Table of contents

Foreword 3

Executive summary 6

1 Macroeconomic background 8

2 Tax revenue context 13

2.1. Trends in tax revenue levels 14

2.2. Trends in tax structures 15

References 17

3 Tax policy reforms 18

3.1. Introduction 19

3.2. Personal income tax and social security contributions 22

3.3. Corporate income taxes and other corporate taxes 36

3.4. Taxes on goods and services 47

3.5. Environmentally related taxes 61

3.6. Taxes on property 68

References 72

Notes 73

FIGURES

Figure 1.1. Average annual real GDP growth 9

Figure 1.2. Inflation rate since 2015 10

Figure 1.3. Unemployment rates in OECD countries 11

Figure 1.4. General government gross debt 12

Figure 2.1. Tax-to-GDP ratios since 1990 15

Figure 2.2. Tax structures in latest available year (as a % of total tax revenues) 16

Figure 2.3. Decomposition of change in OECD tax-to-GDP ratios by tax type in latest available year 17

Figure 3.1. Average reform direction of tax reforms implemented in high-income countries over the 2015 –

2025 period 20

Figure 3.2. Revenues from personal income tax and social security contributions, 2000, 2019, 2023 24

Figure 3.3. Revenues from corporate income tax in OECD countries, 2000, 2019, 2023 37

Figure 3.4. Distribution of jurisdictions by combined statutory CIT rates 38

Figure 3.5. Revenues from taxes on goods and services, 2000, 2019, 2023 48

Figure 3.6. Distribution of effective carbon rates, 2018 and 2023 63

Figure 3.7. Property tax revenues, 2000, 2019, and 2023 69

TABLES

Table 3.1. Changes to personal income tax rates 25

Table 3.2. Changes to personal income tax bases 26

Table 3.3. Changes to tax rates on personal capital income 33

Table 3.4. Changes to personal capital income tax bases 33

Table 3.5. Changes to social security contribution rates 34

Table 3.6. Changes to social security contribution and payroll tax bases 36

Table 3.7. Changes in corporate income tax rates 39

Table 3.8. Changes to corporate tax bases 40

Table 3.9. Status of Pillar Two implementation 46

Table 3.10. VAT rate changes in 2024 – 2025 49

Table 3.11. Changes to taxes on energy use implemented, legislated or announced in 2025 64

Table 3.12. Changes to taxes related to transport implemented, legislated or announced in 2025 67

Table 3.13. Changes to other environmentally related taxes implemented, legislated or announced in 2025 68

Table 3.14. Changes to property taxes 71