New Trends And Challenges In Tax Due Diligence On The M&A Market

• Published date: 28 January 2026
• Subject Matter: Corporate/Commercial Law, Tax, Technology, M&A/Private Equity, Tax Authorities, Fin Tech
• Law Firm: Horizon Solutions Kft.
• Author: Mr Laszlo Soos

Tax due diligence remains a critical element in M&A (mergers and acquisitions) transactions, serving as the foundation for risk identification and informed decision-making. In recent years, several new developments and challenges have emerged in this field, requiring new approaches and expertise from both advisors and transaction participants.

1. The Rise of Artificial Intelligence (AI)

AI-based tools are playing an increasingly significant role in tax due diligence processes. These technologies can rapidly and automatically process large volumes of contracts, invoices, and other documents, identify risks, and uncover hidden connections. The use of AI accelerates due diligence, reduces the likelihood of errors, and enables more targeted, in-depth investigations. This trend is particularly pronounced in the technology, data-driven, and financial sectors.

2. Digitalization and Virtual Data Rooms

Digitalization continues to be a key theme: parties are increasingly sharing necessary documents in digital, traceable virtual data rooms. This not only speeds up the process but also enhances transparency from a compliance and audit perspective. Alongside digitalization, cybersecurity risk assessment has become an indispensable part of almost every due diligence exercise.

3. Regulatory Changes and the 2026 Tax Package

The 2026 tax...