits tax is that they supply a steady flow of funds throughout the year, rather than lump sums at widely spaced intervals. To deliver this benefit, companies, in their capacity as tax collectors, have to have accounting systems that can provide accurate, real time information on transactions and the associated tax liability. Keeping systems up to date with tax authorities, information requirements, the study finds, is a major cost and resource issue for the business sector. KPMG concludes that as indirect taxes become more important to governments, regulators are intensifying their scrutiny of companies, tax systems to satisfy themselves that tax revenues are not at risk
Now, as indirect taxes appear to be taking on more significance, A.E. Feldman reports that demand for global tax professionals is huge. Job seekers looking for international tax accounting opportunities are in a prime position to benefit from this trend. A.E. Feldman,s President, Mitch Feldman, says professionals who are able to master the global aspects of business are in high demand by the top firms.
