Businesses around the world are increasingly embracing digital tax transformation, with artificial intelligence (AI), digital tax administration and e-invoicing expected to reshape tax compliance despite mounting concerns over implementation costs, complexity and data security, according to the Deloitte 2026 Global Tax Policy Survey.
The survey found that organisations are largely optimistic about the potential of AI-powered tax systems to improve efficiency and regulatory compliance. However, respondents cautioned that the benefits of digitalisation will only be fully realised if governments and technology providers reduce the cost and complexity associated with implementation.
AI Emerging as a Key Driver of Tax Compliance
According to the survey, AI-based compliance software is expected to significantly improve tax operations, with 29 per cent of respondents identifying improved accuracy as the biggest benefit. Other expected gains include increased operational efficiency (18 per cent), stronger regulatory compliance (15 per cent), improved enterprise-wide tax strategy (14 per cent) and lower compliance costs (11 per cent).
However, businesses also acknowledged that deploying AI comes with challenges. About 15 per cent of respondents cited implementation costs and complexity as major concerns, while many said AI-generated audit findings could become increasingly difficult to interpret.
The findings also indicate that AI is expected to enhance tax audits, with 68 per cent of respondents anticipating faster and more efficient audit processes, while 59 per cent believe AI will enable tax authorities to make more targeted information requests.
Digital Tax Administration Gains Momentum
The report shows growing adoption of Digital Tax Administration (DTA) worldwide, with 63 per cent of Organisation for Economic Co-operation and Development (OECD) countries already making progress towards implementation. Nevertheless, only 27 per cent of respondents reported seeing tangible business benefits from these initiatives so far.
Businesses expect Digital Tax Administration 3.0 to reduce the time and resources required for tax compliance, strengthen collaboration with tax authorities and improve customer service. At the same time, respondents warned that implementation costs and administrative complexity remain significant obstacles.
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E-Invoicing Adoption Continues Amid Cost Concerns
The survey also highlights continued expansion of electronic invoicing (e-invoicing) as governments accelerate tax digitalisation initiatives.
While businesses acknowledged that e-invoicing simplifies tax compliance and streamlines reporting, many said its rollout has introduced additional investment requirements and operational complexity.
Compared with the previous year, fewer organisations now expect e-invoicing to simplify compliance, while more respondents cited implementation costs as a primary challenge.
Data Security Tops Business Concerns
As digital tax systems become more widespread, businesses identified data protection as their greatest concern.
Nearly 69 per cent of respondents said safeguarding confidential financial and commercial information through e-invoicing is their top priority. Other concerns include reducing cyberattack risks during data transmission (61 per cent), ensuring secure data storage and management (58 per cent), establishing effective data-sharing agreements with third-party providers (57 per cent), and obtaining appropriate cyber insurance (54 per cent).
Commenting on the findings, Hayley McKelvey, Chief AI Officer at Deloitte, said digital tax transformation offers significant opportunities but warned that organisations continue to face substantial implementation challenges.
She noted that while the advantages of digitalisation are clear, the cost and complexity associated with operationalising digital tax systems remain a major reality for businesses. McKelvey added that future policy development should focus on reducing deployment costs while leveraging technology to help organisations fully realise the promised benefits of digital compliance.
