This chapter examines tax administrations’ approaches to identifying and mapping skills, both current and future. It also explores how administrations are seeking to foster a digital culture, internally among staff and externally in their interactions with taxpayers and other stakeholders.
Digitalisation and Digital Transformation in Tax Administrations
Regional Trends and Insights
Abstract
As reported in the data from the International Survey on Revenue Administration (ISORA), in 2024, salary costs accounted for 68% of tax administrations’ operating budgets on average (ADB, CIAT, IMF, IOTA and OECD, 2026[1]). This underscores the importance of staff and their skills to any successful digital transformation. Over recent years, the allocation of staff by function has remained relatively stable. On average, around 29% of staff are employed in the “Registration, services, returns and payment processing” function, with another 24% working in “Audit, investigation and other verification”. These are followed by the “Enforced debt collection” function, which accounts for approximately 10% of staff (see Figure 6.1.).
Note: This is based on the Fiscal Year 2024 ISORA data for 142 economies that were able to provide the data for all tax administration functions.
Source: ADB, CIAT, IOTA, IMF, OECD, International Survey on Revenue Administration, https://isoradata.org (accessed on 17 June 2026).
While these aggregate figures have shown little variation over time, they mask important underlying changes in the nature of the skills required within each function. Tax administrations have already begun to invest in new skill sets to support the expansion of e-administration, the delivery of new digital services, and the development of data and analytical capabilities. Roles that once relied predominantly on procedural knowledge are increasingly complemented by competencies in areas such as systems management, data interpretation, and digital service design.
This shift towards new and more advanced skills is expected not only to continue but to accelerate with digital transformation. As digital platforms and emerging technologies, such as AI, become more deeply embedded in tax administration operations, the skills profile of the workforce will need to evolve accordingly. Existing staff may need to acquire technical expertise across a range of domains, including data analytics, cyber security, and digital risk management. At the same time, administrations may need to recruit new staff with specialised technical backgrounds to complement traditional tax expertise. As mentioned in the 2020 Tax Administration 3.0 report “The skills required will be more focussed on supporting the operation and evolution of the tax administration system as a whole. This will require an expansion in the number of IT professionals, programmers, data scientists, behavioural scientists and strategists.” (OECD, 2020[2])
For a successful digital transformation, tax administrations may benefit from systematically identifying and mapping both the skills that will be required in the future and the capabilities that currently exist within the organisation. This dual perspective allows administrations to assess skill gaps, plan targeted training initiatives, and make informed decisions about recruitment and workforce planning.
As shown in Table 6.1., progress in identifying and mapping skills needed for digital transformation remains uneven across regions. Overall, around one quarter of administrations (24%) report having identified the future skills required for a successful digital transformation across the whole administration, while a further 44% have undertaken such identification for parts of the administration.
Among administrations that have identified future skills needs, 64% also report mapping the skills of their current workforce against those required. Where such mapping exercises are undertaken, the outcomes are typically reflected by administrations in their wider HR strategy (89%). Also, 81% of administrations indicated that mapping covers a multi-year period, while 87% state that results are reviewed regularly.
From a regional perspective, particularly African (89%) and Asian (75-80%) administrations reported having conducted a skills identification exercise either for the whole or for parts of the administration. When it comes to mapping the skills of officials against the skills identified, Asia shows the highted percentages (80-88%). Interestingly, in situations where this skills mapping is carried out, all administrations in Europe and the Pacific Islands do this over a multi‑year period with a regular review cycle and an alignment with the broader HR strategy.
Percentage of administrations with the respective process in place by region
Note: AFR – Africa, AS-CW – Central and West Asia, AS-ES – East and South Asia, EU-CE – Central and East Europe, EU-NSW – North, South and West Europe, LAC – Latin America and the Caribbean, PAC – Pacific Islands
Source: OECD et al. (2025), Inventory of Tax Technology Initiatives, https://www.oecd.org/content/oecd/en/data/datasets/inventory-of-tax-technology-initiatives.html (accessed on 15 June 2026).
Skill identification and mapping are inherently complex processes, particularly in large and functionally diverse organisations. This helps explain why around one third of the administrations that have identified the future skills needed for digital transformation (for the whole administrations or for parts of it) report having relied on external suppliers, such as a consultancy firms, to support both exercises (see Table 6.2.). External expertise may provide methodological rigour, benchmarking insights, and an objective assessment of organisational capabilities.
