Developing countries will be able to achieve internationally agreed development goals more quickly if they put their government finances in order. More efficient tax collection is a key challenge. The Netherlands helps countries meet this challenge. The private sector also benefits from a transparent and predictable tax system.
Addis Tax Initiative
More than 35 countries and international organisations are working to improve tax services in developing countries. The Netherlands was one of the prime movers behind the Addis Tax Initiative that was launched at the Financing for Development Conference in July 2015. There are three parts to the initiative. Donor countries will double their current efforts to build the capacity of tax departments in low- and middle-income countries by 2020. Partner countries will introduce fiscal reforms and undertake to use the extra revenue generated to fund their development agenda. And donor countries, in turn, will undertake to prevent their own tax policies from hampering the generation of tax revenue in developing countries.
The Netherlands supports various activities to achieve more efficient tax collection in developing countries, for example by tackling tax avoidance, curbing misuse of tax treaties, proposing anti-abuse clauses, providing technical assistance and strengthen tax policy.
For more information, download our complete factsheet: Taxes crucial to development - Legislation.
Do you have questions or would you like to have some more information? Contact the Sustainable Economic Development Department of the Ministry of Foreign Affairs.