Selecting the Right International Tax Software: A Guide for Growing Businesses

Most companies expanding globally would agree that navigating international tax compliance is incredibly complex and time-consuming.

By leveraging the right tax software solution, however, businesses can automate compliance across global operations and unlock new growth opportunities with greater efficiency.

In this guide, we'll compare the top international tax software tools on the market, analyzing key factors like integration capabilities, support resources, and implementation costs to help growing companies select the optimal solution for their needs.

Introduction

As a growing business operating internationally, choosing the right tax software is crucial for effectively managing your financial reporting, tax compliance, and global operations. With the right software, you can automate tax calculations, generate financial reports, access real-time data, and ensure compliance across countries.

When evaluating international tax solutions, key aspects to consider include:

Compliance - The software should help you stay compliant with constantly evolving international tax laws and regulations. It should have up-to-date tax rates and forms for countries you operate in.

Integration - Seamlessly integrate the tax software with your existing systems like accounting software, ERPs, ecommerce platforms etc. This enables efficient financial workflows.

Multi-language support - As you expand globally, make sure the software has multi-currency and multi-language capabilities to run localized operations smoothly.

Scalability - Your tax and financial needs will evolve as the business grows. Choose software that can scale capabilities as required without heavy customization needs.

This guide covers what to look for when selecting international tax software along with tips for implementation and vendor selection. Let's explore these key factors to make an informed software decision for your expanding business.

What software does Deloitte tax use?

Deloitte utilizes a wide range of tax software to meet the diverse needs of its clients. As one of the "Big Four" accounting firms, Deloitte offers tax preparation and advisory services for businesses of all sizes across numerous industries.

To streamline tax processes and enable efficiency, Deloitte leverages cloud-based tax software like Vertex, Sovos, Thomson Reuters ONESOURCE, Corptax, and Oracle Tax Reporting Cloud. These SaaS solutions provide automation for direct and indirect tax calculations, reporting, and compliance.

Specifically for indirect taxes, Deloitte deploys Vertex tax software for sales and use tax and Sovos software for 1099 reporting and information returns. These tools integrate with major ERPs to determine tax obligations and file necessary returns.

For direct income taxes, Thomson Reuters ONESOURCE offers a unified platform for corporate tax provision, compliance, transfer pricing, and more. Meanwhile Corptax and Oracle Tax Reporting Cloud focus on automating global corporate tax processes from start to finish.

In addition, Deloitte leverages robotic process automation (RPA) to eliminate repetitive manual tasks and accelerate workflows. Bots can extract data, run validations, complete forms, submit filings, and interface with government portals automatically.

By combining specialized tax technologies with automation, Deloitte builds high-performance solutions tailored to each client's unique needs and objectives around tax reporting. This enables businesses to scale operations efficiently while remaining compliant and minimizing risk.

Which tax software is best for tax preparers?

As a growing business looking to optimize taxes, it's crucial to have the right software in place. With so many options on the market, selecting international tax software tailored to your needs can be challenging. I'll guide you through key factors to consider and provide actionable recommendations on finding the best solution for your business.

Ease of use

When evaluating tax software, ensure the platform is intuitive and easy to navigate. Complex, convoluted interfaces lead to wasted time and frustration. Prioritize solutions with clean designs, logical workflows, and ample training resources. Cloud-based software with responsive support can facilitate rapid mastery for you and your team.

Integration capabilities

Seamlessly integrating tax software with your existing systems streamlines workloads. Seek solutions that automate data imports, connect to business applications via API, and centralize processes company-wide. Platforms like Xero, for example, allow two-way syncing between accounting and tax applications. The efficiency gains from proper integration are immense.

Compliance expertise

Tax codes evolve continuously across jurisdictions. Your software should proactively ensure compliance wherever you operate, such as automatically applying updated international tax rates. Leverage advanced capabilities like AI-powered auditing tools to guarantee adherence and avoid manual oversight. Geographically diverse solutions tailored to cross-border needs are ideal.

The right tax software consolidates workflows, guarantees compliance, and enables strategic optimizations. As your business scales globally, purpose-built solutions become critical. Take time selecting a future-proof platform that grows with your international ambitions. Reach out for personalized advice on tailoring tax software to your operations.

What is Wolters Kluwer products?