The challenge of adapting skills to support digital transformation is not unique to tax administrations. Other public sector bodies, as well as private sector organisations, face similar pressures. As a result, collaboration, whether within government or with external partners, can be an effective way to address common challenges, share good practices, and develop scalable solutions.
As demonstrated in Table 6.2., administrations that have identified the future skills needed for digital transformation frequently rely on external collaboration to help address skills gaps. Close to two thirds of these administrations collaborate with other government organisations or external partners to improve staff skills required for digital transformation, highlighting the importance of cross-government and external expertise in building digital capabilities.
Collaboration is less common, though still significant, in relation to recruitment with 43% of administrations report working with other government bodies or external partners to support the development of a potential recruitment pool for digital transformation roles.
Across regions, administrations show distinct patterns in how they use external suppliers and collaborate to build digital‑transformation skills:
Administrations in Asia show the highest use of external suppliers for both identifying future skills and mapping current ones, paired with high levels of collaboration to improve staff capabilities and develop recruitment pools.
Administrations in Central and East Europe as well as Latin America and the Caribbean very much rely on collaboration for staff upskilling but use less frequently external suppliers for skills identification and mapping.
Percentage of administrations with the respective process in place by region
Note: Percentages relate to administrations that have identified the future skills needed for a successful digital transformation either for the whole administrations or for parts of it (see Table 6.1.).
AFR – Africa, AS-CW – Central and West Asia, AS-ES – East and South Asia, EU-CE – Central and East Europe, EU-NSW – North, South and West Europe, LAC – Latin America and the Caribbean, PAC – Pacific Islands
Source: OECD et al. (2025), Inventory of Tax Technology Initiatives, https://www.oecd.org/content/oecd/en/data/datasets/inventory-of-tax-technology-initiatives.html (accessed on 15 June 2026).
To assist administrations with understanding their maturity regarding human resources (HR) management, the FTA developed the Human Resources Maturity Model, which highlights elements that are important for implementing and maintaining good HR practices, including strategy setting and governance processes, workforce planning and management, and staff support. (OECD, 2025[3])
Over the past two years, the National Revenue Agency (NRA) of Bulgaria has undertaken targeted steps to enhance organisational readiness for digital transformation, with a focus on human capital, learning and organisational resilience, in line with the “Tax Administration 3.0” vision of the OECD (OECD, 2020[2]).
Within the Human Resources Directorate, the Training Unit streamlined the internal learning environment by improving the user interface and navigation of the learning management system, resulting in enhanced accessibility, usability and overall user experience for staff.
In parallel, the Training Unit initiated the practical use of generative artificial intelligence as a supportive tool in the development of learning content. AI is applied to assist with the structuring and refinement of texts, improving clarity and consistency of materials, as well as to generate synthetic voice narration for selected training resources. This enables the creation of more flexible and scalable multimedia learning formats. The use of AI is limited to non-sensitive content and does not involve automated decision-making.
At the same time, across the NRA, structured planning is underway for the gradual and responsible deployment of various AI tools. This work is carried out by the unit responsible for information systems and technological infrastructure, and it includes the identification of needs and appropriate use cases, consideration of ethical and governance aspects, as well as the development of tailored tools and learning programs aimed at strengthening digital skills related to the informed and responsible use of AI.
Source: Information provided by Bulgaria (2026).
Transforming organisational culture is a core element of successful digital transformation in tax administrations. This involves articulating and communicating a clear vision of digital transformation and the benefits it can deliver, not only within the administration itself, but also for taxpayers and society more broadly.
Building a digital culture is typically a gradual process that requires challenging established ways of working, encouraging experimentation, and embedding new methods and mindsets across the organisation. Taking a strategic and structured approach can therefore be beneficial.
As shown in Table 6.3., 65% of administrations report having developed a strategy to foster a digital culture within the administration. In addition, 51% have developed similar strategies aimed at the taxpayer community, while 45% have done so in relation to the advisor community.
As mentioned, communication is important for success, particularly to maintain stakeholder buy-in, which is why:
68% of administrations ensure their digital transformation strategy is communicated to all staff so that they understand their roles and responsibilities; and
71% of administrations regularly update staff and other key stakeholders on the implementation and progress of the digital transformation strategy.
Across regions, administrations display distinct patterns in how they foster a digital culture through strategy, communication, and engagement, with administrations from Africa, Asia, and Latin America and the Caribbean reporting relatively high rates of developing strategies to build a digital culture within the administration. Communication of digital‑transformation changes to officials is very similar across almost all regions as is regular engagement with staff and stakeholders.
