Global Tax Program FY24 ANNUAL PROGRESS REPORT FISCAL POLICY AND SUSTAINABLE GROWTH UNIT MACROECONOMICS, TRADE AND INVESTMENT GLOBAL PRACTICE JULY 2023 – JUNE 2024 Global Tax Program DEVELOPMENT PARTNERS The Global Tax Program Umbrella Trust Fund is generously supported by: CONTENTS Acronyms 6 I. Executive Summary 8 II. Introduction 9 III. GTP Portfolio Overview 13 A. Portfolio Update 13 B. Financial Update 16 IV. Results monitoring at Program level 19 A. Aggregated results at Program level 19 V. FY24 Progress Update 23 A. Window 1 - Global Tax Activities and Global Public Goods 23 B. Window 2 - Country-level Activities 27 C. Window 3 - Actionable Research and Data, Knowledge & Learning 42 D. Window 4 - Program Management 44 Annexes: 46 Annex 1. Financial Information 46 Annex 2. GTP Workplan 48 Annex 3. WB informed loans by GTP-funded activities in FY24 55 Annex 4. Performance dimensions 57 FIGURES Figure 1. Overview of GTP Activities as of FY24-end 12 Figure 2. GTP Portfolio Count 13 Figure 3. GTP Portfolio Growth 13 Figure 4. GTP Engagements by Country Group as of June 30, 2024 15 Figure 5. GTP Total Expenditures 16 Figure 6. GTP Website Reach and Influence 44 Figure 7. GTP Website Visitors by Region 45 Figure 8. KM publications and events in FY24 45 TABLES Table 1. Development Partners’ Contributions to the GTP Umbrella Trust Fund as of June 30, 2024 (in millions) 17 Table 2. GTP Cash Balances, as of June 30, 2024 (in US$) 17 Table 3. Number of countries that have implemented reform recommendations since Program’s inception 20 Table 4. Number of outputs and outcomes achieved since Program’s inception 20 Table 5. Key Aggregated Results Under Window 1 26 Table 6. Key Aggregated Results Under Window 2 – Outcome Level 36 Table 7. Key Aggregated Results Under Window 2 – Output Level 38 Table 8. Key Aggregated Results Under Window 3 43 Table 9. GTP Umbrella Development Partners Contributions, as of June 30, 2024 (in US$) 46 Table 10. Total Donor Commitments to the GTP Umbrella (in US$), as of June 30, 2024 47 Table 11. Updated GTP Workplan as of June 30,2024 48 Table 12. GTP Detailed Workplan as of June 30, 2024, and FY25 Budget 51 BOXES 28 Box 2: Enhancing Tax Compliance in Kosovo: The Role of an Innovative VAT Lottery in Reducing Informality and Boosting Revenue 30 Box 3: Zambia’s journey to enhance is property tax system 33 34 MAPS Map 1. Geographic Focus of GTP DRM Country-Specific Support, since 2018 14 Map 2. GTP Portfolio by Country since the Program’s inception. 15 Map 3. Active WB loans informed by GTP-funded activities, since 2018 22 Acronyms AfCFTA African Continental Free Trade Area Agreement AML Anti-Money Laundering ASA Advisory Services and Analytics ATAF African Tax Administration Forum BEPS Base Erosion and Profit Sharing BCM Business Continuity Measures CFT Combating the Financing of Terrorism CIAT Inter American Center of Tax Administrations CPI Corporate Income Tax CMU Country Management Unit CoP Community of Practice CPAT Carbon Pricing Assessment Tool CPLC Carbon Pricing Leadership Coalition CRATES Customs Reforms and Trade Enhancement Somalia CVP Communications and Visibility Plan DFID Department for International Development (UK) DRM Domestic Resource Mobilization EAC East African Community ECR External and Corporate Relations EOI Exchange of Information EOIR Exchange of Tax Information Requests ESMAP Energy Sector Management Assistance Program FCV Fragility, Conflict and Violence FCS Fragile and Conflict-Affected Situations FCI Finance, Competitiveness, and Innovation FCDO The Foreign, Commonwealth & Development Office FfD International Financing for Development FIODS Financial Information and Investigation Services FIRS Federal Inland Revenue Service FPP Fiscal Policy Pillar FPU Fiscal Policy Unit GDT General Department of Taxation GGP Governance Global Practice GMT Global Minimum Tax GP Global Practice GST Global Sales Tax GTP Global Tax Program IDB Inter-American Development Bank IEG Independent Evaluation Group IFFs Illicit Financial Flows IMF International Monetary Fund IPF Investment Project Financing IRC Internal Revenue Commission ITC Innovations in Tax Compliance KM Knowledge Management LIMC Low- and Middle-Income Countries LTO Large Taxpayer Office MAP Mutual Agreement Procedure MDTF Multi-Donor Trust Fund MOF Ministry of Finance MTI Macroeconomics, Trade, and Investment Global Practice MTRS Medium Term Revenue Strategy NORAD Norwegian Agency for Development Cooperation NRA National Risk Assessment NSW National Single Window OECD Organization for Economic Co-operation and Development PforR Program for Results PROFR Prosperity from Revenue program PCT Platform for Collaboration on Tax PIT Personal Income Tax PM Practice Manager PNG Papua New Guinea PFM Public Financial Management RF Result Framework SC Steering Committee SDGs Sustainable Development Goals SDTF Single Donor Trust Funds SECO State Secretariat for Economic Affairs, Switzerland SRGI Strategic Revenue Growth Initiative SSAP Small States in Asia and Pacific SSBS Sugar-Sweetened Beverages STS State Tax Service TA Technical Assistance TADAT Tax Administration Diagnostic Assessment TAXGIP Tax Administrators’ Exchange of Global Innovative Practices TF Trust Fund TFA Trade Facilitation Agreement TPD Tax Policy Department TPAF Tax Policy Assessment Framework VAT Value-added Tax WBG World Bank Group WCO World Customs Organization WHO World Health Organization Global Tax Program FY24 Annual Progress Report I. Executive Summary The FY24 Annual Report provides an update on the progress of the activities undertaken by the Global Tax Umbrella Program (GTP Umbrella) during the period of July 2023 – June 2024. The GTP is a main vehicle in WB’s support to Domestic Resource Mobilization in developing countries: the GTP is the only Umbrella Trust Fund of the World Bank that is mandated to raise funds for and dedicated to cover tax policy, tax and customs administration. Since its inception in 2018, the GTP-funded activities amplified their impact by leveraging other Bank instru- ments such as concessional lending operations and technical assistances projects with a DRM element. GTP funded projects further leveraged their impact as their analytics and policy recommendations informed the design and implementation of 27 DRM-related lending operations, totaling over US$ 7.67 billion (most of which were IDA grants or concessional IDA lending). During the review period, the GTP has been generously supported by nine development partners: Denmark, France, Japan, Luxembourg, Netherlands, Norway, Switzerland, the United Kingdom, and the Bloomberg Philanthropies. At the close of FY24, total contributions to the GTP Umbrella in Phase 1 amounted to $87.4 million. Donor funds committed during phase 1 are fully allocated. The timeline extension of the GTP Multi Donor Trust Fund until end-June 2028 allowed the World Bank management to set strategic fundraising tar- gets and receive generous support for phase 2 of GTP. The total pledges for Phase 2 stand at US$51.1 million, with US$20.6 million already received and US$30.5 million to be received in the coming years. In this reporting period, the GTP executed a total of US$ 15.5 million and project teams provided technical assistance to 70 countries. By June 30, 2024, the GTP portfolio included 77 activities (including success- fully delivered/closed activities) in 110 countries. 88 percent of the GTP portfolio is channeled to support country-level activities, of which close to 70 percent were directed to countries that are International Devel- opment Association (IDA)-eligible. 32 percent of the portfolio has been dedicated to supporting Fragile and Conflict-Affected Situations (FCS). This report documents in detail the satisfactory portfolio and project level performance of GTP. The FY24 portfolio review presented in this report builds on a detailed project level review that can be found in the FY24 Project Card report. The FY24 portfolio review concludes that the GTP performance is satisfactory (85% of assessed projects achieved a satisfactory or fully satisfactory performance). Additionally, nearly 90 percent of ongoing activities (28) in the portfolio (FY25) are found to be on track to meet their result targets. The GTP-funded project teams are supporting country-level activities on a wide range of thematic areas cov- ering all aspects of tax policy reform and modernization and digitalization of the tax and customs adminis- trations. Portfolio also includes thematically organized projects that provide tailored support at country-level on a wide range of important themes such as international taxation, rationalization of tax incentives, and in- novative approaches to voluntary tax compliance, among others. GTP puts tax and development as a priority with focused projects supporting countries on environmental/green taxes, gender equality and taxation, and health taxes. 8 Global Tax Program FY24 Annual Progress Report II. Introduction 1. Across the developing world, public finances are under strain. Many countries faced fiscal imbal- ances before 2020, which were then exacerbated by the shocks of COVID-19 and the multiple crises that followed, including Russia’s invasion of Ukraine. These crises reduced developing countries’ rev- enues while increasing their spending and financing needs. • Sixty percent of low-income countries had fiscal deficits greater than 5 percent of GDP in 2022, as they increased spending and introduced temporary measures (which often reduced tax revenue) to alleviate the impact of these shocks. In 2024, the average fiscal deficit in LICs (3.4% of GDP) re- mains about one percentage point of GDP above pre-pandemic levels. • In 83 percent of low-income countries and 48 percent of lower middle-income countries, the collec- tion of taxes and social security revenues in 2023 was below 15 percent of GDP—a level generally required to meet developmental needs. In Low Income Countries, the average tax-to-GDP ratio was at 10.6 percent in 2023. 2. To resume economic growth, reduce poverty, and support climate action, countries need to in- crease tax collection and make tax systems more equitable and efficient. The good news is tax policy, and tax and customs modernization reforms can help generate much needed revenues while also ensuring predictable, efficient and equitable tax systems that support inclusive growth. 3. The World Bank is the largest concessional lender on DRM. The WBG active lending portfolio includes $4.8 billion to support DRM-specific lending interventions, of which $3.2 billion supports IDA/Blend clients and $1.5 billion supports IBRD clients through 179 projects with an emphasis on tax administration reform for lending operations. New operations with DRM-specific lending reached US$ 2.3 billion in FY24. 4. Domestic Resource Mobilization is a central pillar in the World Bank Evolution Roadmap, which underpins Bank’s commitment to supporting countries in raising more and better revenues with a re- newed and improved DRM approach. DRM is a central pillar in country policy dialogue and country engagement (e.g., Country Partnership Framework), and core diagnostics (e.g., the Public Finance Reviews). This consultative, analytically grounded, and systematic approach allows DRM related anal- ysis and reform recommendations to be leveraged and supported by Bank’s technical assistance and lending operations. The World Bank’s DRM prioritization is also integrated in its impact measurement, including the Scorecard. 5. Global Tax Program remains to be a key vehicle in delivering World Bank’s renewed and im- proved DRM approach. GTP role in Bank’s non-lending support to DRM is significant, financing about two-thirds of the Bank’s non-lending tax themed activities.1 GTP-funded projects are firmly situated within WB operations at country level to ensure maximum impact and sustainability of re- sults, such as core country diagnostics and ensuing dialogue -including the revamped PFRs- and WB’s lending instruments. For instance, in FY24, analytical work funded by the GTP informed numerous revamped PFRs in FY24. Additionally, in FY24, analytics and technical assistance from GTP projects 1 GTP portfolio consists of Bank-executed advisory and analytical services (ASA). ASA describes all non-lending activities that help client countries advance a development objective. The World Bank provides ASA to support design or implementation of better policies, strengthen institutions, build capacity, inform development strategies or operations, and contribute to the global development agenda. 9 Global Tax Program FY24 Annual Progress Report have informed the design of seven new approved lending operations – most of which were IDA grants or concessional IDA lending - with a cumulative lending value of US$ 3.58 billion of which US$ 1.6 billion are supporting DRM-specific lending interventions. 6. Beyond comprehensive country support, GTP is also an important vehicle for the Bank to en- sure coordination and collaboration in DRM space. Since its inception in 2018, the GTP project teams collaborated with over 50 partner organizations who are active in DRM space, including PCT partners—IMF, OECD, UN; regional tax organizations and regional banks (e.g, ATAF, ADB, IADB); and academic and think-tank partners. These partnerships have been crucial in coordination and col- laboration at country level, ensuring higher impact while avoiding duplication of efforts. This approach has been particularly effective in international taxation, such as the joint work on the implementation of the Global Minimum Tax with strategic partners and regional organizations, including the OECD, IADB in LAC, and ATAF in Africa. Another strong area of collaboration GTP supported is in the area of tax tools and diagnostics that have become valuable resources for our community (e.g., WB and IMF collaboration on TADAT for tax administration, and CPAT for climate and fiscal analysis). The recently launched IMF and WB’s Joint Domestic Resource Mobilization Initiative (JDRMI) builds on existing collaboration and will further foster synergies in providing DRM support.2 7. The GTP MDTF is now in its second phase which will run until June 20283. The current TF budget is fully allocated to the current portfolio and pipeline, with 51 activities4 being implemented in FY24, and 23 of these activities completed by the end of June 2024. The GTP has successfully developed a robust portfolio that aligns with the priorities of IDA20, supporting over 100 countries across all Bank regions. Figure 1 show a snapshot of the GTP Portfolio. 8. In FY24, a completion evaluation focusing on lessons learned from the GTP’s temporal Fiscal Pillar was completed. The Fiscal Pillar successfully finalized all its activities by end of FY23.5 Addi- tional details about this Pillar and results achieved can be found in the publicly available completion report. 9. The GTP second phase portfolio development is now in progress. The fundraising process now on track, total pledges for the period 2024-2028 have reached US$51.1 million, which allows GTP to more systematically develop its phase 2 portfolio. A first batch of proposals was shared with the GTP Steering Committee for review and decision on October 22, 2024. With some phase 2 donor commit- 2 https://www.imf.org/-/media/Files/Research/imf-and-g20/2024/domestic-resource-mobilization.ashx 3 In FY23, an external Mid-Term Evaluation of the GTP DRM Portfolio was successfully concluded and found that the GTP is a well-managed program that has performed well against the OECD-DAC evaluation criteria (relevance, coherence, effectiveness, and efficiency). A new phase to the Global Tax Program Umbrella MDTF started with the timeline extension granted by SC and Bank Management in the Fall of 2022. The MDTF timeline was extended from June 2024 to June 2028. 4 In this report we make a distinction between projects and activities to account for cases where a project has multiple distinct activities. The DRM Portfolio is structured in three main Windows: W1 - Development of Global Public Goods, W2 - Country Level Activities, and W3 - Innovative Research Methods, Knowledge, and Learning. The activities funded by the GTP are categorized and organized across these windows. Moving forward, we will refer to activities when presenting portfolio numbers, keeping this distinction in mind. 5 The Temporal Fiscal Pillar was introduced shortly after the COVID-19 pandemic in FY20 with the objectives of (i)mitigating the social and economic impact of the pandemic by providing advice to governments on effective, efficient, and balanced fiscal policy responses; and (ii) fa- cilitating accountability including through the monitoring of and reporting on resource use for the COVID response. The Program supported 40 projects across 33 countries, including two regional projects. The Program received US$5.6 million in Developing Partner contributions from the governments of France, Norway, Switzerland, and the United Kingdom. A total of US$4.9M was allocated to projects, of which US$4.7M has been disbursed. The remaining unused balance of US$0.3M is transferred to the Global Tax Program Trustee Account upon closure. In this reporting period, the Fiscal Pillar underwent an independent evaluation to distill lessons learned from this temporal crisis response mechanism. The final evaluation report was finalized, and in June 2024, key findings from the report, as well as the WB’s internal completion report, were presented at a dedicated session to GTP Donors in Washington DC. 10 Global Tax Program FY24 Annual Progress Report ments are now in place, the GTP Secretariat will launch a new round of Call for Proposals in January 2025. As GTP matures in phase 2, its portfolio is expanding and deepening in following terms: • Deepening and broadening existing country engagements based on country demand leveraging results with strong links to concessional lending (e.g., Senegal). • Comprehensive support to countries that were not previously in the GTP portfolio (e.g., Ma- lawi, Zimbabwe and Burundi in Africa; countries new to the GTP portfolio under the multi-country East Asia Pacific Engagement). • Building on the strong foundation of GTP’s thematically focused country work in phase 2. More specifically: - Continue to support developing country analytic support and capacity building in interna- tional tax. - Continue to support developing countries to improve the design of their tax incentives re- forms and build country-level capacity to assess their effectiveness, monitoring and impact. - Expanding and deepening of the environmental tax support at country level. - Continue and expand support to countries on tax and development: Deepening and expand- ing country support on tax and development (e.g., health taxes, gender and taxation). While building stronger country support to key progressivity linked tax themes (e.g., taxation and informality, capital income/property taxation, and extractives taxation). • Frontier data collection and research to facilitate DRM reforms. building and expanding on our work on voluntary tax compliance and tax policy analysis, with the launch of World Bank’s new DATAX project which will conduct cutting-edge and operationally relevant research with micro tax data. • Strengthen Tax and Customs Administration Capacity and Digitalization. GTP project teams will continue to assist countries strengthening tax and customs administration capacity and digita- lization. 