Tax Shared Service Center

The 5 success factors for successful centralization of tax-related processes

Today, companies face the challenge of managing tax processes efficiently, transparently, and in compliance with regulations—all while dealing with increasing regulatory pressure, limited resources, and an increasingly decentralized system landscape. This is exactly where the concept of the Tax Shared Service Center (TSSC) comes in, which we offer as a specialized service provider specifically for international corporate groups.

A TSSC noticeably reduces the workload on tax departments, minimizes risks, and creates transparency throughout the entire group – provided that the key success factors are taken into account from the outset. We show you what is important when setting up an efficient Tax Shared Service Center.

1. Focus on standardizable routine activities

The core of a Shared Service Center lies in the bundling of high-volume, repetitive processes. In the tax environment, this includes maintaining tax data overviews, coordinating deadlines, managing group-wide questionnaires, and providing operational support for CbCR and Pillar II preparations. These and many other processes are ideally suited for central control, automation, and quality control – with high efficiency potential.

2. Clear process definitions as a basis

A TSSC thrives on structure. Without a clear process description, there can be no standardization—and without standardization, there can be no scaling. Especially in heterogeneous corporate landscapes, consistent process harmonization pays off after only a short time. Our experience shows that initial successes in efficiency and data quality are visible after just 12-24 months – provided that the processes are clearly documented, system-supported, controllable, and distributed on a role-based basis.

3. Clear distribution of tasks between central functions and group companies

One of the most common stumbling blocks: tasks “accidentally” remain in the decentralized units. To avoid so-called shadow processes, the separation of roles between the shared service center and the national companies must be clearly defined – and actively communicated – before introducing a TSSC. This is the only way to create lean structures with clear responsibilities and maximum impact.

4. Technical integration & system compatibility

A Shared Service Center only works efficiently if the system landscape plays along. Harmonized ERP interfaces, consolidated data sources, automated reminder and monitoring systems – all of this must be planned and coordinated at an early stage. We rely on modular, cloud-enabled tools and interface solutions that also connect heterogeneous IT landscapes with each other.

5. Managing change professionally

A tax shared service center means organizational change – and this can only succeed with internal commitment. The key to success is the early involvement of relevant stakeholders, transparent communication about goals and changes, and the active involvement of CFOs, group tax, finance, and compliance. After all, a shared service center is not an administrative apparatus, but a powerful internal service provider – with a clear mandate, a high level of responsibility for results, and strategic added value.

Our approach: Your tax shared service center – centralized, scalable, practical.

We support corporations in setting up and operating modern tax shared service centers. Our focus is on operational excellence, structured project management, and clear interface responsibility – in close cooperation with internal tax departments and external tax advisors.

Would you like to reduce the workload on your tax function while improving the quality of your data and processes across the group?

Talk to us – we will support you from the concept stage through to ongoing operation.