Making AI Work in Tax Compliance: BDO Global Insights, Through a Jordan Lens
Making AI Work in Tax Compliance: BDO Global Insights, Through a Jordan Lens
If you work in finance or tax today, you already feel it: tax compliance is no longer a “year-end task.” It has become a strategic pressure point—one that touches cash flow, reputation, governance, and the confidence of leadership teams.
That is exactly the tone of the BDO Global Tax Outlook 2025. The report doesn’t treat tax as paperwork. It treats it as what it has become: a living system operating inside a world of faster regulation, more digital mandates, and more assertive enforcement. And it asks the real question: how do we keep compliance strong when complexity keeps rising—but resources don’t?
For organizations in Jordan, the answer is not “work harder.” It’s work smarter; with cleaner data, better operating models, focused use of technology (including AI), and a tax function that is genuinely connected to business decisions.
Why tax compliance feels heavier every year
BDO’s global research shows that 66% of businesses expect tax compliance costs to rise over the next 12 months. Smaller businesses feel this pain even more sharply 80% of leaders in that segment describe high costs as a major concern.
But what’s driving the cost isn’t mystery. It is the compound effect of:
Enforcement is changing the real workload: time
One of the most important insights in the report is not even a “tax” insight; it’s an operational one.
81% of leaders say their time spent responding to tax authority queries has increased over the last two years. A typical tax compliance team now spends around 25% of its time responding to those queries.
That’s a quarter of capacity. Not building improvements. Not strengthening controls. Not supporting strategy. Just responding.
This is why modern compliance excellence is not only about filing correctly; it’s about being ready. Ready with the right documentation, data trails, reconciliations, and internal alignment so the organization can respond quickly and consistently.
Outsourcing isn’t a trend anymore. It’s an operating model.
BDO’s research shows 71% of organizations now outsource some portion of tax compliance, and most are not fully outsourcing—they’re choosing a selective, hybrid model (60% outsource some functions while keeping others in-house).
And if you ask why, the reasons are practical:
AI in tax: real value, but only with discipline
AI is already reshaping parts of tax compliance, but not in the dramatic “replacement” way people imagine. Its current value is more mature and more useful: it helps tax teams handle volume, improve consistency, and reduce friction.
BDO’s research shows AI is already supporting tax teams in areas such as:
In other words: AI can accelerate good systems. It can also accelerate weak ones.
What this means for organizations in Jordan
In Jordan, we’re living the same global direction—digital compliance expectations, rising documentation needs, and increasing demand for speed and precision.
So the path forward is clear:
How BDO Jordan can help
At BDO Jordan, our tax work is built around one principle: compliance should protect the business, not exhaust it. We help organizations build tax functions that are accurate, responsive, well-governed, and aligned with business priorities.
Our Tax Services include:
Because the goal isn’t “modern tax.”
The goal is predictable compliance, fewer surprises, faster responses, stronger confidence, and better decisions.
Source: This article is adapted from insights in BDO Global Tax Outlook 2025: “Reimagining tax compliance: A strategic toolkit for change” (BDO Global).
That is exactly the tone of the BDO Global Tax Outlook 2025. The report doesn’t treat tax as paperwork. It treats it as what it has become: a living system operating inside a world of faster regulation, more digital mandates, and more assertive enforcement. And it asks the real question: how do we keep compliance strong when complexity keeps rising—but resources don’t?
For organizations in Jordan, the answer is not “work harder.” It’s work smarter; with cleaner data, better operating models, focused use of technology (including AI), and a tax function that is genuinely connected to business decisions.
Why tax compliance feels heavier every year
BDO’s global research shows that 66% of businesses expect tax compliance costs to rise over the next 12 months. Smaller businesses feel this pain even more sharply 80% of leaders in that segment describe high costs as a major concern.
But what’s driving the cost isn’t mystery. It is the compound effect of:
- regulatory change that doesn’t slow down
- more real-time reporting expectations
- increased documentation requirements (including transfer pricing)
- and more frequent, more detailed interactions with tax authorities
Enforcement is changing the real workload: time
One of the most important insights in the report is not even a “tax” insight; it’s an operational one.
81% of leaders say their time spent responding to tax authority queries has increased over the last two years. A typical tax compliance team now spends around 25% of its time responding to those queries.
That’s a quarter of capacity. Not building improvements. Not strengthening controls. Not supporting strategy. Just responding.
This is why modern compliance excellence is not only about filing correctly; it’s about being ready. Ready with the right documentation, data trails, reconciliations, and internal alignment so the organization can respond quickly and consistently.
Outsourcing isn’t a trend anymore. It’s an operating model.
BDO’s research shows 71% of organizations now outsource some portion of tax compliance, and most are not fully outsourcing—they’re choosing a selective, hybrid model (60% outsource some functions while keeping others in-house).
And if you ask why, the reasons are practical:
- to create capacity inside the tax team
- to access technical depth when needed
- to handle peak cycles and multi-country demands
- to improve quality and reduce avoidable errors
- to free specialists from repetitive tasks so they can focus on the work that requires judgment
AI in tax: real value, but only with discipline
AI is already reshaping parts of tax compliance, but not in the dramatic “replacement” way people imagine. Its current value is more mature and more useful: it helps tax teams handle volume, improve consistency, and reduce friction.
BDO’s research shows AI is already supporting tax teams in areas such as:
- knowledge management (70%)
- data extraction (66%)
- flagging inconsistent records (57%)
- scenario planning (52%)
- classification (46%)
- non-compliance alerts (39%)
- pre-populating returns (29%)
- better accuracy (70%)
- time saved (66%)
- making compliance more strategic (57%)
- lower costs (52%)
- faster response to authorities (46%)
In other words: AI can accelerate good systems. It can also accelerate weak ones.
What this means for organizations in Jordan
In Jordan, we’re living the same global direction—digital compliance expectations, rising documentation needs, and increasing demand for speed and precision.
So the path forward is clear:
- treat tax as part of strategy, not as an afterthought
- build clean and reliable data flows
- structure responsibilities end-to-end
- use automation where it genuinely reduces risk and cycle time
- and ensure experienced professionals remain responsible for the technical position, the filing, and the story behind the numbers
How BDO Jordan can help
At BDO Jordan, our tax work is built around one principle: compliance should protect the business, not exhaust it. We help organizations build tax functions that are accurate, responsive, well-governed, and aligned with business priorities.
Our Tax Services include:
- Corporate Income Tax: compliance support, planning, risk review, and practical guidance aligned with Jordanian requirements
- General Sales Tax (GST): advisory and compliance services that reduce exposure and strengthen indirect tax accuracy
- Employment Income Tax: support on payroll tax matters and employer compliance obligations
- Transfer Pricing: documentation, technical analysis, and audit support built on defensible positions and clear narratives
- E-Invoicing: readiness support and practical alignment of systems and processes with digital compliance requirements
- International Tax: inbound/outbound structuring support and cross-border compliance guidance
- Treaty and relief advisory: guidance on treaty relief (where applicable), share transfers, and dividend distributions
- M&A tax support: due diligence, structuring, execution support, and post-deal integration to identify liabilities early and protect value
Because the goal isn’t “modern tax.”
The goal is predictable compliance, fewer surprises, faster responses, stronger confidence, and better decisions.
Source: This article is adapted from insights in BDO Global Tax Outlook 2025: “Reimagining tax compliance: A strategic toolkit for change” (BDO Global).