The OECD unveiled a report on May 19 detailing its efforts over the past year to help developing countries create better tax policy measures, maximize revenue collection, and navigate the challenges of the COVID-19 pandemic.
Tax Co-operation for Development: Progress report in the COVID-19 era is a look back at the challenging year of 2020 to show how developing countries interacted with the OECD on a variety of tax policy and administration issues, the OECD said.
The report focuses on the targeted guidance; the joint effort of the OECD and various countries to develop and implement international tax standards; and the interaction between international organizations, regional tax organizations, and other stakeholders.
The OECD was forced to provide much of its support virtually, following the suspension of travel in March 2020; nevertheless, it was still able to work with more than 30,000 tax officials from the developing world, compared to 5,000 in a typical year, the OECD said.
The report acknowledged that the COVID-19 pandemic had a” huge impact” on both people and economies and that developing countries were hit the hardest. Developing countries tend to rely more on VAT and corporate income tax, both of which were negatively impacted in 2020, according to the report.
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