This report provides a summary and comparison of tax reforms across countries. It documents the evolution of tax policy changes over time and highlights recent trends in country tax policy.

The report covers the tax policy reforms introduced or announced in 2023 in 90 member jurisdictions of the OECD/G20 Inclusive Framework on base erosion and profit shifting, including all OECD countries. It provides an overview of the macroeconomic environment and tax revenue context in which these tax reforms were made, highlighting how governments used tax policy to respond to elevated inflation levels, as well as to address long-run structural challenges.

Findings

• The trend towards tax decreasing reforms observed during the COVID-19 pandemic and the subsequent period of high inflation is showing signs of deceleration or reversal.
• A notable shift occurred in the taxation of businesses, where the trend in corporate income tax rate cuts seems to have halted, with far more jurisdictions implementing rate increases than decreases in 2023, for the first time since the first edition of the Tax Policy Reforms report in 2015. 
• Although cuts to personal income taxes remain a tool for supporting economic recovery and household incomes, a growing share of jurisdictions covered in this report are implementing social security contribution increases. 
• After various jurisdictions introduced significant Value Added Tax (VAT) relief measures on energy products in response to a sharp rise in energy costs and subsequent inflation, the pace of such VAT cuts and base narrowing measures is slowing, with some scaling back VAT relief measures on those products. 
• The ongoing cost-of-living pressures continued to prompt jurisdictions to reduce taxes on energy use, a trend that initially emerged in 2022.