The tax software market in APAC was valued at US$ 2,832.1 million in 2019 and is projected to reach US$ 7,070.8 million by 2027; it is expected to grow at a CAGR of 12.4% from 2020 to 2027. Rapid developments pertaining to technologies, initiatives from governments, digitalization of economies, and rising disposable income among middle-income class population are the major factors propelling the growth of the overall economy of the region, driving it from a developing to developed phase. APAC is projected to register a fastest CAGR in the global tax software market during the forecast period. The region has strong IT infrastructure and stable software and services offerings, along with leadership positions in developing areas such as robotics. The concept of cloud-based tax software is used to manage regular tax business operations. Additionally, the technology landscape is booming in Asian countries, especially in the sectors such as retail, healthcare, and BFSI. The governments of countries in the region are continuously focusing on investing in the IT operations related to various industries, which enables companies to adopt advanced software and services for simplifying their business process. Therefore, growing digitization is expected to support the growth of the tax software market in APAC.
Based on tax type, the tax software market in APAC was led by the sales tax segment in 2019 with a decent share and is expected to continue its dominance during the forecast period. However, the income tax segment is expected to grow at a high CAGR during the forecast period in the tax software market of APAC. Sales tax software helps to streamline, automate, and integrate the sales tax calculation, management, and reporting. The software is meant for its tax type feature abilities, such as value-added tax, consumer use tax management, and tax return filing; they find and calculate sales tax rates precisely with the advanced validation technology. The software helps in removing the complications and assist in enhancing them. With technological advancements in various countries in the world, several states have begun to file returns and pay taxes electronically with the help of sales tax software. Some states accept credit cards for the tax payment. The growing focus of organizations towards reducing the costs and improving the efficiencies are expected to drive the growth of the tax software market in the region.
The overall size of the tax software market in APAC has been derived using both primary and secondary sources. The research process begins with exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the tax software market in APAC. It also provides an overview and forecast for the tax software based on all segmentation provided with respect to the APAC region. Additionally, primary interviews were conducted with industry participants and commentators in order to validate and analyze the data. The participants who take part in such a process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specialized in the tax software industry. Avalara Inc.; Chetu, Inc.; H & R Block; Intuit Inc.; Sage Group PLC; Thomson Reuters Corporation; Vertex, Inc.; Wolters Kluwer N.V.; and Xero Limited are among the key players present in the tax software market in APAC.