This is the first edition of Tax Policy Reforms in the OECD. This annual series of reports aims to track tax policy developments over time across OECD countries. This year’s edition provides an overview of tax reforms in 2015. It identifies the most significant tax policy reforms that were implemented, legislated or announced in 2015 as well as common tax policy trends across groups of countries. Monitoring tax policy reforms across the OECD and understanding the context in which they were undertaken is crucial to inform tax policy discussions as well as to support member and non-member countries in their assessment and design of future tax reforms.

In a context of low growth, subdued investment, high unemployment and inequality, tax policy plays an important role in supporting both economic growth and greater inclusiveness. Tax policies have direct implications on economic growth as well as on how the benefits of growth are shared across the population. They also play a significant indirect role in supporting inclusive growth through their capacity to finance growth- and equity-friendly public expenditures such as investment in education and infrastructure.

This chapter provides a brief introduction to the first edition of Tax Policy Reforms in the OECD. It explains the purpose of this new annual series of reports as well as the methodology and process upon which they are based.

This chapter first provides an overview of recent macroeconomic developments in OECD countries, including trends in growth, productivity, investment, employment, public finances and inequality. It then describes tax revenue trends, examining both trends in total tax revenues and changes in the composition of tax revenues – i.e. tax mixes – in OECD countries. This overview of macroeconomic and tax revenue trends sets the stage for the subsequent discussion on tax policy reforms as tax policy developments are closely connected with economic trends. Indeed, tax revenues are affected by changes in macroeconomic conditions and economic developments themselves are key drivers of tax reforms.

This chapter provides an overview of the tax reforms that were introduced in 2015 in OECD countries. It identifies the most significant reforms that were implemented, enacted or announced in calendar year 2015 as well as common tax policy trends across groups of countries. It starts with a general overview of tax reforms across OECD countries and their estimated revenue effects. It then looks at each category of tax separately including personal income taxes and social security contributions, corporate income taxes and other corporate taxes, VAT/GST and excise duties, environmentally related taxes and property taxes. This chapter aims to inform tax policy discussions as well as to support member and non-member countries in their assessment and design of future tax reforms.