10. The FY24 Annual Report aims to report on (1) the progress of the GTP Umbrella at program and project level; and (2) the financial status of the Umbrella Trust Fund. The GTP projects and their activities are detailed in this Report are financed by the Multi-Donor Trust Fund TF072864 and Single Donor Trust Funds TF072930 and TF073303. This year’s report covers fiscal year 2024 (FY24), which spans from July 01, 2023, to June 30, 2024. The Report is submitted to the GTP Steering Committee to be reviewed during its annual meetings scheduled on November 6, 2024. 11 Global Tax Program FY24 Annual Progress Report Figure 1. Overview of GTP Activities as of FY24-end The Global Tax Program (GTP) serves as a key vehicle to delivering the Bank’s domestic revenue mobilization (DRM) Approach. By June 30, 2024, the GTP portfolio included 76 activities in 110 countries, of which 51 percent are International Development Association (IDA)-eligible and 22 percent are in Fragile and Con ict-Affected Situations (FCS). OVERVIEW OF GTP DRM PILLAR ACTIVITIES AS OF FY24 END COUNTRIES SUPPORTED MIDDLE EAST AND NORTH AFRICA 76* $ 87M $ 51M 56 IDA 2 Activities in implementation in FY24 $ 600K sum of allocations | $ 598K disbursed (100%) TOTAL TOTAL TOTAL 110 ACTIVITIES CONTRIBUTIONS PLEDGES TOTAL 24 FRAGILE (Phase 1) (Phase 2) SITUATIONS EUROPE AND CENTRAL ASIA 6 Activities in implementation in FY24 $ 12M sum of allocations | $ 10.4M disbursed (87%) WORLD 16 Activities in implementation in FY24 Country work: $ 29.9M sum of allocations | $ 22M disbursed (73%) Research/Tax data: $ 7.6M sum of allocations | $ 6.6M disbursed (87%) 14 Activities closed in prior scal years EAST ASIA AND PACIFIC 5 Activities in implementation in FY24 $ 4M sum of allocations | $ 3.4M disbursed (87%) LATIN AMERICA AND CARIBBEAN 1 Activity closed in prior scal years 5 Activities in implementation in FY24 $ 2.5M sum of allocations | $ 1,5M disbursed (62%) AFRICA 19 Activities in implementation in FY24 SOUTH ASIA $ 21.5M sum of allocations | $ 16.8M disbursed (78%) Support to concessional IDA operations in Pakistan’s 4 Activities closed in prior scal years KP and Punjab provinces as part of gender and tax work 1 Activity closed (Afghanistan Customs) * Cumulated number of activities since the program’s inception in 2018. This number include 53 activities in implementation in FY24 and 23 activities that closed in prior fiscal years. 12 Global Tax Program FY24 Annual Progress Report III. GTP Portfolio Overview A. Portfolio Update 11. This fiscal year, the cumulative number of activities funded by the GTP reached 76, including closed activities since the program inception (Figure 2 and Figure 3). In FY24, seven new activities were successfully operationalized and started implementation. These included five projects: i. Senegal Enhancing Capacity for Achievement of MTRS Goals; ii. Mauritania Tax Revenue Mobilization; iii. Gabon Technical Assistance on Tax Reform; iv. Burundi Tax Policy and Administration Reform; and v. the second phase of the Tax Administration Diagnostic Assessment Tool (TADAT) project. Additional- ly, two new global tax projects were also launched i. Quantitative Tools for Environmental Tax Reform Analysis and ii. Revenue BOOST. 12. In FY24, the GTP DRM portfolio had of a total of 53 activities in implementation. Forty-four of these are implemented under Window 2— country level activities; five activities implemented under Window 1— global and/or regional public goods; and four activities implemented under Window 3— actionable research, data generation, knowledge, and learning activities. By the end of June 30, 2024, 22 of these activities were closed, with 19 successfully achieving most of their expected outputs and outcomes. For more information on these activities, please refer to the implementation progress details in Section IV of this report. Figure 2. GTP Portfolio Count Figure 3. GTP Portfolio Growth 80 90 70 80 60 30 70 76 60 67 50 27 50 40 51 40 30 42 30 46 29 20 20 16 3 31 10 10 17 5 9 3 4 8 7 0 0 Development of Country Level Innovative Total FY19 FY20 FY21 FY22 FY23 FY24 Global Public Activities research methods, Goods Knowledge and Activity Count Pipeline Linear (Activity Count) Learning Closed Active 13. In FY24, WB project teams supported GTP funded activities in 70 countries, bringing the cumulative support to 110 countries since the program’s establishment in 20186. This fiscal year, two new countries – Burundi and Gabon - were added to the GTP portfolio and began receiving comprehensive technical support. Map 1 below illustrates the geographic focus of the GTP portfolio. 14. In Gabon, the project supports reforms to the existing tax administration processes, optimize current tax systems with better and more accurate data, and revitalize underutilized revenue sources. Key areas 6 New engagements are: Burundi, Democratic Republic of Congo, Dominica, Gabon, South Sudan, Suriname, Tuvalu. 13 Global Tax Program FY24 Annual Progress Report covered under this DRM intervention include tax and customs administration, the VAT system, prop- erty tax, and tax expenditures. 15. In Burundi, technical assistance project focuses on tax policy reforms to widen the tax base and strengthen tax compliance, preparing a Medium-term Revenue Strategy (MTRS), conducting a tax administration diagnostic assessment (TADAT), and providing recommendations for improvements in tax administration processes for excise and the mining sector. GTP funded activities in Burundi will complement the modernization of the tax audit framework, and the establishment of a tax administra- tion dashboard for the Office Burundais des Recettes (OBR), undertaken under the IPF Modernization of Public Financial Management (P180987). Map 1. Geographic Focus of GTP DRM Country-Specific Support, since 2018 Africa: 39 countries EAP:12 cpontriess ECA: 20 countriess LAC: 22 countriess MENA: 10 countriess SA: 7 countries 16. The GTP is dedicated to assisting countries with the greatest needs in mobilizing domestic reve- nue. Close to 90 percent of the GTP DRM portfolio is channeled to country specific work (including multi-country regional projects). Notably, nearly 70 percent of these resources flow to IDA-eligible countries. GTP’s expertise lies in providing tailored tax reform support to Low-Income Countries (LICs) and Lower-Middle-Income Countries (LMICs), where the needs for DRM are most critical. Al- location of resources are strategically aligned with the WB’s broader efforts to support countries with economies below the minimum desirable tax-to-GDP ratio of 15%; as well as support to fragile and conflict-affected situations (FCS). Since 2018, the GTP has extended its support to over 20 countries in FCS. Regionally, almost half of GTP’s resources are dedicated to providing technical assistance to countries in the Africa region, with a significant focus on the Sub-Saharan Africa. Figure 4 below shows the GTP engagements by country groups (income, IDA-eligible countries, tax-to-GDP ratio below 15 %; affected by fragility and conflict, and region) in terms of budget allocation; 17. Map 2 illustrates the DRM portfolio size (in US$) by country as of FY24-end. 14 Global Tax Program FY24 Annual Progress Report Figure 4. GTP Engagements by Country Group as of June 30, 2024 2. Align with IDA 4. Half of founds in 1. LIC and LMIC focus 3. Focus on FCS Priorities Africa (mainly SSA) 50 80% 69% 68% 45 % of total allocations country speci c 70% 61% 40 60% 35 Amount Millions US$ 48% 48% 30 50% 38% 25 32% 40% 31% 20 26% 30% 24% 24% 15 20% 10 12% 10% 5 2% 4% 10% - 0% Low Low & Upper High IDA Non-IDA <15% >15% FCS Non-FCS AFR ECA LAC EAP SA middle middle T/GDP T/GDP Map 2. GTP Portfolio by Country since the Program’s inception. 18. In FY24, GTP projects executed a total of US$ 15.5 million (see Figure 5) out of the US$ 18.5 million of the total budget planned for the period, representing 84 percent execution rate. Since FY23, the program’s budget execution performance has improved considerably compared to previous years. With the full lifting of restrictions and constraints posed by the COVID pandemic, project teams are now conducting more in-person technical missions, trainings, and events. Nonetheless, project teams continue to use remote technical assistance, including virtual meetings, capacity building events and workshops. Conducting virtual meetings has proven to be a cost-effective benefit, as it allows proj- ect teams to maintain sustained dialogue with counterparts without the need for frequent travel, thereby reducing travel expenses and optimizing budget utilization. For instance, the International Tax project team relies on virtual meetings to provide ongoing technical assistance related to transfer pricing audit cases. This activity typically involves multiple meetings with tax authorities. For example, this fiscal year, the team held six meetings with tax authorities from Eswatini, five meetings with authorities from Lesotho and over 30 meetings with authorities from Uganda, all provided jointly with ATAF. 15 Global Tax Program FY24 Annual Progress Report Figure 5. GTP Total Expenditures 20,000 100% 17,654 84% 81% 74% 15,516 80% 15,000 62% 57% 56% 60% 10,208 10,000 9,416 7,337 40% 5,000 4,336 20% 1,797 0 0% FY18 actual FY19 actual FY20 actual FY21 actual FY22 actual FY23 actual FY24 actual Total Expenditure (in '000 US$) Execution rate vs planned budget B. Financial Update 19. GTP Donor’s total contributions to the GTP Umbrella’s first phase (FY18-FY24) were US$87.4 million. This amount includes contributions to the GTP MDTF (including thematic contributions), SECO and Netherlands Single Donor Trust Funds (SDTF), and the Fiscal Pillar. All of these contribu- tions have been received and allocated to projects. 20. During this reporting period, four GTP development partners—Norway, SECO, Japan and Bloomberg Philanthropies— have signed additional contributions for the second phase of the GTP MDTF (FY24-FY28). In July 2023, Bloomberg contributed an additional US$3 million to the MDTF-Health Taxes. In December 2023, Norway and SECO pledged further contributions of NOK 110 million (US$10.5 million) and CHF 8 million (US$9.2 million), respectively. In March 2024, Ja- pan committed an additional US$1.2 million to the GTP MDTF. 21. During the first half of FY25, two GTP development partners increased their pledges to the MDTF. Denmark committed an additional DKK 40 million (US$5.8 million) in July 2024, followed by France with EUR 10.5 million (US$11.3 million) in August, and the Netherlands with US$10 mil- lion in September. These contributions will be accounted for in the forthcoming reporting cycle, set for the first quarter of 2025. 22. Following these new contributions, the total contributions to the GTP MDTF for its second phase (FY24-FY28) stands at US$51.1 million (see Table 1), with US$20.6 million already received and US$30.5 million to be received in the coming years. For more details on GTP Umbrella financial details please refer to Annex 1, Table 9 and Table 10). 16 Global Tax Program FY24 Annual Progress Report Table 1. Development Partners’ Contributions to the GTP Umbrella Trust Fund as of June 30, 2024 (in millions) Contributions ** Period FY24-FY28 (Phase 2) Development Partner Amount in Equivalent US$ % Norway 10,264,020 20% Switzerland 9,256,294 18% Netherlands 10,000,000 20% France 11,604,975 23% Denmark 5,800,885 11% Japan 1,200,000 2% Bloomberg Philanthropies* 3,000,000 6% Preferenced - Health Taxes Total 51,126,174 23. With the new contributions recently signed, the cash balance for the GTP MDTF, amounting to US$42.9 million, will enable GTP to continue into its second phase from 2024 to 2028. The GTP Steering Committee is expected to endorse the first batch of project proposals shared on October 22 and October 31, 2024, with an envelope of US$ 15.7 million, and a new call of proposals is set to be launched before the end of this calendar year. Consequently, we anticipate that the current cash balanc- es will significantly decrease after the allocation of funding to the new set of GTP-funded activities in FY25. The projected cash flow position is provided in Table 2. Table 2. GTP Cash Balances, as of June 30, 2024 (in US$) MDTF TF072864 (in US$) - DRM Pillar FY2018 - Donors FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 2021 Contributions Australia 7.070.555,00 Denmark 5.253.317,17 5.800.884,63 France 1.187.100,00 3.265.700,00 3.324.600,00 4.968.225,00 3.312.150,00 Japan 3.500.000,00 1.500.000,00 1.200.000,00 Luxembourg 1.949.958,19 462.200,00 521.800,00 1.100.250,00 Netherlands 2.000.000,00 1.000.000,00 2.500.000,00 2.500.000,00 2.500.000,00 2.500.000,00 Norway 12.256.657,06 4.503.803,31 2.894.954,50 3.794.934,57 1.854.771,40 1.854.771,40 1.854.771,40 1.854.771,40 Switzerland 3.496.151,04 880.475,46 6.306.616,21 - 1.179.871,39 1.179.871,39 589.935,69 United Kingdom1 5.475.796,50 984.295,00 1.583.699,85 1.115.110,50 Bloomberg 1.813.000,00 2.187.000,00 1.137.000,00 1.863.000,00 Total 44.002.534,96 12.596.473,77 7.187.454,35 20.454.795,91 9.542.371,40 10.502.867,79 8.846.792,79 4.944.707,09 Contributions Disbursements 20.899.267,87 8.421.100,88 14.086.190,00 12.421.959,00 11.579.834,89 3.814.479,31 2.818.000,00 1.090.000,00 Cash Balance 23.103.267,09 27.278.639,98 20.379.904,33 28.412.741,24 26.375.277,75 33.063.666,23 39.092.459,02 42.947.166,11 1 Excludes Outstanding Commitments 17 Global Tax Program FY24 Annual Progress Report SECO SDTF TF072930 (in US$) - DRM Pillar Donors FY2018 - 2021 FY 2022 FY 2023 FY 2024 FY 2025 Contributions 5.944.163,96 1.962.922,57 Disbursements 2.484.047,12 743.685,41 1.506.737,90 1.618.856,28 1.469.184,83 Cash Balance 3.460.116,84 4.679.354,00 3.172.616,10 1.553.759,82 84.574,99 Netherlands SDTF TF073303 (in US$) - DRM Pillar Donors FY2018 - 2021 FY 2022 FY 2023 FY 2024 Contributions 2.750.000,00 2.150.000,00 2.100.000,00 Disbursements 1.602.612,50 1.045.585,61 2.139.705,88 1.475.508,60 Cash Balance 1.147.387,50 2.251.801,89 2.212.096,01 736.587,41 18 Global Tax Program FY24 Annual Progress Report IV. Results monitoring at Program level A. Aggregated results at Program level 24. Since its inception, the GTP has been instrumental in strengthening the Bank’s engagement with au- thorities and has acted as a catalyst for reform actions aimed at enhancing DRM efforts. This has been accomplished through a combination of technical assistance and advisory services, which have pro- vided countries with evidence-based policy recommendations, capacity building, training and training materials, and country assessments etc. A key achievement of the GTP is that analytics and policy rec- ommendations delivered by its projects have informed the design and implementation of 27 DRM-re- lated lending operations, totaling over US$ 7.67 billion. (For more details see Map 3 at the end of this section and Annex 3). 25. In FY24 alone, seven new lending operations were approved by the Bank Board in Benin, Seychelles, Nigeria, Ecuador, Saint Lucia, Armenia, and North Macedonia. Analytics and technical assistance from GTP projects have been used as inputs to inform the design of all these operations. For instance, in June 2024, the WB approved two significant operations for Nigeria: $1.5 billion for the Nigeria Reforms for Economic Stabilization to Enable Transformation (RESET) Development Policy Financing Program (DPF) and $750 million for the Nigeria Accelerating Resource Mobilization Reforms (ARMOR) Pro- gram-for-Results (PforR). This combined $2.25 billion package will provide immediate financial and technical support to Nigeria’s urgent efforts to stabilize the economy and enhance support for the poor and most economically vulnerable. Additionally, it supports Nigeria’s multi-year initiative to increase non-oil revenues and safeguard oil revenues, promoting fiscal sustainability and ensuring sufficient resources to deliver quality public services. 26. Aggregated results at the program level indicate that since the program’s inception, a total of 54 coun- tries (including 23 countries with a tax-to-GDP ratio below 15%) have implemented tax reform recom- mendations delivered by GTP projects. Among these countries, 38 have enacted legal changes through the introduction of new laws or amendments to existing laws/regulations approved by their Parlia- ments. Additionally, 38 countries have adopted best practices, standards, and procedures to strength- en their tax and/or customs administration authorities based on recommendations from GTP-funded activities (see Table 3). For example, the international taxation program has supported 25 countries in implementing reforms to align with international best practices, thereby protecting the tax base and promoting tax transparency. 19 Global Tax Program FY24 Annual Progress Report Table 3. Number of countries that have implemented reform recommendations since Program’s inception Total N Indicator FY19 FY20 FY21 FY22 FY23 FY24 Results Cumulated number of countries that implemented reform recommendations (enact I.1 7 7 4 9 4 7 38 new laws or amend existing laws/regulations) since Program’s inception Number of countries that have implemented reform recommendations (enact new I.2 7 9 7 13 10 11 NA laws or amend existing laws/regulations) in FY Cumulated number of countries that adopted recommendations to improve proce- I.3 1 8 8 2 7 11 37 dures/practices/standards since Program’s inception Number of countries that adopted recommendations to improve procedures/prac- I.4 1 8 13 10 11 19 NA tices/standards in FY Notes: 1. Cumulated results: a country is only counted once, regardless of the number of fiscal years in which it has implemented or endorsed multiple recommendations. 2. Endorsement: this signifies a commitment by the respective governments to implement recommended reforms. 