Staying compliant: How to navigate emerging market tax shifts in 2025 and beyond

If you’re a UK-based business expanding into emerging markets, understanding local tax reforms has become more important than ever. As global economic policies shift and governments seek to modernise their tax systems, staying informed is essential – not only for compliance but also for long-term growth planning. To help you anticipate what’s ahead, here’s how to stay prepared for tax changes in emerging markets.

Prepare for global minimum tax initiatives

The OECD’s Pillar Two initiative is setting the stage for a worldwide minimum corporate tax rate of 15%, targeting large multinational enterprises. The new framework is designed to prevent tax base erosion and ensure companies pay a fair share no matter where they operate. A number of emerging markets are preparing to implement the rules. For example, Thailand will enforce the global minimum from January 2025. If you’re a UK investor or company operating abroad, it’s a good idea to revisit tax structures and ensure that profits aren’t parked in low-tax jurisdictions that may soon lose their edge.

Adapt to digital asset tax reforms

Cryptocurrency regulation is evolving quickly in emerging markets. For example, Indonesia now applies a 0.21% tax on domestic crypto transactions, with a much higher 1% fee on foreign platforms. These policies not only raise revenue but encourage activity on the country’s local exchanges. For UK-based investors involved in digital assets abroad, it’s essential to factor in how changing crypto tax rates can affect margins and reporting obligations.

Understand how tax policy affects market volatility

Tax policy changes can affect markets overnight. In South Korea, recent proposals to increase corporate and dividend taxes led to a sharp 3.9% dip in the KOSPI index. It’s a reminder that tax announcements (particularly in export-driven economies) can have immediate financial consequences. If your business is active in Asia, Africa, or Latin America, make sure to build flexibility into your strategies and consider how new tax proposals might impact valuation and local operations.

Leverage tax technology for strategic planning

Advanced tax technologies can make all the difference if your business operates across jurisdictions. AI and real-time data platforms can help monitor important regulatory changes, flag risk areas, and improve reporting accuracy. Engaging with tax specialists is a smart move – they can give you expert guidance on selecting tools that align with your specific business model and help you interpret new regulations before they become a problem.

Don’t get caught out by global tax reforms

It’s crucial for UK businesses to stay proactive with international tax strategy. Emerging markets are reshaping their tax systems – often without much notice. Staying informed, flexible, and tech-enabled is the key to turning change into possible opportunity.