On 9 July 2020 the OECD published a report on its work with developing countries in 2019, entitled Tax Cooperation for Development. The OECD provides a wide variety of assistance to developing countries to ensure that they benefit from advances in tax co-operation and transparency. The assistance provides developing countries with tax expertise; internationally comparable data; targeted guidance and tools; and direct capacity building support.

Inclusive Framework

The Inclusive Framework was set up to ensure that developing countries could participate fully in the implementation and monitoring of the OECD action plan on base erosion and profit shifting (BEPS). Support is provided through bespoke Induction Programmes to identify and implement priority measures; support through the peer review process on BEPS minimum standards; and support in relation to participation in the standard-setting processes.

Wider Support

In addition to work on BEPS implementation, the OECD works with developing countries on tax policy to bring about the Sustainable Development Goals, providing work on tax policy analysis. The OECD is also collecting a wider range of tax revenue statistics to help inform public policy decision-making.

The OECD also works to increase the tools and information available for the fight against financial crime including money laundering and fraud.

The Forum on Tax Administration (FTA) provides an opportunity for tax commissioners to work together to identify global developments in tax administration and work out initiatives to increase the efficiency of tax administration.

Global Relations Program on Tax

The OECD’s Global Relations Program on Tax holds more than 50 events each year to assist tax officials from developing countries in dealing with international tax challenges. This includes face-to-face events, e-learning or a combination of the two. The e-learning modules include issues such as transfer pricing, minimum standards, tax information exchange, hybrids, CFCs, tax crime and VAT.

Ongoing Work

Domestic resource mobilisation is the most important long-term source of public financing, especially in view of the need to strengthen health systems and other public services, increase investment and rebuild economies after the crisis. Developing countries will generally need to implement measures to increase their tax to GDP ratios. Increased international support for capacity building is therefore essential.

Many low-income countries are currently undecided as to how much the ongoing international tax reforms will provide direct benefits to them. The advantage to developing countries from tax reforms such as country by country reporting, tax treaty abuse provisions and exchange of tax information therefore need to be assessed. This assessment may lead to further proposals to specifically address the needs of developing countries.