27. As shown in Table 4 below, the program’s performance is strong, as evidenced by the achievement rates of inception-to-date targets for key aggregated standard indicators. As of June 2024, the average achievement rate of standard indicators stood at 107%. Most output indicators have exceeded expec- tations, with 8 out of 9 indicators surpassing their inception-to-date targets. At the outcome level, the inception-to-date targets of indicator “Number of recommendations to improve procedures/practices/ standards adopted” stands at 98%. For the indicator measuring the number of recommendations to in- form government’s policy or strategy (laws and regulations) that have been endorsed, the achievement stands at 90%. Table 4. Number of outputs and outcomes achieved since Program’s inception Aggregated Results Framework - Global Tax Program FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Total targets Achievement Total Results date targets Inception to Inception to date results Standard Indicators Target Target Target Target Target Target Target rate % Result Result Result Result Result Result Result WINDOW 1 OUTPUTS Number of new modules/tools/databases/ A.1 0 0 4 3 10 10 7 12 2 3 4 9 13 18 77 55 40 55 138% methodologies/trainning materials developed Number of documents, reports, studies, notes, A.2 0 0 2 3 4 1 9 6 9 9 5 9 6 10 37 38 35 38 109% guidelines, prepared Number of workshops/ policy dialogues/ consul- A.3 0 0 0 0 1 1 9 7 10 10 4 3 5 6 32 27 29 27 93% tations / Global advocacy activities conducted WINDOW 2 OUTCOMES Number of reform recommendations (laws/ B.1 0 2 15 17 19 17 9 21 36 38 32 17 35 19 163 131 146 131 90% regulations) endorsed Number of recommendations to improve proce- B.2 0 0 0 1 5 18 17 10 26 21 27 33 39 29 124 112 114 112 98% dures/practices/standards adopted B.3 Number of reform strategy/action plans adopted 0 0 0 0 6 4 3 1 2 1 6 3 5 3 34 12 22 12 64% OUTPUTS Number of reform recommendations (laws/ B.1.1 0 12 36 44 35 45 46 31 57 46 37 46 49 53 291 277 260 277 107% regulations) proposed Number of recommendations to improve proce- B.2.1 0 4 12 14 26 21 27 37 27 15 27 38 20 13 145 142 139 142 102% dures/practices/standards proposed B.2.3 Number of capacity building events conducted 0 15 19 24 42 37 55 46 82 91 77 121 87 92 405 426 362 426 118% WINDOW 3 OUTPUTS C.1 Number of KM documents developed 0 0 0 0 5 5 6 13 2 3 8 9 15 12 36 42 36 42 117% C.2 Number tools/modules/training materials 0 0 1 2 5 2 0 1 1 2 1 1 11 12 19 20 19 20 105% C.3 Number of policy briefs, articles, blogs prepared 0 0 0 0 0 0 0 2 2 0 1 1 5 6 8 9 8 9 113% 20 Global Tax Program FY24 Annual Progress Report 28. During the period 2018-2024, the GTP projects delivered various regional and country-specific capac- ity-building events, providing training to over 2,500 tax and customs officials across beneficiary coun- tries. These trainings covered a broad spectrum of thematic areas, including international tax issues such as the Pillar 2 framework, transfer pricing, tax transparency, and the exchange of information. Additionally, the programs addressed data analytics and modeling, tax audit and risk assessment tech- niques, impact evaluation, expenditure analysis, fighting tax crimes and money laundering, behavioral science and experimental methods to improve voluntary tax compliance, and tax policy evaluation, among others. Approximately 70 countries have benefited from GTP support, with at least 37 countries receiving country-focused training, and regional trainings that benefited over 18 countries. 29. Enhancing the capacity of beneficiary countries and promoting knowledge exchange has led to sig- nificant skill development and empowered authorities to independently apply new methodologies and conduct advanced analyses. For example, in Malaysia, comprehensive training on tax expenditures has been instrumental in enhancing the ability of officials to prepare tax expenditure statements, contribut- ing to the country’s tax reform agenda. In Peru, the GTP supported the tax administration by building capacity to use tax microsimulation models for personal and corporate income tax, enabling the estima- tion of tax expenditures and the analysis of rationalizing tax incentives. This support, provided through a combination of remote and in-person missions, trained over 20 officials in tax expenditure analysis. Similarly, in Armenia, the GTP’s training on tax microsimulation models helped officials estimate tax expenditures and analyze the impact of rationalizing housing tax incentives. In Uganda, capacity build- ing on illicit financial flows has led to enhanced capabilities to investigate tax evasion, tax crimes, and money laundering, resulting in the recovery of approximately $10.5 million in one year. 21 Global Tax Program FY24 Annual Progress Report Map 3. Active WB loans informed by GTP-funded activities, since 2018 22 Global Tax Program FY24 Annual Progress Report V. FY24 Progress Update 30. In FY24, the GTP has provided support to 70 countries. During the review period, the GTP project teams made significant progress toward meeting the expected results of their projects. Window 1 and Window 3 mapped projects delivered operationally-relevant knowledge ranging from working papers, policy notes, databases, and toolkits, on a wide range of themes such as international taxation, environ- mental taxation, extractive taxation, tax analytics for better policy design and progressivity. Window 2 mapped project teams delivered tax analysis to inform policy and administration reforms and provided country-level technical assistance on a wide range of tax policy and administration themes such as strengthening capacity in international taxation and introducing tax transparency practices; broaden- ing the tax base and enhancing fairness and equity; establishing tax policies that are designed to help green, digital, social transitions and reduce future costs to the economy, environment, and society; and strengthening and modernizing tax and customs administration. By the end of FY24, 22 activities in the portfolio were completed, with all activities under Window 3 successfully completed as planned. As FY25 commenced, 31 activities are active under Window 1 and Window 2. A. Window 1 - Global Tax Activities and Global Public Goods 31. GTP activities under the Development of Public Goods Window currently represent 8 percent of the total GTP Portfolio allocations. As of now, the total allocations in this window have nearly reached US$6 million. For FY24, the planned budget was US$767K, with expenditures amounting to US$ 733K, resulting in a 96% execution rate. 32. Under this window, the GTP project teams continue to enhance the ability of tax authorities to apply international tax practices, such as the implementation framework of Pillar two, and to improve the understanding of the effectiveness of tax incentives. The GTP teams have also developed new knowl- edge management papers focused on maximizing revenues from extractive industries in IDA countries and progressivity of tax systems. In the environmental tax project, the team has made progress on new analytical workstreams, such as the CBAM module. The following is a detailed description of the main areas of focus: i. Develop publicly accessible guidance to address current gaps in the effective implementation of international tax policy and support global advocacy activities for developing economies. These activities were carried out under the Toolkits and Research on International Tax project. Since its inception, this project has delivered 20 publications or toolkits, and the team par- ticipated in 17 seminars and international or regional conferences on diverse topics such as transfer pricing, global minimum tax, and digital economy, among others. ii. Develop tools in the form of public goods to help countries to rapidly assess and design green fiscal policy instruments; enhance access to knowledge on the effectiveness of environmental tax reforms for sustaining the recovery and fiscal consolidation; and improve global knowl- edge on the effectiveness of tax incentives. These activities are implemented under the Tax Incentives Reform project and the environmental workstream. This year, the Tax Incentive project successfully completed its activities. The environmental workstream includes two 23 Global Tax Program FY24 Annual Progress Report successfully closed projects, CPAT and Environmental Tax Reforms, as well as the new proj- ect, Quantitative Tools for Environmental Tax Reform Analysis. iii. The OGE-DRM Progressivity & Extractives in IDA project which had two streams of analyt- ical, has successfully completed all expected outputs. The first stream focused on maximizing revenues from extractive industries in IDA countries, while the second stream focused on the progressivity of tax systems. iv. In FY24, two activities were launched. The first activity aims to build a core knowledge base on digital tax transformation and develop the capacity to train tax administrations in leading digital transformation processes, benefiting both tax administration and Ministry of Finance officials. The second activity is expected to deepen the knowledge base underpinning tax an- alytics by increasing accessibility to high-quality revenue data and streamlining tax potential analysis. 33. During the review period, the International Tax project focused strongly on the Global Minimum Tax (GMT). The team engaged in four global advocacy activities for the implementation of the GMT, in collaboration with ADB, OECD, IDB and ATAF. These seminars targeted countries in Asia, Africa and Latin America. Over 200 officials from 70 countries received in-person capacity building. Addi- tionally, the team released two new modules on the e-learning course on Transfer Pricing Learning Tool: Comparability Analysis and Transfer Pricing of Services. In coordination with the Pacific Islands Forum (PIF), the team also published a desk review of Pacific Island Forum countries included in the European Union’s list of non-cooperative jurisdictions for tax purposes (EU list). This output served to prepare an action plan for enhancing the overall implementation of the international tax standards in these countries and gain a better understanding of their technical assistance needs. The report outlines the main actions each country must undertake to strengthen its international tax system, in accordance with the challenges identified by the EU. 34. The Tax Incentive project team continues to develop global knowledge and actively engages in several external events for its dissemination. For instance, they shared international trends and fiscal costs of tax incentives, provided policy options for reform, and discussed the Bank’s global support for tax ex- penditures reform at the Economic Commission for Latin America and the Caribbean (ECLAC) work- shop in Mexico City in November 2023. The team also provided capacity building to governments in the Asia-Pacific region to conduct tax expenditure analysis during regional workshop organized by the Addis Tax Initiative in collaboration with Council on Economic Policies and German Institute of Development and Sustainability in Manila and Nepal. Another key output delivered by this team is the Tax Expenditure Manual, which offers comprehensive guidance on the identification, measurement, reporting, and evaluation of tax expenditures, as well as common methodology for defining tax incen- tives. 35. Under the environmental workstream, the team has done substantial data upgrades in CPAT, including the addition of 18 countries7 in the distribution module, energy balances are being updated to increase data accuracy and country coverage thanks to a new database purchased (Enerdata), calibration of the Variable Renewable Energy learning rates with country- or region-specific values based on the Future Technology Transformation (FTT) model. Further updates also include the updates of international 7 Albania (ALB), Armenia (ARM), Bosnia and Herzegovina (BIH), Cape Verde (CPV), Georgia (GEO), The Gambia (GMB), Honduras (HND) (update to older but better-disaggregated survey), Japan (JPN), Cambodia (KHM), Moldova (MDA), Montenegro (MNE), Mauritania (MRT), Senegal (SEN), Tanzania (TZA), Uganda (UGA), Vietnam (VNM) (update from 2016 to 2018), Kosovo (XKX), and South Africa (ZAF). 24 Global Tax Program FY24 Annual Progress Report price forecasts, domestic prices, NDCs, WEO data and GHG emissions data. Beyond data upgrades, the team has performed methodological changes in the tool, such as the inclusion of the Total Carbon Pricing (TCP) metric, covering around 180 countries. The team has ensured these updates, alongside methodological changes, were accordingly reflected in the WB documentation. For example, the latter now reflects a recent change in the disaggregation of prices components in the IMF’s Global Energy Subsidies Dataset and in the resulting price forecasting algorithm in CPAT, and the inclusion of meth- ane tax. The team is also engaged in new analytical workstreams. Major progress has been made on the CBAM module (i.e., analyzing the product coverage on the latest version of the CBAM regulation, gathering trading data, considering 2011-2022, and calculating emissions intensities using the GTAP- v11a database). The integration of CPAT with the road passenger FTT model for the PFR in Georgia has enabled the assessment of carbon tax effectiveness in the transport sector. Furthermore, a simplified version of the CPAT mitigation module is now available in Python to facilitate model connectivity. 36. In parallel, the MINDSET model, which assesses the fiscal, social, and economic impacts of climate change policies, currently covers 120 economic sectors in 164 countries. It has been used in over 20 country engagements and global publications, providing detailed sectoral and employment distribu- tional effects. Recent applications include the Indonesia Fiscal Policy PASA (P179625) and the Bosnia and Herzegovina Country Economic Memorandum. The World Bank also featured MINDSET’s sec- toral and distributional employment results in its 2024 report on the political economy of mitigation policies. MINDSET has helped mainstream jobs, distributional and sectoral diagnostics of climate-fis- cal policy scenarios into core WB core diagnostics, such as CCDRs, CEMs, and general ASA. 37. The environmental tax team has also made progress in benchmarking the growth impacts of environ- mental versus conventional taxes. Preliminary estimations of fiscal multipliers for environmental taxes and spending are available, with a paper on the methodology and results in preparation. The TCP 2.0 methodology has been applied in four countries, with workshops and reports scheduled for dissemina- tion of key results. These efforts underscore the team’s commitment to advancing climate policy tools and providing comprehensive policy advice. 38. During this period, the team working on the extractive industries finalized the five papers, which went through the WB’s Quality Enhancement Review (QER) process. The following three papers have been published: i. Maximizing Gas Production and Government Take in the Era of Energy Transition: The Impact of Country Political Risk on Field Size; ii. Promoting Investment Incentives by International Financial Institutions: The Case of Fostering Natural Gas Investments in Developing Countries; and iii. Natural Resources, State Ownership, and Economic Development. Published as Working Paper by the Australian National University. 39. Under the progressivity stream, two papers were finalized. The first paper titled “Personal Income Tax Progressivity Across the World: A Simplified Modeling Approach”, utilizes cross-country income distribution data to estimate the degree of personal income tax (PIT) progressivity and redistribution in a sample of 148 countries. The second paper, “VAT Rate Structures in Theory and Practice”, explores the distributional impacts of exemptions in value-added tax (VAT) systems, with a particular focus on OECD countries where reduced rates feature prevalent. 40. The Boost Revenue project, launched in January 2024, focused on developing new revenue platforms in countries undergoing public finance reviews. The aim was to ensure the availability of data for analysis and to enhance institutional ownership and capacity through these core diagnostics. A total of seven datasets were created, including in countries where data had previously been scarce, such as 25 Global Tax Program FY24 Annual Progress Report the Central African Republic, Eswatini, Zimbabwe and Burundi. Some of these datasets have been instrumental in informing trend and peer analysis of DRM issues in countries with traditionally low data availability and helped influence policy dialogue around data quality by identifying discrepancies between revenue sources (eg. Central African Republic). 41. Currently under Window 1, three activities are being implemented. By the end of FY24, the OGE- DRM Progressivity & Extractives in IDA, Toolkits & Research on Intl Tax and Tax Incentives Reform successfully completed their activities. For more details on Window 1 activities at the project level, please refer to the GTP FY24 Project Cards report. Table 5. Key Aggregated Results Under Window 1 WINDOW 1: Global tax activities and global public goods Project Project Cumulated Cumulated Inception Inception Total Total Standard Indicators Projects target results Results details FY24 targets results to date to date targets results FY24 FY24 FY24 FY24 targets results 1. New modules on the e-learning course on 1.3 Toolkits & Transfer Pricing Learning Tool were released 0 1 Research on Intl in English: Module 15 (comparability analy- sis) and Module 16 (TP of services) 1. Global Corporate Tax Incentives Dash- 1.5 Tax Incentives board based on a global database of corpo- 1 1 Reform rate tax incentives of about 40 economies tracked over the period 2009-2020 1. TCP introduced in CPAT, 2. Module on Number of new tax-induced innovation, 3. Module on A.1 modules/tools/ tax rebates for pollution capture, 4. BCA 13 18 40 55 77 55 databases developed 1.10 Quantitative dahsboard , 5. Module for energy cost curves Tools for Environ- developed, 6-8 Cutting-edge analytical inno- 6 8 mental Tax Reform vations have been implemented to improve Analysis the WBG’s diagnostic capacity on carbon pricing revenue collection, the economic and social effects of labor market transitions, and of climate shocks. 7 new revenue BOOST datasets for Albania, Burundi, Central African Republic, Eswatini, 1.11 Revenue BOOST 6 8 Mongolia, Serbia, and Zimbabwe were devel- oped. 8. module to estimate tax potential 1. Desktop Review: Analysis of The Pacific 1.3 Toolkits & 2 2 Islands Forum Members included in the EU Research on Intl List of Non-Cooperative Jurisdictions, "Two papers: Personal Income Tax 1.9 OGE-DRM Progres- Progressivity Across the World: A Simplified Number of documents, sivity & Extractives 2 2 Modeling Approach and reports, studies, notes, in IDA A.2 VAT Rate Structures in Theory and Practic" 6 10 35 38 37 38 guidelines, training materials prepared 1-2. TCP how to note and methodological 1.10 Quantitative updates in the WB documentation. 3-6. Tools for Environ- MINDSET has been used in four published 2 6 mental Tax Reform country pilots or policy reports (Cambodia Analysis CCDR, Bosnia and Herzegovina CEM, and two reports). The project team participated in four semi- Number of workshops/ 1.3 Toolkits & 3 4 nars focused on the Global Minimum Tax and policy dialogues/ Research on Intl International Taxation. A.3 consultations / Global 5 6 29 27 32 27 advocacy activities The project team conducted to workshops 1.5 Tax incentives conducted 2 2 to present the framework for reform in Reform Kazakhstan and Malaysia 26 Global Tax Program FY24 Annual Progress Report B. Window 2 - Country-level Activities 42. GTP activities under Window 2, “Country Level Activities”, currently represent 88 percent of the total GTP resources. The total allocations for this window have reached US$68.7 million, which includes thematic contributions to the MDTF. For FY24, the planned budget was US$15.8 million, and as of FY24-end, the execution rate stands at 82%, with expenditures amounting to US$13 million. 