In recent years, a good part of the countries with developed economies opted to gradually reduce the formula to attract investment and promote the competitiveness of companies in an increasingly global environment. However, that trend, which gained strength during the economic crisis caused by pandemic ,. At least this is believed by the Organization for Economic Cooperation and Development (OECD), which corroborates that the year 2024 was the second consecutive year in which the countries that rose this tax exceeded those who lowered it. The objective of this turn, according to the agency in the last Annual Fiscal Reform Reportpublished this Thursday, it was clear: to contribute to reinforce the collection.
In 2024, the OECD said, “there were more countries that increased the rates of companies tax that reduced them, and the increases tended to be greater than decreases.” Several jurisdictions also introduced additional taxes on the income of companies to, in order to swell income for the general budget due to the increase in public spending. These movements, explains the Club of the rich countries, “suggest that the downward trend of the Corporation Tax fees has stopped or shows indications of reversing.”
The economic context that the countries analyzed are going through – a total of 86 jurisdictions, among which is Spain – helps to understand this turn. The average of the territories that shape the organism stood at 2024 around 112% of the gross domestic product (GDP), eight points above the situation prior to the Pandemia of the COVID-19. To this are added new expenditure pressures that threaten to unbalance the accounts and incur greater deficit: adaptation of the economy to climate change, population aging and, in some countries, a ―The report focuses on 2024, so it does not collect the latest increases approved for – which will go to more.
Therefore, levers have begun to activate the collection. In the case of the Corporation Tax, the change of course is clear. Although many governments maintain investment tax incentives, in particular in research, development and clean technologies, the OECD emphasizes that the tendency to reduce types in corporate taxes has stopped and begins to be invested.
According to the report, the responses of the countries consulted recognize that the most common objective of the recent reforms in companies of companies has been the strengthening of income. However, the OECD adds, many jurisdictions sought at the same time to promote economic recovery, boost private sector investment and. “This reflects the dilemma facing political leaders by trying to balance the need for fiscal consolidation with the imperative to stimulate long -term growth.”
The OECD also cites the additional levies directed. Jurisdictions such as Spain, Belgium, Hungary, Ireland, the Netherlands or Slovakia introduced them or reinforced in 2024.
In this new scenario, however, there are nuances. Despite the upward trend in the types, the OECD also detects measures to reduce the tax base, that is, of the final amount of the income on which the invoice of the companies is calculated. Many countries have chosen to expand deductions or to favor certain investments, especially in research and development, in green and defense technologies. With nominal types already at historically low levels, the strategy has been to offer more selective tax advantages instead of general gravamen cuts.
The change of course detected at a fiscal level is not limited only to societies. Taxation on natural persons also harden, especially in the upper part of the distribution, through surcharges in the maximum types and increases in capital income. The OECD explains that the purpose of these reforms was double :. Therefore, together with these increases, support measures to certain groups were maintained, although more focused than in previous years. If during the energy price crisis the relief were generalized, in 2024 they concentrated on young people, families and older people.
Social quotes followed the same logic. With health and pension systems under pressure, most countries chose to raise the types. At the same time, the quotation bases were modified: in some cases the maximum ceilings were extended or the coverage to new income was extended; In others, reductions for certain groups were applied in order to encourage their participation in the labor market.
The value added tax also reflects the transition. Many governments maintained for essential goods – such as food, energy, housing, health or child care – alleging reasons of equity and fiscal justice. However, by decreasing inflationary pressures, the withdrawal of many of the temporary sales approved during the pandemic and the energy crisis began, with the declared objective of strengthening the collection.
Next to VAT, special taxes also gained prominence. Many countries increased tobacco levies, alcohol and sugary drinks, a decision to raise more and more healthy lifestyle habits. In the environmental field, the temporary sales of those that had been applied in 2022 and 2023 were ended. From 2024, several countries resumed the path of increases in fossil fuels.
