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Tax

How to create a system for fair and transparent taxation in the digital age

Ravi Kumar's picture



Enhancing the taxation system in a fair, transparent, and efficient way in the new digital world is essential for countries looking to invest in their human capital, said Karishma Vaswani, Correspondent for BBC Asia Business and moderator of the dynamic event ‘Fair and Transparent Taxation in the Digital Age’ in Bali, Indonesia. Leaders from government, private sector, civil society, and academia gathered to explore the implications of technology on countries’ efforts to mobilize domestic resources to fund the Sustainable Development Goals.

Using satellite imagery to revolutionize the creation of tax maps

Daniel Ayalew Ali's picture

Municipalities need recurrent property taxes to finance service delivery

The ability for cities to raise revenues in a non-distortionary way for effective urban service delivery and infrastructure is essential to realizing the potential of urbanization. As most benefits from these investments will be capitalized in surging land values, recurrent taxes on land and other real property can be an incentive-compatible financing method. In developing countries, taxes on land and property are still far below those of developed countries, even in relative terms. Instead, cities often rely heavily on land transaction taxes, but these impose frictions on land market operations, push transactions into informality, and create incentives for fraudulent under-declaration of sales values.

Raising the bar on responsible tax for a sustainable future

Rajiv Joshi's picture



Editor’s note: The findings, interpretations and conclusions expressed herein are those of the authors and do not necessarily reflect the view of the World Bank Group, its Board of Directors or the governments they represent.


For business, the conversation around tax and sustainable development can be tough. Yet if we are to meet the Sustainable Development Goals (SDGs), reach our ambition to end poverty, reverse inequalities and curb climate change by 2030, serious action on taxation will be crucial. 

How to help more citizens participate in the global tax agenda

Andrew Wainer's picture
Photo: Mohammad Al-Arief/The World Bank.

Editor’s note: The findings, interpretations and conclusions expressed herein are those of the authors and do not necessarily reflect the view of the World Bank Group, its Board of Directors or the governments they represent.

Even as domestic tax reform is in the political limelight, there is growing attention to taxation in the developing world and the role of citizens in shaping tax policy.

Making taxes work for the SDGs

Jan Walliser's picture
Also available in: Français
Graphic: World Bank Group

Taxation plays a fundamental role in effectively raising and allocating domestic resources for governments to deliver essential public services and achieve broader development goals.

Game-changers and whistle-blowers: taxing wealth

Jim Brumby's picture
Also available in: Français 

High and rising income inequality is a serious concern in many countries, as highlighted in the IMF’s recent Fiscal Monitor. Wealth, however, is distributed even more unequally than income, as in the picture below.

Better understanding the costs of tax treaties: Some initial evidence from Ukraine

Oleksii Balabushko's picture
Also available in: Español | Français
Kiev, Ukraine. Creative commons copyright: Mariusz Kluzniak


As the world is increasingly interconnected, international taxation – traditionally more of a niche issue for tax lawyers – is receiving more and more attention in wider discussions on economic development: Double tax treaties, or agreements that two countries sign with one another to prevent multinational corporations or individuals from being taxed twice, have become more common, with more than 3,000 in effect today. And while they may contribute to investment, some have also become an instrument for aggressive tax planning.

Peer Pressure: Tax competition and developing economies

Michael Keen's picture
A race to the bottom. Graphic by Nicholas Nam/World Bank

Economists tend to agree on the importance of competition for a sound market economy. So what’s the problem when it comes to governments competing to attract investors through the tax treatment they provide? The trouble is that by competing with one another and eroding each other’s revenues, countries end up having to rely on other—typically more distortive—sources of financing or reduce much-needed public spending, or both.

All this has serious implications for developing countries because they are especially reliant on the corporate income tax for revenues. The risk that tax competition will pressure them into tax policies that endanger this key revenue source is therefore particularly worrisome.

Higher revenue, easier filing for taxpayers in Armenia

Julia Oliver's picture


Photo credit: Dmitry Karyshev

Armenia was faced with a slowing economy, sinking remittances, and inefficient tax administration. At the same time, ordinary taxpayers had to navigate arduous processes when paying taxes. The Armenian government was eager to reform its tax administration. Below is a transcript of what we learned when we spoke to World Bank experts working with Armenian tax officials to make things better.
 
Julia: I’m Julia Oliver.
 
Maximilian: I’m Maximilian Mareis.
 
Julia: And we have been talking with tax experts around the World Bank to find out about what they do.
 
Maximilian: So, let’s start with this project in Armenia. Why did we get involved?

Julia: Well, the global financial crisis hit Armenia and its three million people pretty hard. In 2012, when the World Bank began working with policymakers to improve the country’s tax administration, the country faced a pretty bleak picture. Foreign remittances were low, and the domestic economy was slowing. In addition the country had high levels of informal employment.

Tax treaties: Boost or bane for development?

Jim Brumby's picture
  Tax treaties are like a bathtub; a single leaky one is a drain on a country’s revenues.  Photo: Kris Schroeder 


Tax officials and experts grappled with the issue of tax treaties several weeks ago at the IMF-World Bank Annual Meetings. This arcane subject has now emerged as a new lightning rod in the debate on fairness in international taxation. As citizens demand that corporations pay their fair share of taxes and some governments struggle to raise enough revenues for basic services, tax treaties present difficult issues.


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