43. In FY24, GTP project teams have provided technical assistance to governments in 70 developing countries. To measure progress at the program level, five key standard indicators are employed. At the outcome level, two indicators are particularly important: “Number of endorsed reform recommen- dations” and “Number of adopted reform recommendations to improve procedures, practices, and standards.” These indicators are essential for assessing the influence of GTP-supported projects on government decisions related to tax policy and administration reforms. At the output level, three indi- cators are used to evaluate the effective implementation of activities, the delivery of key analyses and diagnostics, and the provision of capacity-building training for tax officials. These three indicators are: “Number of proposed reform recommendations,” “Number of proposed recommendations to improve procedures, practices, and standards,” and “Number of conducted capacity-building events. 44. By the close of this fiscal year, GTP has not only met but also surpassed the inception-to-date targets for most of the key aggregated standard indicators at the program level. This achievement demon- strates that the projects are progressing well towards their objectives and that GTP’s initiatives are sig- nificantly impacting tax policy and reforms on a global scale. Detailed examples of the results achieved during this period are provided below. Strengthening capacity of tax authorities on international tax issues 45. In FY24, 23 countries received technical assistance on international tax issues8. During this period, eight countries adopted reform recommendations, with four implementing the necessary legal changes to move forward. For example, Eswatini enacted new transfer pricing legislation in October 2023, with further amendments effective in July 2024 (see Box 1 for more details). The Seychelles government passed two WB-advised regulations: (a) Business Tax (Related Party Dealings) Regulations, 2023; and (b) Business Tax (Transfer Pricing Documentation) Regulations. These require MNEs operating in Seychelles to submit a transfer pricing information schedule with annual tax returns and prepare doc- umentation for the tax authority upon request, aiding in identifying tax revenue risks. Georgia adopted mutual agreement procedure (MAP) regulations under tax treaties, as advised by the WB team. Costa Rica incorporated bilateral tax treaty negotiation recommendations into their guidelines, adopted by the Ministry of Finance and shared with relevant agencies. 8 Cabo Verde, Cambodia, Cameroon, Costa Rica, Côte d’Ivoire, Ecuador, Eswatini, Georgia, Honduras, Jamaica, Lao, Lebanon, Lesotho, Papua New Guinea, Paraguay, Peru, Philippines, Rwanda, Saint Lucia, Seychelles, Suriname, Uganda, and Ukraine. 27 Global Tax Program FY24 Annual Progress Report Box 1: New Transfer Pricing Legislation in Eswatini In a landmark move, Eswatini has enacted a comprehensive transfer pricing (TP) legislation in October 2023, set to take effect from 1 July 2024. This pivotal development is the result of the WB’s advisory efforts, in collaboration with the Eswatini Revenue Service (ERS) and the African Tax Administration Forum (ATAF). The International Tax team’s recommendations have catalyzed substantial reforms in TP and international tax regulations, paving the way for a more robust and transparent tax framework. These reforms are set to enhance tax certainty for authorities and taxpayers alike, while simultaneously fostering equitable trade and investment. Key Features of the New TP Legislation: • Arm’s-Length Principle Defined: The legislation introduces a clear definition of the arm’s-length principle, aligning Eswatini with international standards for transactions between independent enterprises. • Standard TP Methods: It prescribes the use of five standard TP methods, including the Comparable Uncontrolled Price, Resale Price, Cost- Plus, Transactional Net Margin, and Transactional Profit Split methods. • Alternative Methods: In scenarios where standard methods are inapplicable, the legislation allows for alternative methods, subject to the Commissioner’s approval, ensuring arm’s-length results. • Documentation Requirements: Taxpayers are now required to maintain comprehensive TP documentation, enhancing transparency and com- pliance. The introduction of the TP legislation marks a significant stride for Eswatini, establishing a dedicated TP regime where previously only broad anti-avoidance provisions applied. This strategic move is expected to enhance Eswatini’s fiscal framework, ensuring equitable taxation and fos- tering economic growth. By the Numbers: • In 2022, Tax Inspectors Without Borders (TIWB) reported that joint workshops with ATAF, the OECD, and the WBG led to increased tax assessments of USD 3.9 billion and tax revenue of USD 1.7 billion in partner jurisdictions. • ATAF reported that TP support over the last 6 years has resulted in an additional USD 1.3 billion in revenue for African countries, with the World Bank being a key partner since 2016. 46. In Papua New Guinea, the international tax team conducted a capacity-building workshop on VAT for digital services. The objective was to support the Internal Revenue Commission (IRC) in preparing for the introduction of GST on cross-border digital services. The technical assistance was guided by the Asia-Pacific VAT Digital Toolkit, published by the WB in collaboration with the OECD and the ADB, with support from the GTP. The team will continue working with the IRC to develop a concept note, assist with draft legislation, and provide capacity building on operational aspects as PNG moves towards implementation. 47. The international tax team also recommended to the government of Jamaica reform its VAT law to apply VAT to digital services to consumers in Jamaica, in line with international standards. This rec- ommendation was part of a broader technical assistance on VAT and excise reform provided to the Jamaican authorities in November 2023. 48. In Peru, the team provided policy advice on the draft bill for the implementation of VAT to cross-border services in June 2024. Collaborating with the OECD, the team reviewed the updated draft legislation on VAT for digital services and offered recommendations to align it with best practices. This legislation is expected to pass by August 2024, as legislative powers on this topic were granted to the Executive Branch in July. The team also assisted in drafting the provision for the law on legislative power in related to this topic. 28 Global Tax Program FY24 Annual Progress Report Enhancing the capacity to tackle tax evasion and tax crimes 49. The EAC Tax Evasion team delivered the third regional workshop to strengthen the capacity to inves- tigate tax crimes and money laundering in Nairobi, which included participants from Kenya, Uganda, Rwanda, Burundi, Tanzania, and South Sudan. Revenue authorities from all six countries benefited through learning skills to detect, investigate and prosecute tax crimes and money laundering. The workshop was accompanied by a manual on the investigation of tax crimes and ML. Participants also spontaneously initiated an informal network of tax investigators for the exchange of information and practices. For more details on this activity and the project’s results please refer to the GTP FY24 Proj- ect Cards report. 50. To date, the National Risk Assessment (NRA) module has been delivered in 17 countries (El Salvador, Ethiopia, Guatemala, Honduras, Kenya, Panama, Uganda, Cambodia, Uzbekistan, Ecuador, Botswana, Zambia, Zimbabwe, Burundi, Laos, Philippines and Rwanda). Nine countries have completed their reports and action plans, while eight are in the data gathering/report drafting phase. Policy actions have been undertaken in Panama, El Salvador, and Honduras. All these countries have drafted beneficial ownership laws which are now waiting to be approved. In the case of Honduras, the BO law has been taken as a prior action under an ongoing DPL (P179909). Ethiopia and Ecuador have adopted action plans to address risks identified. The team has also delivered four whole of government approach workshops, including two regional workshops in LCR. The team and the OECD’s Tax Inspectors with- out Boarders identified synergies between the NRA tool and the OECD’s maturity model, leading to a pilot in Zimbabwe. Additionally, the OECD has recently published a manual on developing strategies to combat tax crimes, and the WB tool was prominently featured in the publication, as the logical first step for the preparation of a strategy. Informing and enhancing capacities for implementing comprehensive tax policy and admin- istration reforms 51. In Cameroon, project team’s recommendations for boosting tax revenue mobilization were incorpo- rated into the Cameroon Public Finance Review (PFR) and presented during a workshop. The team is currently preparing the Second Growth and Inclusion DPF (P180017), which includes a prior action on tax administration informed by the GTP activities. 52. In Nigeria, the team continues to support DRM reforms, including those under the ARMOR and RE- SET Programs. These reforms, which the government has committed to implementing over the next four years, are based on GTP-supported analytical work. Additionally, the new administration has es- tablished the Presidential Committee on Fiscal and Tax Reforms (PCFTR) to overhaul the tax system within a short timeframe. The PCFTR is rewriting Nigeria’s tax laws, aiming for legislative approval by December 2024. GTP support is crucial in providing timely policy guidance, knowledge, analysis, and capacity to make informed decisions. The ARMOR Program assessed the institutional capacity and stakeholder risks as substantial. To mitigate these risks, ongoing Bank-executed capacity building is integrated into the project’s design. 53. In Tajikistan, the continuous support provided by the Bank played a key role in achieving three targets (DLRs) in the PforR Operation, notably designing and automating a risk management framework for audit (DLI 4) and designing and automating a risk-based verification mechanism for VAT refunds (DLI 5). GTP-funded activities are building local capacities and helping the Tax Committee (TC) meet its tar- gets in the PforR operation. Tax revenues have increased despite the drop-in tax rates (by 40% in 2022 and early data for 2023 reflect a similar pattern). Over 87 e-services are now operational. Risk manage- 29 Global Tax Program FY24 Annual Progress Report ment and automation is now embedded in operations. On-going support by the Bank team has helped the TC draft a tax expenditure report and initiate the cost-benefit analysis of tax incentives (DLI 6). 54. In Kosovo, strategies to combat informality were further developed, including the completion of a concept for an innovative VAT lottery and preparations for the platform’s development. A tax lottery working group was established, and an agreement was reached with the GiZ to co-finance the plat- form’s development. The Bank team provided advice throughout the entire process. An advisory firm was successfully procured in December 2023, developed technical inputs for the lottery platform, which were shared with TAK, refined, and endorsed. GIZ is currently procuring a local firm to develop the platform within TAK’s IT system (see Box 2 for more details). Box 2: Enhancing Tax Compliance in Kosovo: The Role of an Innovative VAT Lottery in Reducing Informality and Boosting Revenue Informality remains a pressing challenge in Kosovo. While previous tax gap assessments have shown reductions in the tax gap across main tax types (personal income tax, value-added tax (VAT), and corporate income tax) over the past decade, combating informality continues to be a high priority. Addressing the VAT GAP in particular is a high priority given its large potential revenue impact and its link to other evasive activities (e.g., envelope wages). A priority activity of the GTP financed technical assistance on Improving the quality and coverage of taxpayer registration is therefore to support the design and development of an innovative VAT lottery. Such an innovative VAT lottery is likely to have a large positive impact on revenues. The higher revenues would come from several factors: incentives for businesses to more accurately report economic activity (and consumers to push for this through their own incentives), better data for enforcement of tax compliance, and increased tax morale. The expected end results include greater reductions in the VAT and other tax gaps, and a shifting of the societal dialogue on taxpayer compliance and informality in Kosovo. Unlike traditional tax lotteries – where consumers collect receipts and receive some incentive to deliver these to the tax administration – the planned VAT lottery in Kosovo will provide incentives for both businesses and consumers. There will be recurring prizes to consumers as well as prizes to business that issue the winning receipt. The use of state-of-the-art digital platform technology will make it easy for consumers and businesses to participate and reduce the administrative burden of handling and processing paper receipts. Evidence from other countries supports the notion that revenue impacts of a well-designed tax lottery can be substantial. In Latvia, for example, the VAT gap was reduced from 25 percent in 2016 to 8 percent in 2020, and much of this reduction was understood to be due to the lottery exercise carried out during this period. In Brazil, a lottery implemented in the State of São Paulo was estimated to have led to a 21% increase in reported firm sales over 4 years and a 9.3% increase in revenues overall1. Activities in support of the Kosovo VAT lottery include the following: i. Development of a concept and design blueprint for the lottery ii. Technical input for the terms of reference of a local development firm iii. Advice to both the local developer and TAK during the development of the lottery platform and its integration with tax administration IT systems iv. Advice on the development of a communications strategy to support the lottery roll-out v. Development of a monitoring and evaluation strategy, including an experimental roll-out to identify the causal impacts of lottery activ- ities on taxpayer behavior and revenue collection. The activities are carried out in close collaboration with a designated TAK working group and in partnership with the German International Development Agency (GiZ). The World Bank team has supported the development of the concept and design of the lottery, advises on the implementation and the monitoring and evaluation, while GiZ is responsible for the financing of the platform development through a local firm. 1 The quasi-experimental study, conducted by Joana Naritomi, can be found here: https://www.aeaweb.org/articles?id=10.1257/aer.20160658 30 Global Tax Program FY24 Annual Progress Report 55. In Armenia, the team focused on enhancing institutional and organizational capacity for tax and cus- toms administration. A comprehensive training program was conducted on using artificial intelligence (AI) and machine learning (ML) tools in risk assessment models, introducing international best prac- tices and applying chatbots. Over 30 tax and customs staff were trained. Currently, the State Revenue Committee is implementing a ML and AI tool in tax risk management systems, as well as chatbot system in self-declaration system with the support of the WB Fourth Public Sector Modernization Project (PSMP-4) lending project. Additionally, detailed taxpayer manuals were developed for the new self-declaration regulations and annual taxpayer satisfaction surveys were conducted to improve engagement and trust. The project also supported behavioral trials to encourage non-cash payments and provided recommendations for data quality assessment and the incorporation of machine learning in online services. Satisfaction level for the e-services provided by the SRC has increased by 5% over the baseline, according to taxpayer survey reports. 56. In Cambodia, the project team drafted the Revenue Mobilization Strategy (RMS3), including policy and administration recommendations. Approval of the strategy is expected during the calendar year 2024. Additionally, the General Department of Policy (GDP) adopted the PIT framework, which in- troduces a comprehensive personal income tax, broaden the pay-as-you-earn (PAYE) tax base, and streamline allowances. This is an important step towards the introduction of the PIT. 57. In Papua New Guinea, the team supported the Internal Revenue Commission (IRC) in institutionaliz- ing the 2024 Compliance Improvement Plan in the annual work planning and performance manage- ment. Following the adoption of the CIP, the Compliance Risk Management team has been working with various divisions on audit and other compliance activities, using the risk assessment results pro- duced as part of the CIP. Furthermore, the IRC adopted the Audit Improvement Strategy and the Key Performance Indicators, which were also developed with WB’s assistance. This is the first-ever KPI document for the IRC that would help to focus the IRC efforts on compliance improvement activities. 58. In Vietnam, the National Assembly issued a Resolution in November 2023 that adopted the Global Minimum Tax, specifically the Qualifying Domestic Minimum Top-up Tax that would help to secure the domestic corporate income tax base for Vietnam under the GMT environment. The Resolution came into effect on 1 January 2024. The WB team provided substantial support to the Viet Nam Na- tional Assembly on the GMT topic over the fiscal year. 59. In the Caribbean region, the team finalized the tax assessment and associated recommendations for St. Lucia and Dominica, and Grenada is nearing completion. Additional assessment for St. Vincent is well-advanced. Work is on-track and all country reports will likely be completed by December 2024. Plans for engagement with the relevant authorities will likely take place in early 2025 once reports are completed and recommendations finalized. This analytical work will inform ongoing DPFs operations and policy dialogues in the Caribbean. 