Percentage of administrations with the respective process in place by region
Note: AFR – Africa, AS-CW – Central and West Asia, AS-ES – East and South Asia, EU-CE – Central and East Europe, EU-NSW – North, South and West Europe, LAC – Latin America and the Caribbean, PAC – Pacific Islands
Source: OECD et al. (2025), Inventory of Tax Technology Initiatives, https://www.oecd.org/content/oecd/en/data/datasets/inventory-of-tax-technology-initiatives.html (accessed on 20 January 2026)
Canada – Digital learning and culture strategy
The Canada Revenue Agency (CRA) is advancing its digital transformation through the Digital Learning and Culture Strategy, designed to equip its 50 000+ employees with the mindset, skills, and behaviours needed to embed digital practices in their work. This initiative is enabling the CRA to deliver better programmes and services while transforming how employees work and grow.
The CRA’s approach to the people side of digital transformation is structured around three stages:
Building Awareness: Introducing employees to digital concepts and foundational learning opportunities.
Integration and Application: Supporting employees in applying digital knowledge to their roles, fostering behavioural change.
Empowerment and Growth: Enabling employees to continuously refine processes using digital practices.
This strategy is built on two key pillars: Digital Learning and Digital Culture, which together empower employees to thrive in a digitally evolving organisation.
Digital Learning Programme
Offers tailored resources, developed in collaboration with CRA experts and the Canada School of Public Service, covering topics including Agile, artificial intelligence, and data management.
Serves as a centralised hub, iteratively evolving based on employee feedback and organisational needs to address varying levels of digital maturity.
Digital Culture
Embeds digital practices as part of employees’ belief systems, making them second nature in their work.
Includes sessions on the Government of Canada Digital Standards, which include a needs assessment survey to identify and address learning gaps.
Encourages digital behaviours through storytelling, success stories, and awareness initiatives, motivating employees to challenge outdated processes and adopt modern practices.
The CRA recognises that digital transformation requires adaptability and collaboration, especially with a workforce spanning diverse roles and digital proficiencies. By fostering a culture of continuous learning and embedding digital practices into its operations, the CRA is positioning itself as a leader in public sector digital transformation, ensuring it remains responsive and effective in a rapidly evolving digital landscape.
Japan – Promoting consistent digitalisation from transactions to accounting and taxation
In conjunction with the digitalisation of tax procedures, digitalising both economic transactions and administrative tasks will make it possible for businesses to handle digital processes seamlessly. This will lead to improvements in productivity and management through higher efficiency of operations and data accuracy by preventing simple errors. Digitalising billing, payment, and record-keeping, where data is preserved without modification, reduces administrative burdens and allows linking such data to tax declaration and payment processes, improving overall tax compliance.
Therefore, the National Tax Agency of Japan (NTA) has been engaging in various initiatives to promote digitalisation among businesses, such as publicising information comprehensively and clearly with respect to tax-related digital measures. In addition, the NTA has been collaborating and cooperating with other ministries and organisations to implement measures for disseminating clear information concerning initiatives that support the digitalisation of businesses, including digital invoice and cloud accounting software.
Sources: Information provided by Canada (2026) and Japan (2026).
More information on the importance of transforming the organisational culture and adopting an innovative and taxpayer-centric mindset throughout the organisation, including recommended actions and case studies, can be found in the report Tax Administration 3.0 - From Vision to Strategy (OECD, 2025[4]).
References
[1] ADB, CIAT, IMF, IOTA and OECD (2026), International Survey on Revenue Administration, https://isoradata.org (accessed on 17 June 2026).
[3] OECD (2025), Human Resources Maturity Model, OECD, Paris, http://www.oecd.org/content/dam/oecd/en/topics/policy-issues/tax-administration/human-resources-maturity-model.pdf (accessed on 27 May 2025).
[4] OECD (2025), Tax Administration 3.0 - From Vision to Strategy, OECD, Paris, http://www.oecd.org/content/dam/oecd/en/topics/policy-issues/tax-administration/tax-administration-3-0-from-vision-to-strategy.pdf.
[2] OECD (2020), Tax Administration 3.0: The Digital Transformation of Tax Administration, OECD Publishing, Paris, https://doi.org/10.1787/ca274cc5-en.