Wolters Kluwer offers a wide range of software, solutions, and services for tax and accounting professionals. Some of their key products in this area include:

CCH Axcess Tax

This is an end-to-end tax preparation and compliance solution designed for accounting firms and tax professionals. It features automation tools to improve efficiency, collaboration features, and analytics to uncover new opportunities. Key capabilities include tax return preparation, planning, research, workflow management, client portals, and document management.

CCH ProSystem fx Tax

This is professional tax preparation software tailored for CPA firms. It enables collaboration across the firm and has built-in analytics for identifying profit opportunities. The software covers individual, business, estate, trust, gift, sales, payroll and other tax types.

CCH IntelliConnect

This comprehensive online tax research platform provides access to guidance, insights and analysis. It includes searchable repositories covering federal and state tax codes, court cases, IRS rulings and more. This enables tax professionals to efficiently find answers to tax questions.

By offering specialized tax software and research platforms, Wolters Kluwer aims to provide solutions to simplify complex tax workflows for accounting firms and professionals. Their focus areas like automation, analytics and research help customers work smarter.

What does tax software do?

Tax software is designed to help individuals and businesses file taxes correctly and efficiently. It automates much of the tax preparation process by guiding users through tax forms, importing relevant financial documents, calculating taxes owed, and identifying potential deductions or credits.

Specifically, tax software can:

Import financial documents like W2s, 1099s, and bank statements to auto-fill tax forms
Walk users through interview-style questions to determine which tax forms apply
Perform complex tax calculations based on latest IRS rules and tax code
Identify tax deductions and credits users qualify for to reduce tax liability
E-file completed tax returns directly to the IRS and state agencies
Provide audit support if needed

The key benefit of using tax software over manual preparation is ensuring accuracy and getting the maximum refund. The software stays up-to-date on the latest tax laws and prevents errors that could lead to IRS penalties or overlooked deductions. This automation and intelligence saves significant time and effort during tax season.

For most filers, tax software provides everything needed to file federal and state tax returns correctly the first time. This makes it easier to get refunds faster while avoiding common taxpayer mistakes. Sophisticated tax prep software platforms like Drake Tax can handle even complex tax situations for high net worth individuals and businesses.

Deciphering International Tax Compliance for Growth

As a growing business expands globally, it is critical to understand the complex international tax laws and requirements to remain compliant and avoid penalties. Properly managing cross-border tax obligations enables companies to access global opportunities while minimizing risk.

Key Differences in International Tax Systems

International tax systems have major differences in rates, rules, and compliance requirements that companies must navigate:

Tax Rates - Statutory corporate income tax rates range widely, from 9% in Hungary to 34% in France. Understanding the rates in each market is critical.
Territorial vs Worldwide Tax - Some countries tax only income earned within their borders (territorial), while others tax worldwide income of resident businesses (worldwide).
Transaction Taxes - Many countries have special taxes on transactions, like Europe's Value-Added Tax (VAT) system. VAT registrations and filings are often required.
Tax Incentives - Countries offer tax holidays, reduced rates, and other incentives around key activities like R&D and manufacturing to attract business investment.
Accounting Rules - The GAAP accounting standard used impacts how taxable income is calculated country-by-country. Keeping consolidated and local books compliant is key.

Mastering these key differences is the foundation for multi-jurisdictional tax compliance. Resources like "" can provide up-to-date, cloud-based guidance.

Common International Tax Filings

Major tax filings that globally expanding companies face include:

Corporate Income Tax Returns - Annual tax returns declaring local taxable income must be filed per country to report earnings and claim deductions, credits, and incentives.
Value-Added Tax (VAT) Returns - In ~160 countries with VAT systems, companies must file monthly/quarterly returns outlining VAT collected from customers and paid to vendors to settle tax liability.
Withholding Tax Reporting - Withholding taxes are often imposed on cross-border payments of dividends, interest, royalties and other items. Reporting and remittance filings are due regularly.
Transfer Pricing Documentation - Multinationals must submit reports affirming cross-border transactions between affiliates are conducted at "arm's length" as if between unrelated parties.

Staying compliant with tax return filings across borders is challenging but required. Using "" for automated VAT, corporate tax, and withholding solutions can vastly simplify compliance.

Utilizing Tax Treaties Strategically

Pursuing global opportunities requires checking for possible bilateral tax treaties between countries that provide beneficial policies:

Lower Withholding Rates - Treaties often reduce or eliminate withholding taxes on cross-border dividends, interest, royalties and fees between treaty countries.
Tax Sparing Credits - Some treaties require a residence country to provide foreign tax credits for taxes "spared" via incentives in source countries.
PE Protections - Treaties outline thresholds for creating a "permanent establishment" with taxable presence in a country, protecting foreign businesses from certain taxes.
Mutual Agreement Procedures - When disputes arise regarding treaty interpretation or application, prescribed MAP processes facilitate equitable resolution.

