KPMG’s Tax Engine Roars Ahead
The Big Four rivalry just got a little spicier. KPMG says its global tax and legal wing clocked a 7.5% jump in revenue for FY 2025, crediting,what else?,a surge in AI tools and frantic client demand for help navigating global tax reform, International Tax Review reports.
KPMG’s broader results, released a day later, underscored the point. Tax was the firm’s fastest-growing service line, helping it outpace its Big Four peers in overall growth, according to the Financial Times. “Clients want certainty in an uncertain world, and tax touches everything,” one senior partner told the paper.
Beyond raw numbers, KPMG highlighted two accelerants: an internal AI platform that automates compliance reviews and a beefed-up global tax reform team tracking OECD rules in 140+ jurisdictions. “We’re investing where clients feel the pain the most,” the firm said.
Why It Matters
The reaction was swift: rivals privately concede that KPMG’s double-down on tax tech is creating “real competitive pressure,” the FT noted. For multinationals, more horsepower inside KPMG means quicker advice on thorny issues like Pillar Two top-up taxes and the OECD’s Crypto-Asset Reporting Framework (CARF). Translation: expect fee battles and recruiting wars across the advisory landscape.
Around the Tax World
- Vienna joins the club. INPACT added Dr Bernhard Vanas Tax Advisory to its alliance, expanding the network’s European bench for cross-border structuring (International Accounting Bulletin).
- Sweden tightens the purse strings. A Swedish Ministry of Justice proposal would raise family-reunification maintenance thresholds by 30% and limit which income types qualify (KPMG TaxNews).
- Hong Kong eyes crypto transparency. The city launched a public consultation to sync its rules with the OECD’s CARF and updated Common Reporting Standard (CoinGeek).
- Vistra basks in ITR glory. Corporate services giant Vistra landed in the ITR World Tax 2026 rankings for five jurisdictions, bolstering its pitch to multinationals (Vistra).
Tax Stat of the Day
7.5 %, the year-on-year revenue pop in KPMG’s tax and legal division, its best showing among service lines (International Tax Review).
Looking Ahead
All eyes turn to Hong Kong’s consultation deadline in February. If the city locks in CARF rules, expect a cascade of similar moves across Asia-Pacific, and even more calls to those tax tech teams at KPMG.