Cost pressures top challenge for SEA tax leaders amidst inflation woes

Organisations also cited pressure in handling complex reporting requirements.

Cost pressures have become the biggest challenge for chief financial officers (CFOs) and tax leaders in Southeast Asia, as cost-cutting measures and inflation erode budgets' real value, according to EY.

In response, 41% of SEA respondents prioritize effective budget management, whilst 80% are actively seeking ways to reduce costs.

SEA organisations are also under pressure to handle increasingly complex reporting requirements, such as real-time digital tax filings and compliance with the OECD's BEPS 2.0 global minimum tax of 15%.

Despite this, 83% of SEA respondents anticipate moderate to significant changes in reporting processes to meet these regulatory demands.

Meanwhile, nearly eight in ten SEA leaders are feeling the strain from fewer accountants entering the profession and the retirement of senior staff.

To address this, 64% of SEA respondents view non-degree holders as an important talent source.

Generative AI is increasingly seen as a solution for automating routine compliance tasks, allowing employees to shift their focus to strategic, high-value work.