Structuring global activities to optimize treaty access requires expertise given the intricacies, but doing so reduces tax friction of border-crossing business. Services like "" can guide proper planning.

Navigating Transfer Pricing Complexities

Multinational transfer pricing policies that determine transactions between affiliated entities face rising scrutiny. Regulators challenge non-arms-length pricing that artificially shifts income:

Transaction Benchmarking - Companies must benchmark intragroup pricing of goods, services, intangibles, and financing to show alignment with fair market value.
Contemporaneous Documentation - Early-stage transfer pricing documentation must be prepared detailing compliance with arm's length principle for specified transactions.
Country-by-Country Reporting - Large multinationals must file reports outlining global allocation of income, taxes paid, employees, assets, and key activities in each tax jurisdiction.
Managing Disputes - Despite best efforts, transfer pricing assessments and penalties still occur regularly and require time-intensive appeals management to resolve with regulatory authorities.

Proactively developing air-tight transfer pricing documentation and defenses across borders is crucial to avoid surprise tax bills and shore up profits. International tax experts like "" are invaluable partners for the process.

Using automated international tax solutions like "" enables growing businesses to access global opportunities while ensuring compliance with a complex web of tax obligations across borders. Their tax technical experts and advanced tax reporting technology can provide the confidence needed to make strategic investments pay off.

Key Capabilities of International Tax Software

The right tax software centralizes global financial data and automates complex international tax calculations, filings, and compliance. As a business grows internationally, manually managing financial data, tax compliance, and filings across countries becomes extremely difficult. Relying on generic tax software also may not address the nuances of international tax codes.

Instead, investing in specialized international tax software tailored to multi-national needs enables accurate tracking, planning, and compliance across global operations.

Consolidating Global Financial Data with Cloud-Based Solutions

The software should easily consolidate financial data from international subsidiaries and operations into a single, accurate view. Rather than piecing together financials from disjointed spreadsheets or statements, an international tax solution offers:

Cloud-based centralization of global accounting data, avoiding versioning issues or data silos.
Multi-currency support with automated currency conversions and translations.
Tools to map intercompany transactions and transfer pricing policies.
Dashboards to view real-time analytics on global profit and loss statements.

With financial data harmonized in one secure platform, tax and finance teams gain better visibility to make strategic tax planning decisions.

Automating Key Calculations and Compliance Reports

Look for a system that handles international tax provisions, transfer pricing documentation, IC-DISC calculations, foreign tax credit tracking, and more. Manual calculations are not only time-consuming but also prone to errors. Specialized software enables:

Automated multi-jurisdictional tax provisions that consider varying rates, laws, deferred taxes, uncertain positions, and more.
Transfer pricing analysis and reports to defend pricing policies.
Tax effective supply chain management via IC-DISC export benefit calculations.
Tools to recognize foreign tax credits to avoid double taxation.

Such automation reduces days spent on computations to just hours while improving accuracy.

Streamlining Tax Return Filings for Tax Preparers

The software reduces days or weeks of manual preparation to automatically file VAT, corporate income tax, withholding tax reports, and other returns. Instead of collating data to fill out forms, it should:

Auto-populate international tax forms and filings after validating inputs.
E-file directly to tax authorities after appropriate review.
Ensure filings adhere to each country’s e-filing guidelines.
Provide an audit trail showing how numbers were calculated.

By managing this intensive, detail-oriented process, international tax software alleviates administrative headaches for tax preparers.

Providing Audit Support and Documentation

It should organize transfer pricing policies, research, and documentation to defend against audits in any country. Software equips teams to:

Structure transfer pricing documentation as per OECD guidelines.
Access databases of comparable data to justify policies.
Manage statutes of limitations and deadline tracking.
Have version control for documentation.

Robust audit support improves defensibility and minimizes adjustment risks globally.

Specialized international tax software centralizes global financial data, keeps pace with constantly evolving regulations, while automating calculations, filings, and compliance. Rather than tackling this manually, having the right technology partner fosters strategic growth for multi-national businesses. Evaluating solutions that excel at consoliation, automation, streamlining, and audit support facilitates smarter global tax processes.

