A report covering 108 economies highlights advances in digital identity, automated tax services, pre-filled returns and artificial intelligence, while examining regional differences in technology adoption and digital governance.
The OECD published a report titled Digitalisation and Digital Transformation in Tax Administrations: Regional Trends and Insights on 12 November 2026.
The report examines the use of technology by tax administrations across 108 economies covered by the OECD’s Inventory of Tax Technology Initiatives. It groups the economies by geographical region to facilitate comparisons of digitalisation progress, highlight current developments and emerging practices, and support domestic tax reforms and future cooperation between tax administrations.
Other key aspects of the report are:
Tax administrations speed up digital change
Since the OECD Forum on Tax Administration published its Tax Administration 3.0 vision in 2020 (OECD, 2020), many tax authorities have moved faster toward digital systems. They use technology to work more efficiently, improve compliance and reduce the burden on taxpayers. Many are now building systems that connect smoothly and put users first.
What the data shows
The Inventory of Tax Technology Initiatives (ITTI), published by the OECD and partners in 2025, covers 108 tax administrations. The report uses this data to examine progress worldwide and by region. Regional analysts can use it to spot reform options and potential partners, including administrations outside their usual peer group. Senior officials get a clear view of the wider trends.
Digital identity as a foundation
Most taxpayers, especially in Asia and Europe, now log in to tax services with a digital identity. This login verifies who they are securely and allows systems to share data in real time.
Around half of tax administrations also let these digital identities open services from other government bodies. This is most common in Europe and Latin America and the Caribbean.
Integration and services built around users
More than 80% of the administrations are building application programming interfaces (APIs). This includes every administration in Africa and in Central and West Asia. Over half make their APIs public, so third-party systems can connect to tax services. Public APIs are most common in Europe.
Some administrations work with outside companies to develop software, particularly in Africa and Latin America and the Caribbean. Others build tools that fit directly into the business systems taxpayers already use. This is most visible in Central and West Asia and in Latin America and the Caribbean.
Automation keeps growing too. Early use of artificial intelligence (AI) is highest in North, South and West Europe and in East and South Asia.
Three in four administrations, including all those in Central and West Asia and Central and East Europe, measure taxpayer experience. They use the results to decide which services to improve next.
Data-driven administration
About 60% of administrations receive data directly from taxpayers’ business systems, not just pay-as-you-earn (PAYE) records. An even larger share gets data from third parties. Central and West Asia and Europe lead on this. More of this information now moves between systems automatically. This cuts manual reporting and improves data quality.
Pre-filled tax returns
Many administrations now offer fully prefilled personal income tax returns to parts of the taxpayer population. North, South and West Europe have the most mature systems. Progress is also visible in prefilled VAT and corporate income tax returns. Electronic invoicing helps make this possible. Fully prefilled business tax returns remain less common. Simpler tax rules would help administrations expand them. Latin America and the Caribbean have the highest rate of prefilled business returns.
Collect once, use many times
More than 80% of administrations share bulk information with other government agencies. Over half run common databases that several agencies use. This practice is most common in Europe and Latin America and the Caribbean. Reporting burdens fall as a result. Citizens and businesses deal with tax authorities and other public services more smoothly.
The growing importance of artificial intelligence
Nearly half of administrations use AI to strengthen compliance and improve taxpayer services. Central and West Asia and Europe lead in this area. Fraud detection and risk assessment are the most common uses. Most administrations have set limits, governance arrangements and ethical safeguards for AI use.
Skills and organisational change
Many administrations in Africa and Asia have started to identify the skills digital transformation requires. Comprehensive workforce planning is still limited. Most rely on outside expertise, partnerships and cooperation across government to build digital capabilities.
Strategic governance and delivery
About three in four administrations have a digital transformation strategy. These usually run for several years and match broader government priorities. Adoption is highest in Africa, Central and West Asia, Latin America and the Caribbean, and North, South and West Europe. More than 70% support the work through senior governance structures. Around two in three have strengthened delivery through dedicated digital leadership roles.
Looking ahead
The data shows clear progress. Future updates to the ITTI database will show how fast this change moves, which direction it takes and how evenly it spreads across tax administrations worldwide.