60. In the Central America region, the analytical work for all seven CADR countries has been finalized, including the tax revenue and debt benchmarking. These outputs will guide the policy dialogue on debt sustainability and domestic revenue mobilization in the region. Currently, WB country economists are using the insights in the lending and analytical engagements. The team also started working on devel- oping roadmaps for environmental tax reform, with a focus on carbon tax in Guatemala, El Salvador, and Costa Rica. The benchmark analysis was completed, and the report summarizing the findings and recommendations for implementing environmental tax reforms was presented and discussed with sev- 31 Global Tax Program FY24 Annual Progress Report eral stakeholders in all three countries to get their inputs. Feedback from WB colleagues from different practices were also received, and the team is working on incorporating the suggested changes in the final report. Addressing ineffective tax incentives and mobilizing resources from undertaxed income tax bases such as property taxes 61. The tax incentives project team have supported governments from several countries, such as Sri Lanka, Senegal, Cambodia, Armenia, Kosovo, Kazakhstan, Philippines, and Morocco, in pursuing tax incen- tives reforms. For instance, in Sri Lanka the team is supporting the government to comply with their commitments under the Resilience, Stability and Economic Turnaround (RESET) Development Policy Operation (DPO). Also, they have supported the drafting of the Public Finance Review revenue chapter in which tax incentives reform will be one of the key issues. The team has also supported Kazakhstan to re-write their tax code and reform their tax incentives. In Armenia, the team developed a corporate income tax microsimulation model, which will feed into Armenia’s Public Finance Review and will be used to provide policy recommendations related to tax incentives reform. For more details on this activity and the project’s results please refer to the GTP FY24 Project Cards report. 62. On property taxation, analytical work supported by GTP has significantly informed policy dialogue and Zambia’s efforts to reform its intergovernmental fiscal transfer system. The two reports, Diagnostic Report and Consolidated Revenue Enhancement Plans, have been used by the government of Zambia to review of the 2017 Intergovernmental Fiscal Architecture (IFA). This review aims to strengthen the focus on own source revenue (OSR) mobilization as part of Zambia’s DRM efforts, including a greater emphasis on the digitalization of OSR. Additionally, the insights gained have influenced the restructuring of the Zambia Devolution Support Program (ZDSP), a US$210 million concessional IDA lending operation, by introducing new Disbursement Linked Indicators (DLIs) to incentivize improved property tax collection and digitalization efforts. (see Box 3 for more details on this activity). 63. In Mauritania, the project team launched activities including the fiscal incidence analysis, a tax revenue mobilization assessment and a property tax collection study. The property tax collection study offered a detailed analysis of the potential for increasing property tax revenues, identifying high-potential areas in Nouakchott and suggesting administrative and tax policy measures. The technical assistance led to two outcomes: (i) the creation of an action plan to enhance land tax revenues, and (ii) the issuance of Arrêté No 000252 on March 5, 2024, which set the tax base and rate for unbuilt lands. Although the tax on unbuilt land was introduced by the tax code in 2022, the lack of defined tax base and rate had delayed collection efforts. The study recommended and informed the definition of these parameters, estimating potential revenues. Using data from key residential areas in Nouakchott—Tevragh Zeina, Ksar, Teyarett, and the former airport residential area—the expected revenues from taxing unbuilt lands are projected at MRU 85 million (USD 2.1 million) in 2024, with an average of MRU 42 million (USD 1.1 million) per year starting in 2025. This technical assistance will support the implementation of reforms under the Mauritania Fiscal Management and Resilience standalone Development Policy Finance (DPF) (P179263). Additionally, the analytical studies prepared will provide a reform agenda that for the next DPF series starting in FY25. 32 Global Tax Program FY24 Annual Progress Report Box 3: Zambia’s journey to enhance is property tax system In early 2023, the Government of the Republic of Zambia (GRZ) embarked on a transformative journey to enhance its property tax system with the support of the Strengthening Local Revenue Policies and Practices technical assistance supported by GTP. This initiative was structured in two impactful phases that have set the stage for significant fiscal reforms in Zambia. Phase One: Diagnostic Assessment The first phase of the TA focused on the preparation of a comprehensive Diagnostic Assessment Report on Property Tax Policy and Administra- tion. Delivered to the GRZ in April 2022, this report provided a detailed analysis of the existing property tax framework and identified key areas for improvement. Recognizing the importance of these findings, the GRZ established a Multi-Agency Technical Committee on Property Tax Policy and Administration to delve deeper into the report’s recommendations. Phase Two: Revenue Enhancement Plans Building on the diagnostic assessment, the second phase of the TA supported the development of Revenue Enhancement Plans (REPs) for 15 municipal councils and 5 city councils. These plans were consolidated into a single, cohesive report, which was presented at a workshop led by the Ministry of Local Government and Rural Development (MLGRD) in March 2024. The workshop facilitated the sharing of key findings and recommendations aimed at boosting property tax revenues. Achievements The analytical work conducted through this TA has had a profound impact on Zambia’s policy dialogue and efforts to reform its intergovernmen- tal fiscal transfer system. The Diagnostic Report and the consolidated REPs have been instrumental in informing the review of the 2017 Inter- governmental Fiscal Architecture (IFA), with a renewed focus on own source revenue (OSR) mobilization and the digitalization of OSR processes. One of the significant outcomes of this project is the ongoing review of the Rating Act of 2018. The analytical work highlighted several gaps in the current legislation that hinder effective revenue mobilization by local authorities. As a result, the Rating Act is being revised to remove prohibitive clauses and enhance the property tax revenue collection potential of local authorities. Moreover, the insights gained from this project have informed the restructuring of the Zambia Devolution Support Program (ZDSP), a US$210 million concessional IDA lending operation. The ZDSP, which includes a Program-for-Results (PforR) component and an Investment Project Fi- nancing (IPF) component, is now better aligned to incentivize both central and local government agencies to enhance OSR collection, including property tax. The Diagnostic Report has also led to the development of two new Disbursement Linked Indicators (DLIs) under the ZDSP. These DLIs incen- tivize the MLGRD to improve the policy, legal, and administrative environment for OSR mobilization and offer incentives to local authorities for improved OSR collection. The IPF component will provide targeted technical assistance to the MLGRD and local authorities, further supporting these efforts. The restructuring of the ZDSP has expanded its scope to include all 116 councils in Zambia, ensuring that both urban and rural councils benefit from the program. Additionally, the IPF component will offer more robust institutional support to the agencies implementing the DLIs, enhancing the overall effectiveness of the program. 64. In Tunisia, the government introduced a property tax reform informed by analytical work supported by the GTP. The project team working on tax policy advocated for the introduction of a property tax to ad- dress the imbalance between labor and capital taxation in Tunisia. The technical work also emphasized the importance of maintaining accurate property valuations for taxation purposes. Given Tunisia’s weak fiscal cadaster, this led to the introduction of a rule allowing the revision of historical property values based on updated market values. Consequently, the 2023 Budget Law (Article 23) introduced a 0.5% tax on the value of real estate owned by individuals, applicable to properties cumulatively valued above TD 3 million (approximately US$ 900,000). 33 Global Tax Program FY24 Annual Progress Report Health taxes 65. The health tax team has added new engagements in fifteen countries (Burundi, Cabo Verde, Chad, DRC, Georgia, Jamaica, Kenya, Kazakhstan, Mauritania, Mongolia, Romania, Sri Lanka, Tuvalu, Ukraine, Zimbabwe), and based on World Bank country team’s interest is now providing resources to three new regional Bank-executed projects. 66. Since its inception in 2022, the health tax project has expanded its work to over 50 countries, ongoing explorations in several others. Project leverages all of Bank’s engagement vehicles (e.g., prior action in DPOs; providing tobacco excise tax policy analysis in PFRs). In FY24, a notable example of this ap- proach and its success was in North Macedonia. Project team provided an assessment of health taxes as an input to country’s PFR. This led to further work on excise tax policy—included technical assistance, analytics, and policy reform modeling, informing country authorities. The team conducted workshops with the government and produced a comprehensive report with a tobacco and alcohol tax reform sim- ulation model. In October 2023, tobacco reforms were enacted with the support of the Sustainability and Resilience Development Policy Loan (P180587), followed by a dissemination workshop to pro- mote these reforms and foster regional collaboration. These reforms are crucial for North Macedonia’s EU accession compliance by 2030. Gender Equality and Taxation 67. The Gender and Taxation team continued producing analytical work for several countries such as Ethiopia, Tanzania, Rwanda, Morocco, and Brazil. For example, the team presented preliminary find- ings from the gender, informality, and presumptive tax study in Tanzania, which will inform the Tan- zania Country Systematic Diagnostic. Similarly, in Ethiopia, the team revised the paper on gender and presumptive taxation on SMEs to include the latest round of the Ethiopia Socioeconomic Survey 2021/2022. This study informed the Ethiopia Public Finance Review. Additionally, two knowledge notes on tax and customs and tax compliance were published, and the GTP Gender & Tax Talk Series was launched with the first webinar, “Beyond Borders: How Do Tax and Trade Policies Affect Gender Equality?” in November 2023. See Box 4 for more details on key achievements in the reporting period. Box 4: Empowering Women through Tax Reforms: GTP’s Gender and Taxation Initiative Taxation can be a powerful tool to reduce gender gaps by changing incentives and behaviors towards better gender equality outcomes. A well-functioning and progressive tax system can help promote gender equality. However, seemingly neutral tax policies and administration prac- tices can reinforce existing gender disparities when they intersect with structural differences and social norms that perpetuate inequality. There is a notable lack of evidence-based knowledge and granular analysis, particularly in the context of low- and middle-income countries. Since 2021, with the support of the United Kingdom, the GTP has been providing direct policy advice to governments and producing analytical work that leverages the impact of the WB instruments (e.g., lending operations or diagnostic tools). This workstream has also produced global knowledge products that facilitate sex-disaggregated analysis of tax policies. Since its inception, the project has been supporting high-quality operationally relevant research, analytics, and technical support to countries on tax policy reforms and capacity building for tax and customs administrations on incorporating gender equality objectives. In recent years, the country coverage has been expanded to 25 countries, broadening the global evidence on promoting gender equality through the tax system across various tax types and regions. 34 Global Tax Program FY24 Annual Progress Report Examples of the technical assistance provided include policy advisory support on gender analysis of the personal income tax in Morocco and Georgia; property tax in Brazil and Argentina; agricultural land tax in Ethiopia1; tariff policy in Bangladesh; presumptive tax in Ethiopia, Tanzania and Rwanda; and tax compliance in Guinea-Bissau. Additionally, the team supported the provincial revenue authorities in Pakistan to address women’s needs, and contributed with analytical inputs to several PFRs (Cabo Verde, Serbia, Peru, Georgia). For instance, the gender and taxpayer survey in Pakistan’s Khyber Pakhtunkhwa (KP) province is an example of high-quality analytics support to a WB concessional lending operation - the International Development Association (IDA) funded USD$118 million project. The team provided advisory support on how the Bank’s operational lending could promote gender equality in the provincial revenue authorities - through tailoring tax service provision to meet women’s needs, human resource management and investments to recruit and retain women and generating sex-dis- aggregated data. Another example of direct support to authorities is the gender analysis of the PIT system in Morocco, which was presented to the Ministry of Finance and other government authorities as part of a high-level study led by the MoF on increasing female labor participation. The study found that unlike men, women had to go through administrative hurdles to be recognized as the main earner of the household and benefit from tax credits. Women also faced higher disincentives as second earners because of the family-based child tax credits and a deduction for a dependent spouse. The analysis of the differential implications of the personal income tax (PIT) policy on women and men conducted for the Georgia Public Finance Review is an example of high-quality analytics for a core diagnostic that the WB country teams use for policy dialogue. It finds that women may be taxed at a higher rate than men because they are more likely to be in the PIT rather than the sole proprietor tax regime, which is more lightly taxed. The gender and presumptive tax study in Ethiopia, published early in 2024, is another example of analytical work that informed the Public Finance Review and policy dialogue with tax authorities. The study found that the presumptive tax on small and microenterprises has differential impli- cation on women and men because of the sectors are taxed at different rates and there is a lack of a tax-free thresholds for some activities that are predominated by women (such as food and beverage services), making it regressive. In terms of global public goods, the project team has been producing several technical knowledge products on explicit gender bias in taxation, tax compliance, presumptive taxes, and fiscal policies for childcare. For example, in late 2023, the team published a knowledge note to highlight key issues and recommendations for promoting gender equality in tax and customs administrations. More recently, the team published the knowledge note on gender and tax compliance, which discusses why it is important to consider the gender differences in tax compliance and why women’s needs and constraints should be considered to facilitate women’s voluntary tax compliance. There are new knowledge notes in produc- tion that will unpack key gender issues in tax policy, the experience of Colombia’s tax authority in sex-disaggregating tax administrative data, personalized VAT in Brazil, urban property taxes in Argentina, and the presumptive tax on small and microenterprises in Rwanda and Tanzania, and more. 1 This study was produced by the GTP-funded Ethiopia Gender and Taxation project. 68. Currently under Window 2, 27 activities are under implementation. For more details on Window 2 activities at the project level, please refer to the GTP FY24 Project Cards report. 35 Global Tax Program FY24 Annual Progress Report Table 6. Key Aggregated Results Under Window 2 – Outcome Level Aggregated Logical Framework - Global Tax Program WINDOW 2: Country level activities Project Project Cumulated Cumulated Inception Inception Standard Total Total     Projects target results Results details FY24 targets results to date to date Indicators targets results FY24 FY24 FY24 FY24 targets results 2.04 Inter- national Tax 6 5 Seychelles (3); Costa Rica (1), Georgia (1) Program 2.14 NRA Tax Panama, El Salvador, and Honduras (drafted beneficial 4 3 Evasion ownership laws which are now waiting to be approved) Sri Lanka: 1.Raised PIT threshold - Changed the personal relief for resident / non – resident but citizen of Sri Lanka as Rs. 1,200,000/- 2.Raised PIT rates - Changed the personal relief for resident / non – resident but citizen of Sri Lanka as Rs. 1,200,000/- 3.Eliminating CIT incentives including lower rate - Removal of certain 2.17 Tax 10 7 exemptions 4.Increase VAT rate to 15% - VAT rate was incentives increased to 15%. 5.Lower VAT registration threshold to 18 million – VAT threshold lowered to 80 million per annum. 6.Integrate dividend taxation with corporate tax- ation - dividend tax rate increased to 15%. 7.Measure and report tax expenditures – Tax expenditure report was published. 2.22 PNG Target not yet met. The project is expected to end in Number Tax Reform 1 0 June 2025. of reform Assistance  OUTCOMES recommen- B.1 dations 2.25 Cambodia 35 19 146 131 163 131 (laws/reg- Tax Reform Policy framework for excise endorsed and Policy frame- 2 2 ulations) Assistance work for PIT endorsed endorsed Project 2.29 Caribbean: Strengthened Target not met yet. Project has been extended until Tax Policy for 4 0 February 2025. Climate Resil- ient Growth Viet Nam National Assembly issued a Resolution in November 2023 that adopted the Global Minimum Tax, 2.41 Vietnam 0 1 specifically the Qualifying Domestic Minimum Top-up Tax Reform Tax that would help to secure the domestic corporate in- come tax base for Viet Nam under the GMT environment 2.47 Increasing 1. The 2023 Budget Law (article 23) introduced a tax policy ana- 0.5% tax on the value of real estate owned by an 2 1 lytical capacity individual which is cumulative valued above TD 3mio in Tunisia (US$ 900,000). 2.51 Chad Tax 1 0 Target not met. The project closed in June 2024. and Customs 2.52 Ethiopia Two out of the five outcomes were achieved in previous 5 0 Tax Policy fiscal years. 36 Global Tax Program FY24 Annual Progress Report Aggregated Logical Framework - Global Tax Program WINDOW 2: Country level activities Project Project Cumulated Cumulated Inception Inception Standard Total Total     Projects target results Results details FY24 targets results to date to date Indicators targets results FY24 FY24 FY24 FY24 targets results Eswatini (2), Ghana (1), Lesotho (1), Rwanda (1): implementation TP risk assessment model 2.04 Inter- Uganda (1) national Tax 0 6 Note: The total Outcomes achieved by the International Tax Program Program will be counted as 6 at the Program level to avoid any distortions in assessing the progress toward expected targets in FY24end inception to date targets. Burundi, Laos, Philippines, Belize utilize the enhanced 2.14 NRA Tax 2 4 national risk assessment methodology in informing their Evasion approach to fiscal crimes and ML 2.17 Tax Sri Lanka, Kosovo and North Macedonia adopted tax 3 3 incentives expenditures methodology. 