Colombia recorded the OECD’s sharpest fall in taxation in 2024

Colombia stood out across the OECD in 2024 for the sharpest decline in taxation, moving against a broader rise in the tax burden. The drop largely resulted from a substantial reduction in corporate tax revenue.

The OECD said in its annual report on tax reforms that Colombia’s tax-to-GDP ratio fell by 2.21 percentage points. Across the 36 member countries with preliminary data, taxation increased by an average of 0.4 points, from 33.7% to 34.1% of GDP.

Colombia’s fall was driven mainly by a 1.77-point decline in revenue from corporate income tax. Property-tax revenue also dropped by 0.31 points. South Korea, Norway and New Zealand recorded the next-largest decreases, at 1.54, 1.44 and 0.83 points respectively.

At the other end of the scale, Lithuania recorded the biggest increase in tax revenue as a share of GDP, rising by 2.4 points, followed by Slovenia with a 1.93-point increase. Spain was among the 22 OECD countries where taxation increased, rising by 0.27 points because of higher income, corporate and social-security taxes, partly offset by lower property and consumption taxes.

The report, which covered 92 jurisdictions, said the OECD-wide tax ratio has remained broadly stable since 1990, fluctuating between 33% and 34% of GDP. High-income countries generally have ratios above 30%, while middle-income countries tend to be near 20%.

The OECD also said corporate tax rates remained stable in 2025 for a third consecutive year, ending the downward trend of the previous two decades. However, many countries have narrowed their tax bases through exemptions for investments, particularly in energy transition, technology and research. More countries also raised taxes on banks and other financial institutions in 2025, including Colombia.