Deloitte has published its 2026 Global Tax Policy Survey, which identifies compliance and complexity as the main tax challenges for multinational businesses.
Based on responses from 1,010 tax and finance leaders across 28 jurisdictions, the survey found that almost 40% see rising compliance, administrative, and reporting requirements as the issue with the biggest impact on their business across the main areas of global tax policy.
The findings suggest the pressure is broad rather than limited to one market or sector. Respondents said the complexity stems from several sources, including Pillar Two compliance rules and the European Union's Carbon Border Adjustment Mechanism.
Some efforts have been made to reduce the burden, including additional safe harbours in the Pillar Two side-by-side package. Even so, 41% of respondents said further simplification of Pillar Two compliance should be a priority.
Public reporting demands are also expected to rise, with 84% of respondents expecting more public tax disclosures and reporting over the next two to three years.
"The rising tide of complexity and compliance burdens is having a huge impact on global businesses," said Amanda Tickel, Deloitte Global Tax and Trade Policy Leader. "For example, 84% of those surveyed expect more public tax disclosures and reporting in the next two to three years, while even in areas like tax digitalization-where simplification might be expected-leaders are becoming less optimistic about near-term benefits."
Digital transition
The survey points to a mixed picture on digital tax administration. Many businesses still expect digital systems to simplify and streamline tax administration, but a sizeable minority see transition costs and added complexity as immediate problems.
Regarding artificial intelligence in tax compliance, 85% of respondents expect positive effects, such as improved accuracy and lower compliance costs. The remaining 15% expect higher implementation costs to be the main effect.
E-invoicing is one of the clearest examples of this caution. The share of respondents who expected it to simplify compliance fell to 36% in 2026 from 59% in 2024.
The survey also asked about Tax Administration 3.0, the OECD concept under which tax processes become far more automated. Four in five respondents said they ultimately expect a positive outcome, while 19% expect higher costs and more complexity instead.
"The reality is a lot has to happen before tax 'just happens'," said Tickel.
Pillar Two effect
The introduction of Pillar Two remains one of the most significant influences on tax planning and reporting. Respondents indicated that the global minimum tax framework is likely to increase tax liabilities and compliance work.
Among respondents, 88% expect to pay more tax as a result of Pillar Two. That suggests the policy is moving toward one of the OECD's central aims, while also adding to concerns over the scale of the reporting and administrative effort involved.
"With Pillar Two now agreed and in its implementation phase, it is notable that a full 88% of respondents expect to pay more tax as a result, which suggests the Organisation for Economic Co-operation and Development (OECD) is on track to achieving one of its policy goals," said Tickel. "However, given the finding that tax leaders are facing a wave of complexity, and a clear contributor to that is Pillar Two, the question is whether the costs of delivering this new tax regime are proportionate."
Incentives in focus
The survey also found that tax incentives are becoming more important as governments compete for investment and skilled workers. Respondents said substance-based incentives and the Pillar Two safe harbour were creating new opportunities rather than closing them down.
According to the findings, 38% expect new tax incentives to emerge from these changes, while 57% expect existing incentives to remain valuable to their businesses. Another 57% said governments are increasing the use or value of tax incentives to attract foreign talent.
Most companies are not fully using sustainability incentives. Just 34% of respondents said they are already making full use of available tax incentives to offset sustainability investments, although 59% said they are actively exploring them.
This suggests many companies still see scope to make greater use of tax relief linked to environmental spending, even as they manage more demanding reporting regimes elsewhere in the tax system.
"Following the agreements on Pillar Two, which bring in minimum levels of profits taxation in many countries, tax incentives are starting to play an increasingly important role in global tax competition," said Tickel.