Choosing the Best Tax Software for Tax Preparers Without EFIN

As a tax preparer looking to expand your services internationally, selecting the right software can be a daunting task. Many popular options require an Electronic Filing Identification Number (EFIN) to prepare returns, creating barriers to entry. However, with the growth of cloud-based solutions created specifically for the international market, there are now flexible options available that don't require an EFIN.

Key Features to Look For

When evaluating tax prep software for use internationally without an EFIN, focus on solutions that provide:

Built-in international tax support: Seek out software with forms, calculations, and support for international returns to reduce manual work. Prioritize options optimized for your target countries.
Robust cloud capabilities: Cloud-based software enables easy access from anywhere while also providing reliable data security critical for financial data.
Collaboration tools: As a tax preparer, you know the value of working together with clients and teammates. Choose an option allowing seamless collaboration via messaging, document sharing, and review/approval workflows.
Affordable pricing: Pricing models like monthly subscriptions can provide flexibility for smaller preparers without large upfront costs. Evaluate free trial periods to test drives.
Integration capabilities: Integrating tax software with other platforms like CRM software can streamline operations. Review available integrations with tools you use.
Scalability: As your business grows globally, your software needs to scale with it through features like API access, customization options, and storage capacity upgrades.

Top International Tax Preparation Software Picks

Based on the criteria above, two recommended software solutions for preparing international tax returns without an EFIN include:

1. eSignITax

eSignITax provides a secure, cloud-based tax preparation and filing solution tailored specifically for international returns. With out-of-the-box support for over 65 regional tax forms and calculations, eSignITax simplifies international filings. Collaboration is also made easy with client portals, document sharing, and built-in chat features.

2. TaxBandit

Designed for international tax pros, TaxBandit leverages the cloud to support preparing returns from 150+ countries. TaxBandit excels at collaboration through client review and approval workflows. It also enables customization with API access to integrate other tools with TaxBandit for a streamlined process.

Weighing Your Options

As an international tax preparer without an EFIN, leveraging software designed specifically to support global filing needs can unlock new opportunities. Focus on solutions that provide robust collaboration features, flexible pricing, scalability, and customization capabilities to accelerate your international expansion. Test driving options like eSignITax and TaxBandit through free trials can help determine the best fit.

Cloud-Based Tax Software: The Game Changer for International Compliance

As businesses expand globally, tax compliance becomes more complex. Cloud-based tax software provides the flexibility and real-time capabilities needed to manage international tax obligations efficiently.

Scalability for Global Operations

Opening overseas offices or subsidiaries exposes companies to new tax jurisdictions and obligations like value-added tax (VAT) reporting. Cloud software scales with business growth to support additional entities, tax requirements, and higher transaction volumes without expensive upgrades. The flexible subscription model allows companies to add users and features as needed.

The automatic multi-currency handling also adapts well as companies invoice customers and vendors globally in different currencies. By removing scalability constraints, cloud solutions facilitate international expansion and new global market opportunities.

Real-Time Tax Data and Calculations

With company data and tax rules constantly changing across borders, real-time tax determination is essential. Cloud software connects with source data in real-time to identify tax impacts and provide updated calculations.

As an example, when a sales order is created in the company's ordering system, the tax software can instantly access the transaction details to compute sales tax or VAT for the appropriate jurisdiction. Rates and rules are updated continuously so companies don't risk using outdated information resulting in penalties and interest.

Access Tax Data from Anywhere

Operating globally means needing tax data accessible from multiple locations and devices. Cloud platforms centralize tax data and calculations so the information can be accessed via web browsers from anywhere.

Companies can provide international staff, external auditors, and tax preparers access to the same system for collaboration. The flexibility also helps companies react quicker to tax notices and audits through rapid information sharing across borders.

With built-in business intelligence tools, cloud tax software enables real-time reporting and analytics globally. Companies gain better visibility into performance across jurisdictions to make data-driven decisions.

Integrations and Automation

Manually moving data between systems is inefficient. Cloud solutions readily integrate with major ERPs, ecommerce platforms, bank feeds, and other systems through APIs. Transactions and other tax-related data flow automatically to maximize accuracy and speed.

Workflows and rules can also automate manual processes around VAT compliance, global reporting, document management, and more. Staff productivity rises significantly when software handles repetitive, high-volume tasks.

As global operations and tax complexity increases, organizations need software that adapts and provides real-time capabilities. Cloud platforms offer the flexibility, scalability, accessibility, and integration needed to efficiently manage international tax compliance.

