NTT DATA’s role in modernizing tax administrations
In the public eye, the government sector is still perceived as an opaque, complex, and difficult-to-understand space. This reputation, shaped and reinforced by decades of bureaucracy, extends to the digital realm as well. When an online procedure with a public institution goes smoothly on the first try, users are still somewhat surprised.
The already complex relationship between citizens and public administration reaches a new high when it comes to tax-related procedures. Despite the progress made by tax authorities in recent years to change this perception, there is still a long way to go. For instance, 71% of Spanish citizens say they do not understand the language used by the Tax Agency, according to a survey by TaxDown. Here, digital transformation can play a key role in making the tax system feel less like a riddle to be solved. At NTT DATA, we’ve spent years investing in tax knowledge, supporting several tax administrations in their evolution toward more efficient, tech-driven, and accessible models.
NTT DATA’s strategic value offering for tax administrations
Digital transformation is never a straightforward process, but in the case of public administration, particularly in the fiscal domain, the complexity is even greater. Any proposed solution must not only support tax administration and revenue management but also enhance the taxpayer experience and guide public institutions through their digital transformation journey.
One of NTT DATA’s key strengths in tackling such projects is our hybrid team, which combines deep tax expertise with technological know-how, especially through our SAP TRM team, to deliver specialised solutions. Within the company, we also draw on a pool of experts in organisational restructuring, process reengineering, citizen engagement, data governance, and automation tools such as Power Platform and UiPath. We also offer services that support taxpayers, streamline administrative processes, and drive digitalisation.
This integrated approach allows us to deliver innovative, tailored solutions that meet the specific needs of each client.
In line with market trends, NTT DATA focuses on three key areas:
Information system for tax administration
How can tax authorities carry out their operations rigorously and efficiently while also meeting, or exceeding, citizens’ expectations? Technology makes this possible, and there are multiple pathways to choose from. Historically, many agencies relied on custom-built solutions, bespoke developments tailored to the specific needs of each tax authority. While these offer a high degree of personalisation, they often come with high costs and limitations in terms of alternatives and maturity.
Another option is niche packaged solutions, tools developed by specialised companies focused on specific segments of the market and designed to address particular pain points. While effective in solving targeted issues, these solutions tend to be rigid and difficult to adapt to the diverse fiscal realities of public administrations. Examples include SIT – GTT and TAO.
Lastly, generalist packaged solutions (such as SAP and Oracle) offer greater flexibility, integration capabilities, and interoperability with other systems. This makes them ideal for tax agencies seeking efficiency, scalability, and an optimised user experience. Two of the most relevant solutions in this category are SAP Tax and Revenue Management (TRM), a modular system adapted from SAP ERP that enables end-to-end tax process management, and Oracle Public Sector Revenue Management, which covers the full spectrum of tax administration processes.
Data management and analytics
Digital transformation also means learning to manage, analyse, and leverage vast amounts of data. Thanks to the boost provided by the EU’s Next Generation funds, most public administrations are now working to establish more advanced models that make meaningful use of this information. This evolution requires more than investment in technology—it demands stronger data governance and security, the promotion of ethical data use, and guarantees of data quality and interoperability.
When paired with advanced analytics tools, such as artificial intelligence and machine learning, public institutions can use this data to inform decision-making, improve internal processes, and deliver better outcomes.
Citizen engagement
While data and process transformation will have a significant internal impact on tax agencies, one change will be clearly visible to citizens: the relationship between tax administrations and the public is becoming more fluid, and work is underway to continue improving it.
Several factors are key here. First, the combination of digital, phone, and in-person channels increases accessibility by offering options to suit different user needs. Second, services that anticipate procedural steps and simplify the overall experience help promote user proactivity. Third, new identification tools such as digital ID and video identification enhance convenience without compromising security. And finally, public administrations now have a more holistic view of the citizen. When combined with smart tools, this enables greater personalisation of services and procedures.
The NTT DATA initiative: TaxLab
To meet the evolving needs of tax administrations in this time of technological change and opportunity, NTT DATA launched TaxLab, an innovation lab designed to train our consultants in the new skills required for modern tax systems.
In each edition, participants learn to evaluate existing tax processes and identify opportunities for AI, UX, and automation integration. They also gain hands-on experience with SAPUI5, UX best practices, and low-code tools. The programme expands their understanding of how to integrate AI into tax workflows and enables them to design and implement full end-to-end flows using real-world tax scenarios powered by SAP S/4HANA, UX, and UI5 capabilities.
At NTT DATA, we are ready to continue supporting public administrations in building a future where public services no longer frustrate citizens, where tax management becomes more efficient, more transparent, and truly citizen-centric.
Albert Puncernau Jeremias
Director – Head of Revenue Mngt ES en NTT DATA
Cristina Herrada Fresno
Project Manager, Public Finance & Talent en NTT DATA
Luis Aparicio Juan
Expert Enterprise Solutions Analyst ES en NTT DATA
