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Taxation in a
digital age
We lead the journey to data-driven taxation
Taxation challenges
The world of taxation is rapidly changing. More and more work becomes remote; income streams are complexifying; the number of tax data volumes and sources in the digital economy is exploding; business activity is increasingly multinational; legislative change is rapid; Coupled with the growing demand for transparency, fairness, and speed in tax administration, modern tax systems are under significant pressure.
Legacy systems hinder innovation
Many tax authorities still rely on outdated systems that are costly to maintain and limit flexibility. These legacy systems struggle to meet taxpayers’ rising expectations for online services, creating a gap between what the online experience taxpayers expect and what the outdated systems can deliver. Modernising these systems is essential for creating a unified, interoperable tax platform that supports real-time data sharing across services and efficient tax administration. For this reason, many tax administrations are looking into transitioning to agile, sustainable system architectures that can better meet taxpayer needs and preferences for digital services
Modern income realities disrupt traditional tax systems
Taxpayers today no longer rely solely on a fixed monthly salary. Many travel internationally, work remotely, or have flexible salary terms. They may be self-employed, earn income from online platforms like Uber and Airbnb, or run small businesses such as coffee shops. Additionally, many are actively investing in stocks and cryptocurrencies. This diversity in income sources makes it difficult for traditional tax systems to keep up.
Companies increasingly act internationally
Companies today face complex ownership structures, cross-border value chains, and multi-location operations. Economic crime is increasingly transnational, with tax evasion representing a form of cross-border financial misconduct that is more complex to unravel. Global business’s diverse and evolving nature makes it essential for tax systems to become more agile and integrated, ensuring accurate and timely tax administration across jurisdictions. Robust international cooperation and data sharing between tax authorities is key to combating the intricate webs of ownership and illicit financial flows that enable tax evasion schemes
Tax data sources and volumes are exploding
Today, tax reporting is still often a periodic activity. To alleviate this fact, integration with external sources is essential for embedding data capture in everyday taxpayer activities. Creating a digital identity is central, providing accurate, trusted income data from all sources, so taxpayers only need to verify pre-filled information.
Legislative change is rapid
Tax authorities face difficulties keeping up with frequent changes in legislation, which can result in outdated tax practices and non-compliance. With the completion of the One Stop Shop, the EU introduced CESOP in 2024, the OECD’s GloBE Rules were introduced in 2021, and new initiatives like BEFIT and VIDA are on the horizon. Additionally, local legislation is evolving, challenging the flexibility of current systems with new green taxes and taxes on personal platform income, such as from Airbnb or Uber.
Uncollected tax debt is a burden
European tax authorities are burdened by uncollected tax debt. It leads to lost revenue, increased administrative costs, and inefficiencies in public spending. The European Commission and individual countries have been working to improve tax collection processes and reduce tax evasion to mitigate this. Still, according to OECD, the total amount of outstanding arrears at the 2023 fiscal year-end was EUR 2.5 trillion, with EUR 710 billion considered collectable.
Our solution: SOLON TAX
To meet the challenges described above, tax authorities need an integrated approach where tax collection processes are embedded seamlessly into the digital infrastructures used by businesses and citizens. The result will be a truly data-driven system that is event-based and automated, with real-time data validation, assured data, and interoperable ecosystems.
SOLON TAX is our built-for-purpose solution that makes that happen. It is tailor-made to tax authorities, built on an open modern tech stack and architecture, and equipped with pre-configured tax-process components and adaptors to support a phased implementation of tax types, self-service, filing, collection, and payment processes, etc.
Built for Purpose Functionality
SOLON TAX is the result of over 25 years of delivering complex revenue management projects. SOLON TAX embraces the evolving tax legislation, addressing the shortcomings of existing products used by European tax agencies, particularly in effective debt collection
Designed and preconfigured for quick deployment
SOLON TAX is ready for accelerated deployment, fully compliant with both national and EU legislation. It is based on pre-configured, highly customisable, and adaptive processes and micro-services to automate the assessment and collection of even the most complex income streams
Composable Architecture
A modular, microservices-based design and out-of-the-box accelerators enable the stepwise introduction of SOLON TAX into the existing IT landscape, removing the need for a high-risk, big-bang approach to legacy system modernisation.
Seamless Interoperability
SOLON TAX features an open API architecture with an extensive range of pre-built APIs, enabling it to support increasingly international data exchange and integrate with any existing IT system infrastructure, UIs, registries, and EU data—whether legacy, new, or a combination.
Simple one-priced licensed product
SOLON TAX is a single-priced licensed product suited for future tax expansion and needs, including unlimited installations and users, with a fixed annual software assurance and support fee. There are no hidden extra costs or usage boundaries.
Leading event-based open technology stack
SOLON TAX is platform-independent and cloud-ready, enabling it to scale and deploy at will. It is prepared to handle vastly increasing tax data volumes and sources of the future, being built entirely on well-known leading open technologies to reduce dependencies on Big Tech and vendor lock-in.
Low-risk implementation
Digital transformation can be costly if not done right. We propose a low-risk phased approach with digital initiatives taking an organic outset in existing systems. With our composable solution approach and architecture, we offer proven tax domain solution components, implementation methods, data migration tools, automated test portals, etc. As the largest single business area in Netcompany with +1.000 FTEs, this approach builds on more than +25 years of experience from implementation work at more than 50 tax authorities.