2.22 PNG IRC has adopted the Audit Improvement Strategy and the Tax Reform 3 2 Key Performance Indicators Assistance 2.25 Cambodia The team is waiting to confirm the adoption of recom- Tax Reform 3 0 mendations when the government's strategy becomes Assistance public. The project ends by the end of 2024. Project The transition of the tax administration function from the national government of the Philippines to the 2.26 BARMM Bangsamoro Autonomous Region in Muslim Mindanao Tax Reform TA - 2 0 (BARMM) has been extended from 2025 to 2027. As a Philippines result, the establishment of the Bangsamoro Revenue Office has been delayed. 2.27 Cameroon Tax Policy and The project had a low start which has impacted the Revenue Admin. 4 0 achivement of results in FY24. Capacity Development 1. The manual on royalty audits is been used by all auditors. 2. Tax manuals related to individuals’ taxation and reporting of PIT have been adopted. 3. Recommen- 2.31 Tax and dations on the architecture of on-line services to the Customs taxpayers by incorporating ML for the frequently asked Administration 6 4 and more basic technical and procedural questions (ML Number Modernization Q&A assistant) have been adopted. 4. The behavioral of reform in Armenia trials in the Tax Administration for Increasing non-cash  OUTCOMES recommen- transactions in Armenia through targeted notifications B.2 dations has been implemented. 39 29 114 112 124 112 (laws/reg- ulations) 1. Kenya: KRA has adopted an informal sector endorsed strategy, included insights from the engagement in the medium-term revenue strategy (MTRS) and adjusted the 2.32 EFT thresholds for the simplified tax regime. Strategies to 2 2 2. Georgia: GRS has implemented pilots jointly with Improve Tax the World Bank team and has requested support to do Compliance other evaluations of their (quasi-) enforcement policies, illustrating their adoption of the experimentation and behavioral insights frameworks proposed by the project. 2.33 Tax Policy Analysis to Honduras has 1. improved procedures leveraging the Build Capacity 2 2 Shareholders Networks Visualization Tool and 2. updated and Improve practices applying concepts for Data Network Analysis. Equity Chad: Committee established to improve efficiency and oversight of Tax Expenditures Burkina Faso: Government published enhanced tax 2.36 Domestic expenditure evaluation report Revenue Mobi- 4 3 Mali: Strengthened capacity of the mining tax adminis- lization in the trations to assess fraud risks from large firms, stemming Sahel Region from transfer pricing behavior, production and export, revenue under-reporting and assess tax expenditures from mining companies. 2.46 Ghana Tax The team supported the development of Draft Tax Expenditure and Expenditure Administrative Guidelines required under 3 1 Climate Smart Section 5 (3) for implementation of the Tax Incentives Systems Act 2022. These regulations were adopted in 2023. 2.51 Chad Tax By the end of this project, results achieved remained at 1 0 and Customs the output level. 2.53 Sierra Leone MTRS Liberia prepares a comprehensive Tax Expenditure Report 2 1 and Liberia Tax supported by this project (TER) and is published online Expenditures Tax Identification Numbers (TINs) component has been 2.54 Digitizing completed and endorsed by the tax authority, the tax the Libyan Tax- 1 1 authority has followed-up by reaching out to other ation System government agencies to explore collaboration on identity management. 37 Global Tax Program FY24 Annual Progress Report Table 7. Key Aggregated Results Under Window 2 – Output Level Aggregated Logical Framework - Global Tax Program WINDOW 2: Country level activities Project Project Cumulated Cumulated Inception Inception Standard Total Total     Projects target results Results details FY24 targets results to date to date Indicators targets results FY24 FY24 FY24 FY24 targets results 2.04 Inter- Eswatini (3), Rwanda (1), Peru (1), St. Lucia (1), Cabo national Tax 9 13 Verde (2), Ecuador (1), Suriname (1), Uganda (1), Costa Program Rica (2) 2.17 Tax 20 17 Mongolia (1), Sri Lanka (9), Kazakhstan (4), Armenia (3) incentives 2.25 Cambodia Tax Review report on policy and administration Tax Reform 4 4 recommendations for RMS3 which included four strategic Assistance recommendations for the authorities’ consideration (4). Project 2.27 Cameroon Tax Policy and The project had a low start which has impacted the Revenue Admin. 2 0 achivement of results in FY24. Capacity Development 2.33 Tax Policy Analysis to Policy recommendations to Honduras (2) and Ecuador Build Capacity 3 3 Number (1) and Improve of reform Equity OUTPUTS recommen- B.1.1 dations 2.41 Vietnam The latest draft VAT (1) and Excise tax (2) laws have 49 53 260 277 291 277 (laws/reg- 0 2 Tax Reform reflected the recommendations from the WB. ulations) proposed 2.44 Increasing tax policy ana- Policy Note on capital taxation (1) and comprehensive 2 2 lytical capacity tax policy reform agenda proposal (2) in Tunisia Policy advice on the draft bill for a reform on online gam- ing (2); Policy advice on the draft bill for the implementa- tion of VAT to cross-border services (1); Policy advice on transfer pricing legislative framework (3); Policy advice 2.45 Peru Tech- on the draft bills in relation to the OECD's Forum on nical Assistance 8 11 Harmful Tax Practices (FHTP) and Pillar 2 standards (2); on Taxation Policy advice on SME taxation (1); Policy advice on the draft bill of the SEZ framework law (1); Policy advice and assistance to MEF in the estimation of the "Total Carbon Price" of Peru (1) 2.56 Senegal Enhancing A technical Note on the designing an Optimal Petroleum Capacity for 1 1 Fiscal Regime for Senegal (1) Achievement of MTRS Goals 38 Global Tax Program FY24 Annual Progress Report Aggregated Logical Framework - Global Tax Program WINDOW 2: Country level activities Project Project Cumulated Cumulated Inception Inception Standard Total Total     Projects target results Results details FY24 targets results to date to date Indicators targets results FY24 FY24 FY24 FY24 targets results 2.04 Inter- Eswatini (2), Ghana (1), Lesotho (1),Uganda (1), national Tax 5 6 Rwanda (1) Program 2.22 PNG Audit improvement Strategy and the Key Performance Tax Reform 1 2 Indicators proposed Assistance The transition of the tax administration function from the national government of the Philippines to the 2.26 BARMM Bangsamoro Autonomous Region in Muslim Mindanao Tax Reform TA - 3 1 (BARMM) has been extended from 2025 to 2027, Philippines impacting the achivement of certained planned activities of this project. 2.27 Cameroon Number of Tax Policy Report on Business Process Improvement, Process recommen- and Revenue Mapping and Gap Analysis, including recommendations dations to Administration 4 2 (1); Report on Cameroon Tax Administration ICT Capacity OUTPUTS improve Assessment, icnlduing recommendations (1) B.2.1 proce- Development 20 13 139 142 145 142 dures/ activity practices/ 2.31 Tax and standards A report on recommendations on the architecture on-line Customs proposed services to the taxpayers by incorporating ML for the fre- Administration 3 1 quently asked and more basic technical and procedural Modernization questions (ML Q&A assistant). in Armenia 2.36 Domestic Revenue Mobi- Roadmap for additional technical assistance and training 1 1 lization in the needs of the tax administration staff Sahel Region 2.50 Sierra Leone MTRS 1 0 Target not met. The project closed in June 2024. and Liberia Tax Expenditures 2.51 Digitizing the Libyan Tax- 2 0 Target not met. The project closed in June 2024. ation System Aggregated Logical Framework - Global Tax Program WINDOW 2: Country level activities Project Project Cumulated Cumulated Inception Inception Standard Total Total     Projects target results Results details FY24 targets results to date to date Indicators targets results FY24 FY24 FY24 FY24 targets results 2.04 Inter- Capacity building events: Eswatini (2), Rwanda (4), national Tax 6 16 Uganda (1), Cambodia (1), Laos (1), PNG (1), Ecuador Program (1), Peru (1), Paraguay (1), regional workshops (3) 2.05 Tax Reform in 1 0 Output met in previous fiscal year Uzbekistan Workshop to strengthen Kenya and Uganda’s capacity to combat tax crimes and money laundering in the Road 2.08 EAC Tax Construction sector (1). Two-day workshop on the use 1 3 Evasion of open sources to the Uganda Revenue Authority and Kenya Revenue Authority for the investigation of tax evasion (2) Capacity building support on transfer pricing to 83 FIRS 2.15 Nigeria officers (3). Joint WBG-WCO Customs capacity building Tax and Cus- 0 4 Number of workshop on Post Clearance Audits and Authorized toms OUTPUTS capacity Economic Operator status (1) B.3.1 building 87 92 362 426 405 426 events Capacity building of government officials in the Asia conducted and the Pacific region in a workshop jointly organized by India, ADB, and the WB (1).Training on TEs reform in the Regional Technical Workshop on Tax Expenditures orga- 2.17 Tax nized by ECLAC in Mexico City (1). Supported regional 3 5 incentives tax expenditure workshops organized by the Addis Tax Initiative in collaboration with CEP and IDOS in Nepal (1). Capacity building of Kosovo MoF Officials on models for tax expenditure measurement (1). Workshop in Malaysia on tax expenditures in March 2024.(1) 2.22 PNG Tax Reform 1 0 The project will end in June 2025. Assistance 2.25 Cambodia Tax Reform First iteration of the microsimulation tax model woth the 4 1 Assistance General Department of Taxation (1) Project 39 Global Tax Program FY24 Annual Progress Report Aggregated Logical Framework - Global Tax Program WINDOW 2: Country level activities Project Project Cumulated Cumulated Inception Inception Standard Total Total     Projects target results Results details FY24 targets results to date to date Indicators targets results FY24 FY24 FY24 FY24 targets results Workshop to facilitate the dialogue between MFBM and 2.26 BARMM national government counterparts (BIR, DoF, and DBM) Tax Reform TA - 3 1 on the transition of tax administration functions to the Philippines newly created BRO (1). 2.27 Cameroon Tax Policy and The project had a low start which has impacted the Revenue Admin. 8 0 achivement of results in FY24. Capacity Development 2.28 Enhancing Equitable Fiscal 2 0 Target not met. The project closed in June 2024. Policy in Benin and CIV 2.29 Caribbean: Strengthened Target not met yet. Project has been extended until Tax Policy for 4 0 February 2025. Climate Resil- ient Growth 2.31 Tax and The SRC staff was trained on using artificial intelligence Customs and ML tools in risk assessment predictive and descrip- Administration 2 2 tive models, introduction of international best practice Modernization on the topic and the digitalization of service delivery . in Armenia 2.32 EFT Strategies to R workshops were conducted in Georgia and Kenya to 4 2 Improve Tax support better data analytics among relevant staff (2) Compliance 2.33 Tax Policy Final series of analytical training sessions for tax officials Analysis to in Honduras (1). Online network analysis training Build Capacity 4 3 session for the fiscal intelligence team in Honduras (1). and Improve Workshop with the UNU-Wider team discussing Tax Data Equity Labs initiatives (1). 2.34 Strength- ening Guinea One-week comprehensive training on the new VAT law to Bissau’s Tax 2 1 Number of officials of the Tax authority. and Customs OUTPUTS capacity Administrations B.3.1 building events Burkina Faso: 6 workshops to introduce social and conducted 2.36 Domestic economic impact evaluation to tax expenditure assess- Revenue Mobi- ments (6). Chad: Capacity building and communication 6 9 lization in the on excise tax collection to other actors involved in tax Sahel Region collection (1). Mali: two training workshops to Mali’s main tax administrations on mining taxation (2). 2.39 Tax Regional workshop on TADAT assessment for the EAP Administration region (1). Capacity building events conducted as part Diagnostic 1 5 of the TADAT country assessments in Burundi and the Assessment Philippines (2). Tool (TADAT) Workshop on GMT and its implications for investment 2.41 Vietnam incentives reform in Vietnam (1) and workshop with 0 2 Tax Reform authorities on potential tax incentives design for Vietnam (1). Facilitated conversation with the European Union and the 2.45 Peru Tech- OECD in order to clarify concepts before the entry into nical Assistance 2 6 force of these taxes (1), Capacity building workshop on on Taxation Global Minimum Tax (1), Peer-to-peer knowledge sharing (1), Capacity building in environmental taxation (3) 2.42 State Tax One-day workshop for the STS on the concepts on Service Kyrgyz 0 1 transfer pricing, BEPS, thin capitalization. Republic 2.46 Ghana Tax Expenditure and Technical trainings on modeling and amending of reposi- 4 3 Climate Smart tories and generation of tax expenditure reports (3) Systems 2.47 Increasing Presentation of METR model (1); Discussions/ tax policy ana- Presentation of corporate tax incentives analysis 4 4 lytical capacity (jointly prepared with TPU) (2); Presentation of start-up in Tunisia evaluation (1) 2.51 Chad Tax 4 0 Target not met. The project closed in June 2024. and Customs A training of trainers on cost benefit analysis of tax 2.52 Ethiopia 2 2 incentives (1). Capacity building on tax policy analysis Tax Policy and revenue forecasting (2) 40 Global Tax Program FY24 Annual Progress Report Aggregated Logical Framework - Global Tax Program WINDOW 2: Country level activities Project Project Cumulated Cumulated Inception Inception Standard Total Total     Projects target results Results details FY24 targets results to date to date Indicators targets results FY24 FY24 FY24 FY24 targets results 2.53 Sierra Leone MTRS 2 0 Target not met. The project closed in June 2024. and Liberia Tax Expenditures Virtual workshops with the LTA management team on 2.54 Digitizing good practices for establishing a locus for the digital the Libyan Tax- 3 4 transformation process within the LTA, work on TINs and ation System organizational restructuring (4) One-week in person training on CEQ modelling to MoF Number of 2.55 Mauritania officials (1); training on the codification of custom Tax Revenue 2 3 OUTPUTS capacity exemptions (1), comprehensive training on Transfer B.3.1 building Mobilization Pricing to the DGI staff (1) events conducted 2.56 Senegal Enhancing Workshop on revenue mobilization reforms held as part Capacity for 1 1 of the new DPF policy dialogue. Achievement of MTRS Goals 2.57 Health Delivered thirteen trainings, workshops or events, seven 10 13 Taxes of which directly linked to government policy processes 2.58 Integrating Gender Equality 1 1 Training on sex-disaggregated data for ATAF into Tax Reform 41 Global Tax Program FY24 Annual Progress Report C. Window 3 - Actionable Research and Data, Knowledge & Learning 69. GTP activities under Window 3 “Actionable Research and Data, Knowledge,” currently repre- sent less than 5 percent of the resources allocated. Total allocations to date in this window reached US$3.7 million, the planned budget for FY24 is US$1,2 million, and the project teams executed 100% of the planned budget. By the end of FY24, all activities under this window completed activities. For more details on Window 3 activities at the project level, please refer to the GTP FY24 Project Cards report. 70. The project team working on gender and taxation in Ethiopia successfully completed all expected outputs, significantly enhancing the evidence base for further research and policy dialogue on taxes and transfers with a gender perspective. The primary client was the Ethiopian Statistical Service, with training and dissemination activities targeting the Ministry of Finance, Ministry of Revenues, Region- al Finance Bureaus, Ministry of Women and Social Affairs, and Ministry of Planning and Economic Development. The team collaborated with the Poverty and Equity and MTI GPs, as well as Save the Children UK and the Ethiopian Economic Association. By the end of FY24, the project delivered: (1) Nationally and regionally representative household survey data on taxes and transfers, including two survey reports and supporting documentation; (2) Six research reports on gender and taxation, five published in the WB Policy Research Working Paper (PRWP) series, with two including reproduc- ibility packages, and two published peer reviewed journals; (3) Four policy and data briefs; and (4) training and dissemination events, including one training workshop, one dissemination workshop, and 10 presentations at national and international forums and conferences. All deliverables including data, research reports and briefs are publicly available online. 71. In this fiscal year, the team working on the Tax Policy Analysis to Build Capacity and Improve Eq- uity conducted the final series of analytical trainings with tax officials in Honduras. The team also collaborated closely with the tax administration to create an application for visualizing networks of firms and their shareholders. The application highlights key characteristics, such as whether they are under special tax regimes, their classification as firms or individuals, and the percentage of ownership. Additionally, the team prepared two papers titled “Two decades of top income shares in Honduras” and VAT Refunds and Firms’ Performance: Evidence from a Withholding Reform in Honduras” and three reports: “Offshore leaks and tax enforcement in developing countries”; “Firm’s networks under export exemption regimes” and “The levels of capital income taxation in Honduras”. A policy dialogue session with the tax authority presenting the project key reports and main learning messages was con- ducted in the second half of FY24. For more details on the project’s results and activities please refer to the GTP FY24 Project Cards report. 