The role of the corporate tax leader is evolving from a compliance function to a strategic C-suite advisor, driven by complex policy changes and business dynamics, according to the 2025 BDO Tax Strategist Survey.

Why it matters: This shift places tax expertise at the center of major business decisions. The survey found 90% of tax leaders are now invited to weigh in on strategy before decisions are made, with their recommendations carrying significant weight.

The big picture: Growing business complexity and a dynamic policy environment are the primary catalysts for this change. CFOs are instrumental in elevating the tax function, with 92% of tax leaders reporting that their CFO brings them into important strategy conversations.

By the numbers:

  • 41% of tax leaders cite changes to U.S. tariffs as a top policy challenge.
  • 36% identified changes to IRA clean energy credits as a major concern.
  • 67% of organizations plan to increase their investment in tax technologies in the next year.
  • 55% plan to boost investment in recruiting, hiring, and retention for their tax teams.
Zoom in: While two-thirds of organizations plan to increase spending on tax technology, implementation faces significant hurdles.

  • Key challenges include data quality, managing new systems, and addressing internal skills gaps.
  • Despite a focus on AI, less than half (44%) of organizations report using the data management systems essential for leveraging AI platforms effectively.
  • On the talent front, outsourcing remains a critical tool for navigating talent shortages and resource constraints, even as companies increase internal hiring.
What they're saying: "Tax is increasingly taking a seat center stage in decision making,” said Matthew Becker, National Managing Principal of Tax at BDO USA. “We are seeing more tax teams step up as key advisors to the C-suite, helping navigate policy change, shape strategy, and drive growth.”

What to watch: Tax leaders expect their greatest future risks to come from rapid growth (22%), technology challenges (20%), and organizational transformation (17%). Their ability to manage these risks while successfully integrating new technology will determine if they can solidify their new role as core strategic advisors.

View the 2025 BDO Tax Strategist Survey here.

SOURCE: BDO USA

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