OECD Report Finds Most Members Lower Corporate Taxes to Boost Growth in 2025

The OECD’s Tax Policy Reforms 2026 study documents tax changes introduced or announced in 2025 across its member states. While earlier crises triggered uniform fiscal shocks, the latest report notes a shift toward diversified objectives reflecting domestic conditions, fiscal space, and political priorities. The majority of countries pursued modest cuts to corporate tax rates and introduced incentives aimed at investment, especially in research, development, and strategic sectors.

At the same time, a number of jurisdictions implemented limited, targeted tax increases—such as sector-specific surcharges on firms, tobacco duties, and higher rates on bank profits—to raise revenue without broad-based hikes. The analysis also highlights that social security contributions rose in many places, effectively increasing the tax burden on labour, and that public debt remains above pre-pandemic levels, compounded by higher interest rates. Overall, the report portrays 2025 tax policy as balancing growth support with mounting budget pressures.