Trade rules are pressuring several sectors
The stress related to several professional departments, especially in the tax-related departments is considerable. In the face of Federal and State regulations, as well as international agreements impacting commercial rules. The complexity of the sector is also a factor that might create the necessity of more automatized technologies. With the pandemic going on for the most recent years, there has been a stimulation for the development of new procedures. This means that automation is on the top of priorities as investments in information technology become a major focus.
Increases in competitiveness are challenging
This is also a part of the current tendencies of the market. Many companies are changing as a result of the effects of the pandemic. Every industry was impacted by the same wave of change that was already ongoing. Those alterations are generating the need for more digital collaborations and, certainly, development. Such evolution is not only related to the technology itself but also to the regulatory aspects of the working environment dynamics. A recent research done by the State of Corporate Tax Department showed that 47% of the tributary professionals believe they were operating under the ideal necessary resources. The study was published in the Month of July 2021, this year, by Thompson Reuters, an international leader in fiscal solutions.
Several acquisitions and macroeconomic changes
Within the past two years, specific fiscal job flow developments also have been a factor for such shifts. Certainly, it will be added to the many points that lead to almost like a necessity for adjustments. For the Brazilian professionals, this scenery brings even more challenges because of the entanglement of the National Tributary System. Brazil is considered one of the most complex countries to make business with, according to the Global Index of Corporate Complexity and the Tax Complexity Project. With such complexity, companies are susceptible to making mistakes to even be able to function.
Is constant rework necessary?
According to Kleber Amaro, speaking to the Indirect Tax Research & Content Manager by Thomson Reuters:
The legislation changes in a very short period of time. While the teams are dedicated to the implementation of a certain operation, the rules are adjusted and demand a constant rework […]
With the new automation technologies, this difficult scenario is about to become easier. According to a survey done by The World Bank, Brazilian companies need up to 1,501 hours per year of work to manage taxes. Even with such struggle, they are still prone to make mistakes. This can create more costs due to skipping the usage of mechanisms of exception and reduction of rates.
Overload of obligations
Also, according to the Head of the Solution Center in Thomson Reuters, Luis Fernando Cibella:
There is an excess of attached obligations of municipal, state and federal legislations that makes the process complex and increases the costs of operation […]
So professionals working in the sectors of taxation, accounting, and foreign trade are facing challenges. The biggest one is to bring efficiency to their processes and reduce costs. Strategic planning and risk analysis are part of the process, but now automation might be another major factor that will help Brazilian businesses not only to save but also in terms of efficacy.
Conclusion
In this article, we are discussing the role of automation technologies in the financial and fiscal sectors. Especially in the complexity of the Brazilian regulations. Did you like our latest post? Don’t forget to follow our LinkedIn page for more interesting international news and many other topics related to the Brazilian economic and political challenges!
References
VALOR ECONÔMICO. Novas tecnologias de automação são a aposta dos profissionais tributários para vencer complexidade. Available at: <https://valor.globo.com/patrocinado/thomson-reuters/noticia/2021/10/08/novas-tecnologias-de-automacao-sao-a-aposta-dos-profissionais-tributarios-para-vencer-complexidade.ghtml>.
