Corporate Tax Receipts Slide Across the OECD,And Everyone’s Asking Why
The latest OECD snapshot of 2023 revenues shows corporate income tax (CIT) losing some weight on government balance sheets. At a time when public coffers are under pressure, the downturn is sparking new debates over loopholes, incentives, and the next wave of global tax reforms.
The Big Picture
CIT’s share of total tax revenue fell in a majority of member countries last year, a trend the OECD calls “notable given post-pandemic profit rebounds,” International Tax Review reports.
The Details
• France booked just 6% of its tax take from companies, while Ireland,home to scores of tech giants,pulled in a hefty 21.5%.
• The report points to aggressive competition for investment and the growing patchwork of incentives as key drivers.
• Officials also flagged the lingering impact of pandemic-era carry-back provisions that allowed firms to offset 2023 profits with prior-year losses.
Why It Matters / What They’re Saying
The reaction was swift: Tax professionals warn that slimmer CIT inflows could hamstring countries just as they prepare to implement the OECD’s Pillar Two minimum tax. Governments may need to “tighten anti-avoidance screws or broaden bases,” one analyst told International Tax Review.
Around the Tax World
• Malta tunes up its regime. A deep dive from Forbes Tax Notes charts how the island nation is phasing out decades-old imputation credits to align with EU anti-avoidance rules.
• New voice at USCIB. Veteran practitioner Michael Lebovitz has been tapped as Senior VP for international tax policy at the U.S. Council for International Business, Bloomberg Tax reports.
• UK customs-union chatter. A surprise tied vote nudged a motion to reopen customs-union talks with the EU to second reading, according to Sky News.
• Australia sharpens its transfer-pricing claws. The ATO’s latest guidance signals tougher audits and urges multinationals to prep for litigation, warns Bloomberg Law.
By the Numbers
Prime Number: 21.5% , the slice of total tax revenue Ireland derived from corporate income tax in 2023, more than triple France’s share (International Tax Review).
Looking Ahead
All eyes now turn to the UN committee drafting the first-ever Framework Convention on International Tax Cooperation, a process outlined in a recent lecture at the University of Melbourne (Melbourne Law School). Negotiators aim to table a full text by early 2027, so grab the popcorn; the treaty talks are just getting started. For further insights, check out our Introduction To Nigerian Tax Laws.