OECD Reports Gains and Ongoing Challenges in Developing Country Tax Revenue

Note: Single-source report; awaiting corroboration.

Developing countries have made notable progress in mobilising domestic resources, with over two-thirds raising their tax-to-GDP ratios between 2010 and 2022, including in Africa, Asia and the Pacific, and Latin America and the Caribbean. These increases occurred despite disruptions from the COVID-19 pandemic. However, tax-to-GDP ratios remain below the 15% threshold in many developing economies, and the gap between these countries and OECD averages has generally widened.

Addressing tax challenges in developing countries requires comprehensive policy efforts beyond corporate taxation, including value added tax, tax transparency, financing for health and social protection, and addressing informality. The OECD supports international dialogue and cooperation to build fairer tax systems globally.

The OECD’s Tax Inspectors Without Borders (TIWB), a joint initiative with UNDP, has seen rising demand since 2015. By the end of 2023, TIWB programmes have helped developing country tax administrations collect an additional USD 2.30 billion in tax revenues, and assessed USD 6.05 billion across regions including Africa, Asia and the Pacific, Eastern Europe, and Latin America and the Caribbean. These efforts have involved organisations such as the African Tax Administration Forum (ATAF) and the World Bank Group.