42 Global Tax Program FY24 Annual Progress Report Table 8. Key Aggregated Results Under Window 3 Aggregated Logical Framework - Global Tax Program WINDOW 3: Actionable research and data, knowledge and learning Project Project Cumulated Cumulated Inception Inception Standard Total Total     Projects target results Results details FY24 targets results to date to date Indicators targets results FY24 FY24 FY24 FY24 targets results 3.4 Ethiopia Tax Compliance and Gender: Evidence from Field Experi- Gender and 2 1 ment in Ethiopia (1) Taxation 3.5 Tax Policy for a Green Total Carbon Price analysis completed for Argentina, Bra- 8 7 Recovery in zil, Colombia, Dominica, Jamaica, Paraguay, St. Lucia (7) Number LAC of KM 3.6 EFT C.1 Trade-offs in the Design of Simplified Tax Regimes 15 12 36 42 36 42 documents Strategies to prepared 3 2 (Kenya) (1); Lying to the Taxman: Experimental Evidence Improve Tax from a Novel Experiment in Tanzania (2). Compliance 3.7 Tax Policy Analysis to Two Decades of Top Income Shares in Honduras (1); Build Capacity 2 2 Offshore Data Leaks and Tax Enforcement in Developing and Improve Countries (2) OUTPUTS Equity 3.4 Ethiopia Gender and 1 1 Ethiopia Socioeconomic Panel Survey, 2024 (1) Number Taxation tools/ modules/ Country-level fiscal microsimulation tools extended C.2 3.5 Tax Policy to assess the impact of carbon taxes nompleted for 11 12 19 20 19 20 training materials for a Green Uruguay, Brazil, Paraguay, Jamaica and Argentina (5); 10 11 developed Recovery in CPAT simulations for Peru, Chile, Mexico, Colombia and LAC Paraguay (5); Developed a calibration of Goeth 2023 model for Peru (1). 3.4 Ethiopia Does Fiscal Policy Have a Role in Improving Child Well-Be- Number Gender and 2 3 ing in Ethiopia? (1), Urban Informal Business Enterprises of policy Taxation in Ethiopia: Stylized facts, gender and taxation (1) C.3 briefs, arti- 3.6 EFT Policy briefs summarizing the high level findings from 5 6 8 9 8 9 cles, blogs Strategies to the two experiments (Kenya and Tanzania) as well as prepared 3 3 Improve Tax implications for addressing tax evasion and avoidance Compliance below the VAT threshold (Georgia) (3) 43 Global Tax Program FY24 Annual Progress Report D. Window 4 - Program Management GTP Communications and Visibility 72. In FY24, the GTP Secretariat continued to support the publication of public knowledge goods and notes as well as organizing, hosting or supporting internal/external learning events. GTP speaking engagements in third-party external events and activities were also supported by the program. In De- cember 2023, the Holiday Edition of GTP News was published. 73. The GTP website has expanded its reach and influence with its continuously updated webpages on cri- sis response & support, environmental tax, gender equality & tax reform and health tax. In FY24, GTP website became more widely used as a resource based on all key metrics (see Figure 6). Figure 6. GTP Website Reach and Influence 31,341 16,915 12,290 Page Views Website Unique 7% Visits Visitors 12% 14% 981 2.0 min Publication Average Downloads time spent 5% on the website 0% 74. GTP continued to support the publication of public knowledge goods and knowledge notes as well as project progress and results. In FY24, 24 knowledge products were published with the support of GTP. Additionally, 10 blogs and briefs were also published and shared in the GTP website. For more details on all publications supported by the GTP, please refer to the GTP FY24 Project Cards report. 75. GTP organized or supported in total of 12 internal and external events in FY24. GTP-funded projects presented their activities in 49 speaking engagements. These events and speaking engagements pro- vided a platform to expand the dialogue on tax reform for low- and middle-income countries while increasing the visibility and awareness of GTP-supported work among its target audiences and stake- holders. 44 Global Tax Program FY24 Annual Progress Report Figure 7. GTP Website Visitors by Region 1 Greenland 4 290 196 78 Canada Iceland Russian Federation 1k 1k 209 209 347 64 5 1 3k 185 230 Bermuda 289 2k 201 1 1 122 34 503 4 1k 17 4 5 341 177 48 48 103 350 27 161 Figure 8. KM publications and events in FY24 Number of Number of Number of Number of Number of blogs publications stakeholder internal external produced/GTP and engagements events/ events/ mentioned knowledge webinars webinars products hosted or hosted or supported supported 11 24 49 6 7 Promote evidence- Highlight WB’s Increase Support efforts to based work and efforts in visibility and promote DRM as a knowledge strengthening DRM awareness of key development products in developing GTP solution countries 45 Global Tax Program FY24 Annual Progress Report Annexes: Annex 1. Financial Information Table 9. GTP Umbrella Development Partners Contributions, as of June 30, 2024 (in US$) MDTF - DRM Commitments in US$ Received in US$ To be received in US$ Australia-Department of Foreign Affairs and Trade 7,070,555.00 7,070,555.00 Denmark - Royal Ministry of Foreign Affairs 11,054,201.80 11,054,201.80 France - Ministry of Economy and Finance 16,057,775.00 7,777,400.00 8,280,375.00 Japan - Ministry of Finance 6,200,000.00 6,200,000.00 Luxembourg - Ministry of Finance (1) 4,034,208.19 4,034,208.19 Netherlands - Minister for Foreign Trade & Dev Cooperation 13,000,000.00 3,000,000.00 10,000,000.00 Norwegian Agency for Development Cooperation (NORAD) (2) 27,864,702.74 20,445,617.14 7,419,085.60 Swiss State Secretariat for Economic Affairs (SECO) 13,632,921.18 10,683,242.71 2,949,678.47 United Kingdom - FCDO (3) 7,364,187.00 7,364,187.00 Sub Total 106,278,550.91 77,629,411.84 28,649,139.07 1 Additional contribution amounting to NOK 110m was signed in November 2023. First instalments of NOK 30m was received in December 2023. 2 Additional contributions amounting to CHF 8m was signed in November 2023. First instalments of CHF 5m was received in December 2023. 3 UK provided an additional GBP 185,000 in January 2024 for the Tax Incentive Project. An additional GBP 450,000 was provided in May 2024 for Tax incentive, and environmental tax projects (GBP 300,000) and International Tax Project (GBP 150,000) 4 Japan signed additional contributions for US$1.2 million in March 2024. 5 Amendment with Denmark was signed in June 2024 for additional contribution of DKK 40m 5 Amendment with France was signed in August 2024 for additional contribution of EUR 10.5m 5 Amendment with Netherlands was signed in September 2024 for additional contribution of USD 10m MDTF - Thematic Contributions Commitments in US$ Received in US$ To be received in US$ Health Taxes - Bloomberg Family Foundations 7,000,000.00 5,137,000.00 1,863,000.00 Health Taxes - Norwegian Agency for Development Cooperation (NORAD) 3,004,732.30 3,004,732.30 Gender - United Kingdom FCDO 1,794,714.85 1,794,714.85 Sub Total 11,799,447.15 9,936,447.15 1,863,000.00 4 Additional contributions of US$3 million was signed in July 2023, of which US$1,137,000 was received upon signature SDTF Commitments in US$ Received in US$ To be received in US$ Swiss State Secretariat for Economic Affairs (SECO) 7,907,086.53 7,907,086.53 Netherlands - Minister for Foreign Trade & Dev Cooperation 7,000,000.00 7,000,000.00 Sub Total 14,907,086.53 14,907,086.53 - Fiscal Pillar Commitments in US$ Received in US$ To be received in US$ France - Ministry of Economy and Finance 1,773,650.00 1,773,650.00 Norwegian Agency for Development Cooperation (NORAD) 2,307,697.97 2,307,697.97 Swiss State Secretariat for Economic Affairs (SECO) 658,255.62 658,255.62 United Kingdom - FCDO 820,740.00 820,740.00 Sub Total 5,560,343.59 5,560,343.59 TOTAL 138,545,428.18 108,033,289.11 30,512,139.07 46 Global Tax Program FY24 Annual Progress Report Table 10. Total Donor Commitments to the GTP Umbrella (in US$), as of June 30, 2024 Development Partner Total Commitments in US$ % of Total Norwegian Agency for Development Cooperation (NORAD) 33,177,133.01 23.9% United Kingdom - FCDO 9,979,641.85 7.2% Swiss State Secretariat for Economic Affairs (SECO) 22,198,263.33 16.0% Netherlands - Minister for Foreign Trade & Dev Cooperation 20,000,000.00 14.4% Australia-Department of Foreign Affairs and Trade 7,070,555.00 5.1% France - Ministry of Economy and Finance 17,831,425.00 12.9% Denmark - Royal Ministry of Foreign Affairs 11,054,201.80 8.0% Japan - Ministry of Finance 6,200,000.00 4.5% Luxembourg - Ministry of Finance 4,034,208.19 2.9% Bloomberg Philanthropies 7,000,000.00 5.1% Total 138,545,428.18 100.0% 47 Global Tax Program FY24 Annual Progress Report Annex 2. GTP Workplan Table 11. Updated GTP Workplan as of June 30,2024 The following table provides updated information on the GTP portfolio, including implementation status, allocated total budget, and funding source. Budgets allocated to projects supporting countries in Fragile and Conflict-Affected Situations (FCS) are highlighted in orange. In implementation Pipeline Closed Total Status in Total Total SECO Total NTH Spent to in USD ‘000 Project ID Child TF TTL / Global Practice MDTF FY25 Budget Budget Budget date Budget Window 1: Global Tax Activities Assessment Frameworks 1.1 TPAF Development P163971 TF0A9217 S. James, MTI 293 293 0 0 293 1.2 DIAMOND P166147 TF0A8322 R. Junquera, GOV 866 866 0 0 866 Knowledge and Analytical Work P169976/ TF0A9455/ D. O’Sullivan, MTI, GP / 1.3 Toolkits & Research on Intl Tax 1,107 1,107 0 0 1107 P179248/P170177 TF0B8796/TF0C4101 C. Vargas, MTI 1.4 Digital VAT Guidelines P172968 TF0B1578 D. Alvarez, MTI/GOV 666 666 0 0 666 1.5 Tax Incentives Reform P174543 TF0B3098 T. Minh Le, MTI 457 457 0 0 457 1.6 Carbon Pricing Assessment Tool P170301 TF0B3624 D. Heine, MTI 626 626 0 0 626 1.7 Environmental Tax Reforms P176296 TF0B5006 I. Dorband, MTI 199 199 0 0 199 1.8 Executive Program in Tax and P175478 TF0C0592 A. Agerskov, MTI 500 500 0 0 185 Digital Transformation 1.9 OGE-DRM Progressivity & C. Habib, MTI / M. Kajubi, MTI P177907 TF0B9110 300 300 0 0 296 Extractives in IDA / A.Thomas, MTI 1.10 Quantitative Tools for Environ- A. Campmas, MTI, GP / J. P180311 TF0C2058 675 675 0 0 215 mental Tax Reform Analysis Mercure, Climate 1.11 Revenue BOOST P175240/P506801 TF0C4319 M. Mastruzzi, MTI 300 300 0 0 70 Sub-Total 5,987 5,987 - - 4,979 Window 2: Country Level Activities 2.01 TPAF Implementation P163971 closed S. James, MTI 0 0 0 0 0 2.02 TADAT Implementation P169803 TF0A9157/TF0B9467 M. Kajubi, MTI 687 687 0 0 687 2.03 MTRS Pilots P166493 TF0A7739 D. Alvarez, MTI 412 412 0 0 412 D. O’Sullivan, MTI, GP/ 2.04 International Tax Program P170177 TF0A6516/TF0A9396 8,594 8,594 0 0 7,919 C. Vargas, MTI P168210/ R. Junquera, GOV/ 2.05 Tax Reform in Uzbekistan TF0A8528/TF0C5051 3200 3,200 0 0 3,086 P505770 A. Vatyan, GOV 2.06 Innovations in Tax Compliance P161196 TF0B0124 S. Davenport, GOV 450 450 0 0 450 P169109/ V. Vulovic, MTI/L. Mohamed 2.07 Property Taxes TF0A8995/TF0C3626 1702 1,702 0 0 1,527 P180309 , GOV / M. Nagarajan, MTI 2.08 EAC Tax Evasion P170712 TF0B2235 Y. Quiros, FCI / I. Endo, FCI 1525 1,525 0 0 1,525 2.09 SOEs in Tanzania P164792 TF0A9561 G. Raballand, GOV 149 149 0 0 149 2.10 Somalia Customs P172650 TF0B1416 A. Nurshaikhova, GOV 1,715 1,715 0 0 1,715 2.11 Niger Customs P172636 TF0B1548 M. Babatounde, GOV 1,585 1,585 0 0 1,585 2.12 Afghanistan Customs P173604 TF0B2347 J. Gutierrez, GOV 510 510 0 0 510 P173237/ R. Junquera, GOV/ 2.13 Tajikistan Tax Policy & Adm TF0B2202/TF0C5050 2500 2,500 0 0 1,963 P505770 A. Vatyan, GOV 2.14 NRA Tax Evasion P173289 TF0B1941 Y. Quiros, FCI 2000 2,000 0 0 1,920 P173409 / TF0B2031 / 2.15 Nigeria Tax and Customs M. Kajubi, GOV 2,848 2,848 0 0 2,433 P181272 TF0C2570 2.16 Kosovo Tax Registration P173730 TF0B2447 J. Fallov, GOV 950 950 0 0 881 2.17 Tax Incentives Reform P174543 TF0B3076 T. Minh Le, MTI 1426 1,426 0 0 1,426 2.18 Carbon Pricing Assessment Tool P170301 TF0B3623 D. Heine, MTI 570 570 0 0 570 48 Global Tax Program FY24 Annual Progress Report Total Status in Total Total SECO Total NTH Spent to in USD ‘000 Project ID Child TF TTL / Global Practice MDTF FY25 Budget Budget Budget date Budget M. Caballero, GOV / H. 2.19 Central African Republic P172625 TF0B4785 493 493 0 0 493 Andrianasy, GOV 2.20 Malaysia Tax Policy Reform P175386 TF0B4216 Y. Keat Chong, MTI 495 495 0 0 495 2.21 Myanmar Tax Reform Assistance closed closed V. Nguyen, GOV 0 0 0 0 0 2.22 PNG Tax Reform Assistance P174416/P500403 TF0B5254/TF0C1656 V. Nguyen, GOV 940 940 0 0 772 2.23 Environmental Tax Reforms P176296 TF0B5007 I. Dorband, MTI 249 249 0 0 249 2.24 EAP Tax Evasion P177021 TF0B6055 Y. Quiros, FCI / U. Khalil, FCI 277 277 0 0 277 2.25 Cambodia Tax Reform Assistance P168407 TF0B8646 V. Nguyen, GOV 600 600 0 0 575 Project 2.26 BARMM Tax Reform TA - P178367 TF0B9505 V. Nguyen, GOV 600 600 0 0 281 Philippines 2.27 Tax policy and Revenue Administration Capacity Development P179082 TF0B8543 H. Fortin, GOV /J. Mali, GOV 1,000 1,000 0 0 736 in Cameroon 2.28 Enhancing Equitable Fiscal Policy P177988 TF0B8985 E. Malasquez, POV 250 250 0 0 250 in Benin and CIV 2.29 Caribbean: Strengthened Tax C. MacWilliam, MTI / R. Li, P179113 TF0B8579 210 210 0 0 173 Policy for Climate Resilient Growth MTI / R. Longmore, MTI 2.30 Support revenue mobilization in Central America with focus on P179152 TF0B8738 R. Chelles Barroso, MTI 392 392 0 0 208 environmental taxation 2.31 Tax and Customs Administration P174607 TF0B8470 A. Vatyan, GOV 752 752 0 0 752 Modernization in Armenia A. Brockmeyer, MTI 2.32 EFT Strategies to Improve Tax P179063 TF0B8591 J. Karver, POV / T. Scot, DIME 547 547 0 0 547 Compliance / C. Hoy, POV 2.33 Tax Policy Analysis to Build A. Brockmeyer, MTI / T. P179055 TF0B8589 182 182 0 0 182 Capacity and Improve Equity Scot, DIME 2.34 Strengthening Guinea Bissau’s J. Dhimitri/ J. Morgado, GOV/ P180941/P500566 TF0B9979/TF0C1006 750 750 0 0 317 Tax and Customs Administrations P. McCartney, MTI 2.35 Tax Policy for a Green Recovery P177378/P500629 TF0C0015 D. Navia, MTI 363 363 0 0 60 in LAC 2.36 Domestic Revenue Mobilization P177421 TF0C1559 D. Kaya, MTI/J. Dhimitri, GOV 945 945 0 0 346 in the Sahel Region 2.37 Gabon Technical Assistance on E. Kimani, GOV / E. Tjong, MTI P179082 TF0C4990 600 600 0 0 0 Tax Reform S. Barbara Ondo Ndong, MTI 2.38 Burundi Tax Policy and Adminis- P500893 TF0C4259 K. Senu Abalo, MTI 610 610 0 0 62 tration Reform 2.39 Tax Administration Diagnostic T. Minh Le, MTI / M. Misach P175478 TF0C4581 1,500 1,500 0 0 0 Assessment Tool (TADAT) Kajubi, GOV 2.54 Mauritania Tax Revenue P500687 TF0C4222 U. Thierry, MTI 620 620 0 0 2 Mobilization 2.55 Senegal Enhancing Capacity for W. Kouame, MTI / R. Kumar, P502475 TF0C3904 525 525 0 0 0 Achievement of MTRS Goals MTI/ J.Dhimitri, GOV 2.49 Ethiopia Tax Policy P174549 TF0C3711 T. Minh Le, MTI 300 300 0 0 0 SDTF SECO R. Junquera, GOV / Daniela 2.40 Tax Reform in Azerbaijan P166912/P506706 TF0A7239 2100 0 2100 0 1794 Felcman, GOV P166917/ 2.41 Vietnam Tax Reform TF0A6919/TF0B7709 V. Nguyen, GOV 1006 0 1006 0 1006 P176734 2.42 State Tax Service Kyrgyz P167921/ O. Balabushko, GOV/ TF0A8081/TF0C4964 2000 0 2000 0 1720 Republic P505770 A. Vatyan, GOV 2.43 Peru International Tax P160517 TF0A7238 C. Vargas, MTI / D. Barco, MTI 381 0 381 0 381 2.44 Peru Tax Domestic P160517 TF0B5334 D. Barco, MTI/ C. Vargas, MTI 211 0 211 0 211 2.45 Peru Technical Assistance on P503989 TF0C3967/TF0C3993 B. Celiku, MTI/ C. Vargas, MTI 540 0 540 0 152 Taxation 2.46 Ghana Tax Expenditure and P176445 TF0B9206 E. Gatuanjau, GOV 285 0 285 0 285 Climate Smart Systems 2.47 Increasing tax policy analytical P178283 TF0B9580 M. Cali, MTI / A.Thomas, MTI 350 0 350 0 350 capacity in Tunisia P168210/ 2.05 Tax Reform in Uzbekistan TF0C3584/TF0C5052 R. Junquera, GOV 400 0 400 0 156 P505770 2.16 Kosovo Tax Registration P173730 TF0C3587 J. Fallov, GOV 80 0 80 0 35 49 Global Tax Program FY24 Annual Progress Report Total Status in Total Total SECO Total NTH Spent to in USD ‘000 Project ID Child TF TTL / Global Practice MDTF FY25 Budget Budget Budget date Budget SDTF NTH 2.48 WAEMU countries TADAT P169803 TF0B0758 S. Diop, GOV 231 0 0 231 231 P171983/ 2.49 Sierra Leone and Liberia TF0B1142/TF0B8347 R. Awasthi, GOV 426 0 0 426 426 P165000 2.50 Senegal MTRS Tax and Customs P173565 TF0B2186/TF0B4997 M. Kajubi, MTI/ P.Bachas, DEC 963 0 0 963 963 2.51 Chad Tax and Customs P174411 TF0B3122 J.Dhimitri, GOV 1,479 0 0 1479 1479 2.52 Ethiopia Tax Policy P174549 TF0B3115 T. Minh Le, MTI 1,960 0 0 1960 1713 2.53 Sierra Leone MTRS and Liberia P177994/ TF0B9349/TF0C1670 S. Seth, MTI / M. Ndione, MTI 416 0 0 416 416 Tax Expenditures P181231 2.54 Digitizing the Libyan Taxation P180145 TF0B9975 A. Agerskov, MTI 248 0 0 248 248 System 2.55 Mauritania Tax Revenue P500687 TF0C2197 U. Thierry, MTI 308 0 0 308 308 Mobilization 2.56 Senegal Enhancing Capacity for W. Kouame, MTI / R. Kumar, P502475 TF0C3029 250 0 0 250 84 Achievement of MTRS Goals MTI/ J.Dhimitri, GOV MDTF- Thematic contributions 2.57 Health Taxes P176808 TF0B5677 Ceren Ozer, MTI 9,404 9,404 0 0 4319 2.58 Integrating Gender Equality into P176734 TF0B5679 Ceren Ozer, MTI 1,687 1,687 0 0 1265 Tax Reform Sub-Total 68,749 55,116 7,353 6,281 53,073 Window 3: Actionable Research, K&L 3.1 Innovations in Tax Compliance P161196 TF0A9175 S. Davenport, GOV 615 615 0 0 615 3.2 Data & Research on DRM P169704 TF0A9017 A.Custers, MTI 586 586 0 0 586 3.3 Revenue Academy P166150 TF0B0365 S.James, MTI 396 396 0 0 396 A. Ambel, DEC / T. Minh 3.4 Ethiopia Gender and Taxation P174551 TF0B3082 1,290 1,290 0 0 1290 Le, MTI 3.5 Tax Policy for a Green Recovery P177378 TF0C0014 D. Navia, MTI 331 331 0 0 331 in LAC A. Brockmeyer, MTI 3.6 EFT Strategies to Improve Tax P179063 TF0B8592 J. Karver, POV / T. Scot, DIME 149 149 0 0 149 Compliance / C. Hoy, POV 3.7 Tax Policy Analysis to Build A. Brockmeyer, MTI / T. P179055 TF0B8590 362 362 0 0 362 Capacity and Improve Equity Scot, DIME Sub-Total 3,728 3,728 - - 3,728 Window 4: Program Management P160093 TF0A5744 C. Ozer, MTI 4,825 4,825 0 0 3435 SECO TF0B0565 1,046 523 523 0 224 NL TF0B0516 706 353 0 353 326 B.Dev MTDF TF0B0277 178 178 0 0 178 4.1 GTP Secretariat B.Dev NL TF0B0515 58 29 0 29 29 TF0B7604 (MDTF) 287 287 0 0 287 Ind. Eval TF0B7551 (SECO) 0 0 40 0 40 TF0B7605 (NTH) 0 0 0 40 40 Sub-Total 7,101 6,196 563 422 4,558 TOTAL in ‘000 85,565 71,027 7,915 6,702 66,338 50 Global Tax Program FY24 Annual Progress Report Table 12. GTP Detailed Workplan as of June 30, 2024, and FY25 Budget The following table provides updated information on the GTP portfolio, including expenditures from FY18 to FY23, budget execution rate for the reporting period, and projected fiscal year budgets. Projects that have closed or are still in the pipeline are not applicable (NA) for calculating budget execution rates. In implementation Pipeline Closed Status in FY18-FY23 FY24 Budget FY25 Total Spent to in USD ‘000 Project ID Child TF TTL / Global Practice FY25 Expenses MDTF SECO NL Expenses Burn Rate Budget Budget date Window 1: Global Tax Activities Assessment Frameworks 1.1 TPAF Devel- P163971 TF0A9217 S. James, MTI 293 0 0 0 0 NA 0 293 293 opment 1.2 DIAMOND P166147 TF0A8322 R. Junquera, GOV 866 0 0 0 0 NA 0 866 866 Knowledge and Analytical Work 1.3 Toolkits & P169976/ TF0A9455/ D. O’Sullivan, MTI, GP / Research on P179248/ TF0B8796/ 940 167 0 0 167 100% 0 1,107 1107 C. Vargas, MTI Intl Tax P170177 TF0C4101 1.4 Digital VAT P172968 TF0B1578 D. Alvarez, MTI/GOV 666 0 0 0 0 NA 0 666 666 Guidelines 1.5 Tax Incentives P174543 TF0B3098 T. Minh Le, MTI 457 0 0 0 0 NA 0 457 457 Reform 1.6 Carbon Pricing P170301 TF0B3624 D. Heine, MTI 616 0 0 0 10 NA 0 626 626 Assessment Tool 1.7 Environmental P176296 TF0B5006 I. Dorband, MTI 199 0 0 0 0 NA 0 199 199 Tax Reforms 1.8 Executive Program in Tax and P175478 TF0C0592 A. Agerskov, MTI 32 154 0 0 154 100% 314 500 185 Digital Transfor- mation 1.9 