Trade wars turn demand for global tax advisers in £50bn market
The global tax advisory growth rate for 2025 is expected to nearly double last year’s rate, driven largely by the policies of the US President Trump’s administration, including trade wars and tariffs.
According to a new report by research-led advisory firm Source Global Research, the market value for tax advisory services is forecasted to reach nearly $64bn (£48.4bn), and it is expected to grow by a further 6 per cent in 2026 to $67.4bn.
Following two years of subdued growth, the tax advisory services sector is expected to grow amid global political and economic headwinds.
The top services for growth will be transaction tax, transfer pricing, and international taxes. Meanwhile, healthcare, energy and resources, and pharma and life sciences are expected to be the fastest-growing sectors, with revenues rising between nine per cent and 10 per cent.
In terms of regions, the Middle East is expected to be the fastest-growing tax advisory market, growing at a 10 per cent forecast rate in 2025 and is projected to surpass $1bn in revenues by 2026.
The report noted that the majority of respondents (81 per cent) stated that Trump’s tariffs made tax planning impossible due to their impact. For financial services clients, it is the complexities surrounding the OECD’s Pillar Two framework that will drive work.
Tony Maroulis, principal consultant at Source Global Research, said, “While uncertainty and unpredictability often act as a brake on investment plans for companies, when it comes to tax, it can sometimes have the opposite effect.”
Tax advisory fees on the rise
An increase in tax can even be seen in the latest results of the Big Four giants, after both EY and Deloitte reported positive growth in their tax divisions.
This has resulted in tax advisory services countering a broader trend by making clients more accepting of higher prices, as the report highlighted that over half (54 per cent) expect prices to increase.
When asked about why clients expect prices to increase, two main reasons emerged: the shortage of specialist expertise and the high return on investment expected.
This all comes at a time when, within the professional services sector, companies are scrutinising prices more than before, following economic challenges and the implications of AI.
Maroulis stated, “Although price rises will be music to the ears of many tax advisors, raising fees is unlikely to be a walk in the park.”
“Companies are unlikely to straightforwardly accept higher prices for the same service as before, as they want to understand the value that they are getting,” he added.