OECD Tax Policy Studies Fundamental Reform of Corporate Income Tax

by OECD Organisation for Economic Co-operation and Development

Policy makers in OECD countries are concerned about whether they can maintain their current levels of corporate income tax revenues and how they can create an attractive investment climate for domestic and foreign investors. This report presents the recent trends in the taxation of corporate income in OECD countries and discusses the main drivers of corporate income tax reform and evaluates the gains of fundamental corporate tax reform. The corporate tax-induced distortions are discussed from a domestic and international tax point of view. This study also considers tax revenue and tax complexity issues. The book also explains a series of alternative systems that might be implemented.

172 pages, Paperback

First published November 27, 2007

About the author

The Organisation for Economic Co-operation and Development (OECD) is an intergovernmental economic organisation with 35 member countries, founded in 1961 to stimulate economic progress and world trade. It is a forum of countries describing themselves as committed to democracy and the market economy, providing a platform to compare policy experiences, seeking answers to common problems, identify good practices and coordinate domestic and international policies of its members.

In 1948, the OECD originated as the Organisation for European Economic Co-operation (OEEC), led by Robert Marjolin of France, to help administer the Marshall Plan (which was rejected by the Soviet Union and its satellite states). This would be achieved by allocating American financial aid and implementing economic programs for the reconstruction of Europe after World War II. (Similar reconstruction aid was sent to the war-torn Republic of China and post-war Korea, but not under the name "Marshall Plan".)

In 1961, the OEEC was reformed into the Organisation for Economic Co-operation and Development by the Convention on the Organisation for Economic Co-operation and Development and membership was extended to non-European states. Most OECD members are high-income economies with a very high Human Development Index (HDI) and are regarded as developed countries.

The OECD's headquarters are at the Château de la Muette in Paris, France. The OECD is funded by contributions from member states at varying rates.