The 2026 BDO Tax Strategist Survey, released in early 2026, finds that tax leaders are being consulted more often on enterprise decisions while regulatory complexity has become their top risk. Based on responses from 300 senior tax leaders at middle‑market firms, the survey shows a growing strategic mandate for tax functions alongside rising pressure to outsource and invest in technology.
What Happened
According to the survey, 94% of tax leaders said they are invited to weigh in on key business decisions before they are made, an increase of four percentage points from 2025. Involvement in strategic transactions such as mergers and acquisitions rose by nine points, and participation in organizational risk management grew by five points. At the same time, 30% of respondents identified regulatory complexity as their greatest tax risk, more than double the 13% who cited it in the prior year. The share of organizations outsourcing tax work primarily because of regulatory and compliance requirements climbed from 33% in 2025 to 47% in 2026. Seventy‑nine percent of tax leaders plan to increase technology investment this year, yet only a minority report using automation or AI for complex analysis, forecasting, or planning.
Deal, Market, or Regulatory Context
The survey points to several drivers of the heightened regulatory burden. Eighty‑six percent of tax leaders said implementing tax provisions of the OBBBA (Onshoring‑Based Business Activity Act) presents a challenge, and state decoupling from federal OBBBA rules adds further complexity. State and local income and franchise taxes were cited as the largest contributor to total tax liability by 36% of respondents. On the global front, 92% of multinational tax leaders said global tax complexity has substantially increased over the past two years, with 88% pointing to OECD Pillar Two requirements and 87% to transfer pricing audit activity as key challenges. Additionally, 49% of respondents are pursuing transfer pricing reviews, 42% are conducting tariff code reviews, and 25% are pursuing duty drawback strategies to manage tariff exposure.
Why It Matters for Financial Institutions
For banks, fintechs, payments processors, insurers, and wealth managers, the survey underscores that tax is no longer a back‑office compliance function but a participant in strategic decision‑making. The high rate of pre‑decision consultation suggests that tax insights can affect pricing, product structuring, and capital allocation. However, the limited adoption of sophisticated automation and AI means many institutions may still rely on manual processes, increasing the risk of errors or missed opportunities as regulations evolve. The rise in outsourcing driven by compliance needs indicates a shift toward external expertise, which could affect cost structures and internal control frameworks. Financial institutions that integrate tax early in product development and risk management may be better positioned to navigate OBBBA implementation, state‑level variations, and global tax reforms.
Investor or Industry Implications
Investors should monitor how companies manage the growing tax risk landscape. The data shows that 93% of multinational tax leaders link increased global tax complexity to higher costs, and 91% report greater reliance on external advisors and technology solutions. This trend may pressure margins and increase operating expenses for firms with cross‑border operations. Meanwhile, the low rate of defined cross‑functional processes—only 38% have a formal way for teams to engage the tax function on tax‑relevant matters—suggests a potential gap in risk governance. Investors may want to assess whether portfolio companies are investing in tax technology interoperability, building internal tax‑risk frameworks, or leveraging outsourcing strategically to control costs while maintaining compliance.
Key Takeaways
- 94% of tax leaders are consulted before key business decisions are made, up four points from 2025.
- Regulatory complexity is the top tax risk for 30% of respondents, more than double the 13% reported in 2025.
- 79% plan to increase tax technology investment, but only a minority use automation/AI for complex analysis, forecasting, or planning.
FinanceInsyte's Take
The survey highlights a widening gap between tax’s growing strategic influence and the readiness of organizations to support that role with integrated processes and advanced technology. Decision‑makers in financial services should watch for how firms close the process gap—by establishing formal cross‑functional tax engagement, investing in interoperable tax tech, and balancing outsourcing with internal capability. Until those foundations are strengthened, tax’s impact may remain reactive and person‑dependent, limiting its ability to mitigate financial risk and drive resilience amid ongoing regulatory change.
Source: Businesswire