Comparing Top International Tax Software Solutions

With globalization enabling more businesses to expand internationally, properly managing multi-country tax compliance is crucial yet increasingly complex. As a tax preparer assisting growing companies, having the right international tax software solution underpinning your advisory services can make all the difference.

Rather than a one-size-fits-all approach, closely evaluate leading software options based on functionality, usability, support, and costs that map to your clients' specific needs across their global operations.

Depth of International Tax Capabilities

The top priority is confirming the software provides the precise multi-country tax automation capabilities required day-to-day. Assess key areas like:

Multi-country calculations, filings, and reporting: Does the solution handle tax provisions and reporting across the countries and entities your clients operate in?
Foreign tax credit tracking: Can it accurately track foreign taxes paid and calculate credits?
Compliance automation: Does it automate processes for VAT, withholding, PE, TP documentation, IC-DISC, and more?
Configurability: Can you tailor calculations and reports to each client's needs?

Selecting software with deep global tax functionality tailored to your clients avoids needing separate country-specific tools or complex integrations.

Integration Ease with Existing Business Systems

Understand how easily each software option ingests high volumes of international transaction data from clients' various ERPs, data formats, and countries. Assess:

Integration capabilities: Does it offer connectors, APIs, or batches for major ERPs like SAP, Oracle, Infor, Microsoft Dynamics?
Data format flexibility: Can data be mapped from multiple formats like XBRL, SAF-T, Excel, CSV, XML?
Country localizations: Are formats like Poland's JPK handled out-of-the-box?
Data validation: What automation exists for validation, reconciliation, Auditor Assistant?

Prioritizing a solution that readily integrates international data from clients' systems cuts manual effort so you focus on high-value advisory.

Quality of Support Resources for Tax Preparers

Evaluate each software vendor's availability of timely support channels, educational resources, and user community forums that empower you to accurately advise clients:

Onboarding assistance: Do they offer personalized assistance configuring the software?
Ongoing support options: Can you easily get answers from phone, email, chat support teams?
User community: Is there an active community to connect with other customers?
Educational resources: Do they offer training videos, guides, weekly webinars?
Multi-language options: Is help content available in languages beyond English if required?

Having access to in-depth global tax resources helps you stay current and quickly resolve client questions.

Comparative Analysis of Pricing and Implementation Costs

A solution with robust capabilities and support must also fit within reasonable software, services, and internal costs. Take a practical view of:

Software licensing model: Is it transaction-, user-, or subscription-based? Which aligns best to clients' needs?
Implementation services: Are experienced consultants available if needed for setup and training?
Ongoing costs: Are there hidden fees for customer support, version upgrades, modules?
Internal training/ramp-up: How significant is the learning curve for your team to use it effectively?

An accurate cost analysis prevents surprise expenses down the road so you choose affordable tax technology. Evaluating international tax software holistically will lead tax professionals like yourself to the best long-term solution matching client needs. Reach out for personalized platform assessments.

Conclusion: Empowering Global Growth with the Right Tax Tools

As a growing business operating internationally, selecting the right tax software is crucial to remaining compliant and empowering continued expansion. With many options on the market, focus on solutions that provide robust functionality for your specific needs and intuitive workflows to maximize user adoption.

Prioritize platforms with strong calculation engines covering complex global tax scenarios. Seek out automated return preparation and filing capabilities across jurisdictions. Support for multiple languages and currencies streamlines processes as you scale globally.

While functionality is critical, don't neglect the end user experience. Employees are more likely to embrace solutions perceived as easy to use with minimal training. Value clarity in interface design, configurable workflows aligned to existing processes, and flexible reporting.

Ongoing support and maintenance considerations also weigh heavily given regular tax code updates. Understand service level commitments, access channels, response times, and expertise breadth among support teams. Proactive advisory regarding changing regulations ensures continuity through evolving requirements.

Finally, calculate total cost of ownership not just license fees. Define all the factors—number of users, returns filed, support needs, etc.—to accurately compare solutions. Weigh ongoing costs against long-term productivity and compliance gains.

The right tax technology solution empowers businesses to expand globally with confidence. Prioritizing functional depth, usability, proactive support, and true total cost facilitates informed decision making when selecting providers. Careful analysis of leading platforms against critical capability and experience criteria allows growing organizations to sustain compliance and fuel additional cross-border growth powered by a strong technology foundation.