RSM Reports 17% Surge in Tax Revenues Fueled by Pillar Two Advice and Global Growth

Global accountancy firm RSM has reported a significant surge in tax revenues, marking a 17% increase to $2.6 billion, fueled by a notable uptick in pillar two advice, according to its latest financial results. The firm's worldwide revenues for the 12 months ending December 2023 reached $9.4 billion, reflecting a robust year-on-year growth of 16%. In addition to tax revenues, RSM experienced notable increases in accounting and audit services, with a 15% rise to $3.6 billion, and consulting turnover for 2023, which totaled $3.1 billion, representing a 16% increase from the previous year.

RSM reported impressive growth across all its regions, with a particularly noteworthy 36% increase in revenue growth in Europe compared to 2022. The firm attributed this growth to sustained development across its member firms and the addition of RSM Ebner Stolz in Germany. RSM Ebner Stolz's focus on corporate tax advisory for dynamic and internationally active middle-market companies contributed significantly to RSM's strong performance in Europe.

The implementation of the OECD's global minimum tax also played a substantial role in driving RSM's growth in Europe. The firm witnessed a 48% spike in demand for tax services, a trend it believes will persist as businesses prepare for the implementation of pillar two of the global minimum tax, introducing changes to the overall tax revenues certain global businesses will need to pay.

RSM's largest revenue-generating region, North America, saw a 13% rise in fee income for the 2023 financial year, powered by substantial growth in both tax and consulting services. The firm also reported noteworthy growth in Africa (29%), driven in part by a strategic merger in South Africa, where RSM South Africa combined with domestic accounting services firm Ngubane Johannesburg.

Additionally, RSM reported growth in the MENA region (30%), Latin America (18%), and Asia Pacific (8%). Jean Stephens, RSM International CEO, emphasized that the financial results further solidify the firm's status as the leading global provider of professional services to the middle market. The results align with those of the 'big four,' with Deloitte, EY, and PwC reporting double-digit growth, while KPMG reported an 8% local currency growth from the 2022 financial year.

By fLEXI tEAM