OGE-DRM C. Habib, MTI / M. Progressivity & P177907 TF0B9110 Kajubi, MTI / A.Thomas, 179 121 0 0 117 96% 0 300 296 Extractives in IDA MTI 1.10 Quantitative Tools for Environ- A. Campmas, MTI, GP / P180311 TF0C2058 0 225 0 0 215 96% 450 675 215 mental Tax Reform J. Mercure, Climate Analysis 1.11 Revenue P175240/ TF0C4319 M. Mastruzzi, MTI 0 100 0 0 70 70% 150 300 70 BOOST P506801 Sub-Total 4,246 767 - - 732.8 96% 914 5,987 4,979 Window 2: Country Level Activities 2.01 TPAF Imple- P163971 closed S. James, MTI 0 0 0 0 0 NA 0 0 0 mentation 2.02 TADAT TF0A9157/ P169803 M. Kajubi, MTI 687 0 0 0 0 NA 0 687 687 Implementation TF0B9467 2.03 MTRS Pilots P166493 TF0A7739 D. Alvarez, MTI 412 0 0 0 0 NA 0 412 412 2.04 International TF0A6516/ D. O’Sullivan, MTI, GP/ P170177 6,478 1598 0 0 1,441 90% 674.83 8,594 7,919 Tax Program TF0A9396 C. Vargas, MTI 2.05 Tax Reform in P168210/ TF0A8528/ R. Junquera, GOV/ 2,787 413 0 0 299 72% 114 3200 3,086 Uzbekistan P505770 TF0C5051 A. Vatyan, GOV 2.06 Innovations in P161196 TF0B0124 S. Davenport, GOV 450 0 0 0 0 NA 0 450 450 Tax Compliance V. Vulovic, MTI/L. 2.07 Property P169109/ TF0A8995/ Mohamed, GOV / M. 1,294 252 0 0 233 92% 175 1702 1,527 Taxes P180309 TF0C3626 Nagarajan, MTI 2.08 EAC Tax Y. Quiros, FCI / I. P170712 TF0B2235 1,056 470 0 0 468 100% 0 1525 1,525 Evasion Endo, FCI 2.09 SOEs in P164792 TF0A9561 G. Raballand, GOV 149 0 0 0 0 NA 0 149 149 Tanzania 2.10 Somalia P172650 TF0B1416 A. Nurshaikhova, GOV 1,576 139 0 0 139 100% 0 1,715 1,715 Customs 2.11 Niger Customs P172636 TF0B1548 M. Babatounde, GOV 1,471 179 0 0 114 64% 0 1,585 1,585 2.12 Afghanistan P173604 TF0B2347 J. Gutierrez, GOV 510 0 0 0 0 NA 0 510 510 Customs 2.13 Tajikistan Tax P173237/ TF0B2202/ R. Junquera, GOV/ 1,526 500 0 0 437 87% 536.98 2500 1,963 Policy & Adm P505770 TF0C5050 A. Vatyan, GOV 51 Global Tax Program FY24 Annual Progress Report Status in FY18-FY23 FY24 Budget FY25 Total Spent to in USD ‘000 Project ID Child TF TTL / Global Practice FY25 Expenses MDTF SECO NL Expenses Burn Rate Budget Budget date 2.14 NRA Tax P173289 TF0B1941 Y. Quiros, FCI 999 921 0 0 921 100% 80 2000 1,920 Evasion 2.15 Nigeria Tax P173409 / TF0B2031 / M. Kajubi, GOV 2,205 644 0 0 228 35% 415 2,848 2,433 and Customs P181272 TF0C2570 2.16 Kosovo Tax P173730 TF0B2447 J. Fallov, GOV 793 157 0 0 88 56% 69 950 881 Registration 2.17 Tax Incentives P174543 TF0B3076 T. Minh Le, MTI 771 691 0 0 655 95% 0 1426 1,426 Reform 2.18 Carbon Pricing P170301 TF0B3623 D. Heine, MTI 570 0 0 0 0 NA 0 570 570 Assessment Tool 2.19 Central M. Caballero, GOV / H. P172625 TF0B4785 493 0 0 0 0 NA 0 493 493 African Republic Andrianasy, GOV 2.20 Malaysia Tax P175386 TF0B4216 Y. Keat Chong, MTI 495 0 0 0 0 NA 0 495 495 Policy Reform 2.21 Myanmar Tax closed closed V. Nguyen, GOV 0 0 0 0 0 NA 0 0 0 Reform Assistance 2.22 PNG Tax P174416/ TF0B5254/ V. Nguyen, GOV 556 220 0 0 215 98% 169 940 772 Reform Assistance P500403 TF0C1656 2.23 Environmental P176296 TF0B5007 I. Dorband, MTI 242 0 0 0 8 NA 0 249 249 Tax Reforms 2.24 EAP Tax Y. Quiros, FCI / U. P177021 TF0B6055 122 170 0 0 155 91% 0 277 277 Evasion Khalil, FCI 2.25 Cambodia Tax Reform Assistance P168407 TF0B8646 V. Nguyen, GOV 217 332 0 0 357 108% 25 600 575 Project 2.26 BARMM Tax Reform TA - P178367 TF0B9505 V. Nguyen, GOV 104 250 0 0 176 70% 320 600 281 Philippines 2.27 Tax policy and Revenue Adminis- H. Fortin, GOV /J. tration Capacity P179082 TF0B8543 215 470 0 0 521 111% 264 1,000 736 Mali, GOV Development in Cameroon 2.28 Enhancing Equitable Fiscal P177988 TF0B8985 E. Malasquez, POV 159 91 0 0 90 99% 0 250 250 Policy in Benin and CIV 2.29 Caribbean: C. MacWilliam, MTI / R. Strengthened Tax P179113 TF0B8579 Li, MTI / R. Longmore, 81 100 0 0 92 92% 37 210 173 Policy for Climate MTI Resilient Growth 2.30 Support revenue mobili- zation in Central P179152 TF0B8738 R. Chelles Barroso, MTI 77 165 0 0 131 80% 184 392 208 America with focus on environmental taxation 2.31 Tax and Cus- toms Administra- P174607 TF0B8470 A. Vatyan, GOV 344 436 0 0 409 94% 0 752 752 tion Modernization in Armenia 2.32 EFT Strategies A. Brockmeyer, MTI to Improve Tax P179063 TF0B8591 J. Karver, POV / T. Scot, 220 330 0 0 327 99% 0 547 547 Compliance DIME / C. Hoy, POV 2.33 Tax Policy Analysis to Build A. Brockmeyer, MTI / T. P179055 TF0B8589 127 60 0 0 55 92% 0 182 182 Capacity and Scot, DIME Improve Equity 2.34 Strengthening Guinea Bissau’s P180941/ TF0B9979/ J. Dhimitri/ J. Morgado, 127 350 0 0 190 54% 433.18 750 317 Tax and Customs P500566 TF0C1006 GOV/ P. McCartney, MTI Administrations 2.35 Tax Policy for P177378/ a Green Recovery TF0C0015 D. Navia, MTI 27 33 0 0 33 101% 303 363 60 P500629 in LAC 2.36 Domestic Rev- D. Kaya, MTI/J. enue Mobilization P177421 TF0C1559 207 350 0 0 138 40% 599 945 346 Dhimitri, GOV in the Sahel Region E. Kimani, GOV / E. 2.37 Gabon Tech- Tjong, MTI nical Assistance on P179082 TF0C4990 0 0 0 0 0 NA 485 600 0 S. Barbara Ondo Ndong, Tax Reform MTI 52 Global Tax Program FY24 Annual Progress Report Status in FY18-FY23 FY24 Budget FY25 Total Spent to in USD ‘000 Project ID Child TF TTL / Global Practice FY25 Expenses MDTF SECO NL Expenses Burn Rate Budget Budget date 2.38 Burundi Tax Policy and Adminis- P500893 TF0C4259 K. Senu Abalo, MTI 0 65 0 0 62 96% 288 610 62 tration Reform 2.39 Tax Adminis- tration Diagnostic T. Minh Le, MTI / M. P175478 TF0C4581 0 155 0 0 0 NA 400 1,500 0 Assessment Tool Misach Kajubi, GOV (TADAT) 2.54 Mauritania Tax Revenue P500687 TF0C4222 U. Thierry, MTI 0 0 0 0 2 NA 310 620 2 Mobilization 2.55 Senegal W. Kouame, MTI / R. Enhancing Capacity P502475 TF0C3904 Kumar, MTI/ J.Dhimitri, 0 0 0 0 0 NA 262 525 0 for Achievement of GOV MTRS Goals 2.49 Ethiopia Tax P174549 TF0C3711 T. Minh Le, MTI 0 0 0 0 0 NA 300 300 0 Policy SDTF SECO 2.40 Tax Reform in P166912/ R. Junquera, GOV / TF0A7239 1,415 0 350 0 379 108% 306 2100 1794 Azerbaijan P506706 Daniela Felcman, GOV 2.41 Vietnam Tax P166917/ TF0A6919/ V. Nguyen, GOV 752 0 323 0 254 79% 0 1006 1006 Reform P176734 TF0B7709 2.42 State Tax P167921/ TF0A8081/ O. Balabushko, GOV/ Service Kyrgyz 1,338 0 450 0 382 85% 280.00 2000 1720 P505770 TF0C4964 A. Vatyan, GOV Republic 2.43 Peru Interna- C. Vargas, MTI / D. P160517 TF0A7238 381 0 0 0 0 NA 0 381 381 tional Tax Barco, MTI 2.44 Peru Tax D. Barco, MTI/ C. P160517 TF0B5334 202 0 10 0 10 NA 0 211 211 Domestic Vargas, MTI 2.45 Peru Technical TF0C3967/ B. Celiku, MTI/ C. Assistance on P503989 0 0 260 0 152 58% 389 540 152 TF0C3993 Vargas, MTI Taxation 2.46 Ghana Tax Expenditure and P176445 TF0B9206 E. Gatuanjau, GOV 258 0 27 0 27 99% 0 285 285 Climate Smart Systems 2.47 Increasing tax M. Cali, MTI / A.Thom- policy analytical P178283 TF0B9580 130 0 220 0 220 100% 0 350 350 as, MTI capacity in Tunisia 2.05 Tax Reform in P168210/ TF0C3584/ R. Junquera, GOV 0 0 150 0 156 104% 244 400 156 Uzbekistan P505770 TF0C5052 2.16 Kosovo Tax P173730 TF0C3587 J. Fallov, GOV 0 0 40 0 35 87% 45.14 80 35 Registration SDTF NTH 2.48 WAEMU P169803 TF0B0758 S. Diop, GOV 231 0 0 0 0 NA 0 231 231 countries TADAT 2.49 Sierra Leone P171983/ TF0B1142/ R. Awasthi, GOV 426 0 0 0 0 NA 0 426 426 and Liberia P165000 TF0B8347 2.50 Senegal MTRS TF0B2186/ M. Kajubi, MTI/ P173565 963 0 0 0 0 NA 0 963 963 Tax and Customs TF0B4997 P.Bachas, DEC 2.51 Chad Tax and P174411 TF0B3122 J.Dhimitri, GOV 1,170 0 0 331 308 93% 0 1,479 1479 Customs 2.52 Ethiopia Tax P174549 TF0B3115 T. Minh Le, MTI 1,411 0 0 550 303 55% 0 1,960 1713 Policy 2.53 Sierra Leone P177994/ TF0B9349/ S. Seth, MTI / M. MTRS and Liberia 115 0 0 305 301 99% 0 416 416 P181231 TF0C1670 Ndione, MTI Tax Expenditures 2.54 Digitizing the Libyan Taxation P180145 TF0B9975 A. Agerskov, MTI 130 0 0 120 118 98% 0 248 248 System 2.55 Mauritania Tax Revenue P500687 TF0C2197 U. Thierry, MTI 0 0 0 310 308 99% 0 308 308 Mobilization 2.56 Senegal W. Kouame, MTI / R. Enhancing Capacity P502475 TF0C3029 Kumar, MTI/ J.Dhimitri, 0 0 0 250 84 34% 0 250 84 for Achievement of GOV MTRS Goals 53 Global Tax Program FY24 Annual Progress Report Status in FY18-FY23 FY24 Budget FY25 Total Spent to in USD ‘000 Project ID Child TF TTL / Global Practice FY25 Expenses MDTF SECO NL Expenses Burn Rate Budget Budget date MDTF- Thematic contributions 2.57 Health Taxes P176808 TF0B5677 Ceren Ozer, MTI 2,858 2080 0 0 1,461 70% 1709 9,404 4319 2.58 Integrating Gender Equality P176734 TF0B5679 Ceren Ozer, MTI 761 463 0 0 503 109% 463 1,687 1265 into Tax Reform Sub-Total 40,089 12,084 1,830 1,866 12,984 82% 9,881 68,749 53,073 Window 3: Actionable Research, K&L 3.1 Innovations in P161196 TF0A9175 S. Davenport, GOV 615 0 0 0 0 NA 0 615 615 Tax Compliance 3.2 Data & P169704 TF0A9017 A.Custers, MTI 586 0 0 0 0 NA 0 586 586 Research on DRM 3.3 Revenue P166150 TF0B0365 S.James, MTI 396 0 0 0 0 NA 0 396 396 Academy 3.4 Ethiopia Gender A. Ambel, DEC / T. Minh P174551 TF0B3082 701 589 0 0 588 100% 0 1,290 1290 and Taxation Le, MTI 3.5 Tax Policy for a Green Recovery P177378 TF0C0014 D. Navia, MTI 101 230 0 0 230 100% 0 331 331 in LAC 3.6 EFT Strategies A. Brockmeyer, MTI to Improve Tax P179063 TF0B8592 J. Karver, POV / T. Scot, 0 150 0 0 149 99% 0 149 149 Compliance DIME / C. Hoy, POV 3.7 Tax Policy Analysis to Build A. Brockmeyer, MTI / T. P179055 TF0B8590 108 254 0 0 253 100% 0 362 362 Capacity and Scot, DIME Improve Equity Sub-Total 2,507 1,223 - - 1,221 100% - 3,728 3,728 Window 4: Program Management P160093 TF0A5744 C. Ozer, MTI 2,915 580 0 0 520 90% 580 4,825 3435 SECO TF0B0565 218 0 100 0 6 6% 205 1,046 224 NL TF0B0516 273 0 80 53 66% 0 706 326 B.Dev TF0B0277 178 0 0 0 0 NA 0 178 178 MTDF 4.1 GTP Secretariat B.Dev NL TF0B0515 29 0 0 0 0 NA 0 58 29 TF0B7604 287 0 0 0 0 NA 0 287 287 (MDTF) TF0B7551 Ind. Eval 40 0 0 0 0 NA 0 0 40 (SECO) TF0B7605 40 0 0 0 0 NA 0 0 40 (NTH) Sub-Total 3,980 580 100 80 579 76% 785 7,101 4,558 TOTAL in ‘000 50,822 14,654 1,930 1,946 15,516 84% 11,580 85,565 66,338 54 Global Tax Program FY24 Annual Progress Report Annex 3. WB informed loans by GTP-funded activities in FY24 informed loan Amount DRM Status of WB WB informed Informing Instrument reporting Financing role Country Amount activity specific of loan FY of loan GTP GP Preliminary tax policy assessment of a major tax reform passed in December 2023 by the Executive branch: the team jointly with the Ecuador Carbon- MTI LAC Economist prepared a note reviewing Conscious Fiscal the major potential tax reforms included and Growth International in the draft bill to promote economic and Ecuador MTI DPF Active US$ 700M FY24 Development Tax Program employment growth, including other country Policy Financing experiences and best practices of the reforms. (P505747) This note was sent to the Ministry of Economy for consideration. This work informed the DRM component of a WBG lending operation (P505747). Benin First Boosting Preliminary results of a CEQ analysis, supported Enhancing Inclusive Growth by the GTP, were used as inputs in the Poverty Equitable Fiscal Benin MTI and Resilience DPF DPF Active US$230 M US$ 230 M FY24 Social Impact Analysis (PSIA) for the Benin First Policy in Benin with CAT DDO Boosting Inclusive Growth and Resilience DPF and CIV (P180286) with CAT DDO (P180286-US$ 230 M). Seychelles Third Fiscal Outputs produced by the International Sustainability and International Tax team in Seychelles informed the DRM Seychelles MTI Climate Resilience DPF Active US$25 M US$ 8.3 M FY24 Tax Program component of a new WBG lending operation Development (DPO3- P178210). Policy Financing (P178210) The GTP funded project provided recommendations on technical and functional Tax and Armenia Fourth descriptions of three electronic systems is Customs Public Sector informing the implementation of a Fourth Armenia GOV IPF Active US$29.9 M US$16.0 M FY24 Administration Modernization Public Sector Modernization Project (PSMP4) Modernization Project (P176803) (P176803 – US$30 million) and will be further in Armenia supported by this lending operation, as agreed with counterparts. Caribbean: Prior Action 1 of the recently approved St Saint Lucia Strengthened Lucia DPC supported the (a) introduction of Sustainable Tax Policy the health and citizen security levy at a rate of Saint Lucia MTI Recovery DPF Active US$40 M US$ 5.0 M FY24 for Climate 2.5 percent on goods and services; and (b) 102 Development Policy Resilient percent increase of the excise tax on cigarettes. Credit (P179539) Growth Both of which were covered in the tax study. In 2022, the health tax team collaborated with MTI colleagues on the development of a short assessment of health taxes in North Macedonia as an input to a Public Finance Review. Following demand from the Ministry of Finance, this assessment was expanded into a comprehensive deep dive and series of North Macedonia workshops focused on tobacco and alcohol North Sustainability and tax reforms. In October 2023, supported by MTI DPF Closed US$100 M US$ 20 M FY24 Health Taxes Macedonia Resilience DPO the World Bank-funded Sustainability and (P180587) Resilience Development Policy Loan, the tobacco reforms were enacted- an important milestone in North Macedonia’s pathway to joining the European Union, and to inform future engagement between North Macedonia and the Bank. These reforms will ensure North Macedonia’s compliance with the European Union’s tobacco tax directives by 2030. 55 Global Tax Program FY24 Annual Progress Report informed loan Amount DRM Status of WB WB informed Informing Instrument reporting Financing role Country Amount activity specific of loan FY of loan GTP GP Comprehensive Revenue Enhancement Strategies for the 15 Municipal Councils and 5 City Councils were prepared and delivered. The analytical work produced by the GTP funded project is informing the proposed restructuring of the Zambia Devolution Support Program (ZDSP), a US$210 million concessional IDA lending operation (hybrid program with two components: PforR US$ 200 million and IPF US$ 10 million), and contributed to inform the development of two new Disbursement Linked Indicators (DLIs) which will incentivize the Ministry of Local Government and Rural Development (MLGRD) to improve the policy, Zambia Devolution Property tax legal and administrative environment for local Zambia GOV Support Program PforR Active US$210 M US$ 25 M FY24 activity in authorities’ (LAs) own source revenue (OSR) (P178492) Zambia mobilization as well as to offer incentives to LAs for improved OSR collection, including property tax. The PforR was originally limited to the 96 Town Councils; currently it is expanded to include the 20 urban councils to incentivize them to implement revenue enhancement strategies plans. The currently ongoing restructuring will expand the scope of the PforR to all the 116 councils (cities and Municipalities will be included). Additionally, more support will be provided through the IPF component of the program which provides institutional support to leading agencies that implement the DLIs under the PforR, and it is also under restructuring. During FY24, the GTP funded project supported the identification, design and preparation of the Accelerating Accelerating Resources Mobilization Reforms Resource Nigeria Tax (ARMOR) Program for Results (P177308) Nigeria GOV Mobilization PforR Active US$ 500 M US$ 300 M FY24 and Customs and the revenue mobilization component of Reforms (ARMOR) Reform the Reforms for Economic Stabilization to (P177308) Enable Transformation (RESET) Development Policy Financing (P501661). Both programs (ARMOR – USD 750 and RESET 1.5 billion USD) were approved by the Bank Board of Directors on June 13, 2024. Other World Bank operations at the Federal level that include Reforms for strong revenue components, include the Fiscal Economic Governance and Institutions Project (P163540; Stabilization $125 million) that has now been restructured to Enable Nigeria Tax to support Nigeria implement an automated Nigeria GOV Transformation DPF Active US$ 1500 M US$ 500 M FY24 and Customs revenue assurance and centralized billing and (RESET) Reform disbursement platform. The States Fiscal Development Transparency, Accountability and Sustainability Policy Financing (P162009; $750 million) Program was closed (P501661) and successor State Action on Business Enabling Reforms (SABER) Program (P177442) launched to support enhancement of revenue mobilization at the subnational level. Note: Investment Project Financing (IPF): IPF provides IBRD loan IDA credit/grant as well as IBRD and IDA guarantee financing in support of clients for activities that create the physical or social infrastructure necessary to reduce poverty and create sustainable development. IPF focuses on long-term (5-10 years) finance of goods works services and other types of expenditures. Development Policy Financing (DPF): DPF provides direct budget support to governments for policy and institutional reforms aimed at achieving a set of specific development results. These operations provide rapid financial assistance to allow countries to deal with actual or anticipated development financing requirements. Program-for-Results (PforR): PforR links disbursement of funds directly to the delivery of defined results helping countries improve the design and implementation of their own development programs and achieve lasting results by strengthening institutions and building capacity. 56 Global Tax Program FY24 Annual Progress Report Annex 4. Performance dimensions Dimension Scope of the Assessment Ratings Questions - Were the inception to date results, as defined in the results Achievement of expected results (incep- 70 - 100%: 4 framework, achieved or are likely to be achieved? tion to date). Rating is assigned for the 1.Output achieve- 50 - 70%: 3 -Have expected results been postponed for 12 months or dimension not for individual indicators. ment 30 – 50%: 2 more? % of indicators that achieved their incep- 0 – 30%: 1 -Were the inputs/activities necessary to achieve the planned tion to date target. outputs completed on time? - Were the inception to date results, as defined in the results Achievement of expected results (incep- 70 - 100%: 4 framework, achieved or are likely to be achieved? tion to date). Rating is assigned for the 2.Outcome achieve- 50 - 70%: 3 -Have expected results been postponed for more 12 months dimension not for individual indicators. ment 30 – 50%: 2 or more? % of indicators that achieved their incep- 0 – 30%: 1 -Were the outputs necessary to achieve the planned out- tion to date target. comes completed on time? - Are there significant deviations from the planned FY21 0 to +/-20% : 4 budget? +/-20.1% to +/-40% : 3 3. Budget Burn rates – Deviations from Plan -What were the deviations in previous periods? +/-40.1% to +/-50% : 2 -Overall burn rate to date vs time elapsed since project +/-50.1% and up : 1 approval. -To what extent were fixed costs (e.g., staff) charged to the 0-100%: 4 Efficiency: expenses/results (inception to grant while the project was delayed? 100%-125%: 3 4. Efficiency date burn rate/ % of results achieved from -Consistency between expenditures and activities carried 126-150%: 2 total results expected) out. 150%-up: 1 -Assess operational efficiency. 57