Enhancing corporate tax systems to support business dynamism

This report provides an update on ongoing work examining the role of tax policy, and corporate income tax in particular, in supporting business dynamism, investment, and economic growth. Drawing on ongoing OECD research, it analyses how corporate taxation affects business dynamism through channels such as corporate tax design, compliance costs, loss-relief provisions, financing frictions, and competitive distortions. Finally, it situates the analysis within broader OECD work on the non-tax determinants of business dynamism, highlighting the importance of a coherent policy framework that also addresses wider structural barriers to business growth and dynamism.