New York, August 15 – From August 4 – 15, UN Member States, civil society, and other stakeholders met at the UN Headquarters in New York for the start of the substantial negotiations for the UN Framework Convention on International Tax Cooperation and two early protocols. These negotiations come at a critical time when billions are drained from countries due to tax abuse by multinationals and the rich. This rampant tax abuse is a failure of the current global tax rules. Now, a historic change is happening: countries are negotiating a legally-binding global UN tax convention from now until mid-2027. Following these negotiations in New York, the next session will be held from November 10 – 21 in Nairobi. 

Dr. Dereje Alemayehu, Executive Coordinator of GATJ, said, “The choice before us is simple: either we recycle the same failed OECD frameworks, or we have the courage to build something new, a truly universal, democratic UN Tax Convention that serves all countries, especially those who have been historically excluded from decision-making on tax. As we continue this process and look to the next round of negotiations in Nairobi, countries must remain ambitious for a truly transformative and equitable global tax system that works.”

Throughout the two weeks of negotiations, civil society as well as Member States highlighted the gravity of these negotiations. Tove Maria Ryding, Tax Justice Manager at Eurodad and Coordinating Committee Member of GATJ commented, “Delivering a strong framework convention is in the interest of all. The present international tax system with thousands of bilateral tax treaties is incoherent, failing countries in both the Global South and North. Now, countries must produce a robust framework convention that gives a strong mandate to the future Conference of the Parties to continue developing this crucial work.” 

Adrián Falco, Coordinator of Red de Justicia Fiscal de América Latina y el Caribe, a regional member network of GATJ, added, “The current global tax rules were developed at a time when many of our countries did not have political independence. These negotiations are not about capacity-building but about fixing deeply flawed global tax rules that do not work for the Global South nor North. Now, this process is a turning point to articulate our regional needs and realities.” 

The negotiations follow three workstreams: Workstream I on the framework convention; Workstream II on the first early protocol, taxation of income derived from the provision of cross-border services in an increasingly digitalized and globalized economy; and Workstream III on the second early protocol, prevention and resolution of tax disputes. 

In reaction to the discussions on taxation of income derived from the provision of cross-border services in an increasingly digitalized and globalized economy, Everlyn Muendo, Tax Policy Lead at Tax Justice Network Africa, a regional member network of GATJ, shared “The tax revenue lost from the current global tax system, and specifically the transfer pricing system, erodes the ability of governments to fund public services, from health to education, that are essential for the achievement of the Sustainable Development Goals. Taxing digital services and ultimately fixing the system by replacing the outdated transfer pricing system is a crucial outcome needed from these negotiations.” 

Commenting on dispute prevention and resolution, Lison Rehbinder, Global Campaigns and Policy Advocacy Coordinator – Europe at GATJ, added, “The best way to address tax disputes is through prevention: by fixing the failed corporate tax system. It’s not possible for tax authorities to efficiently tax multinational corporations using the transfer pricing system, it leads to countless disputes that are costly and time-consuming to resolve. The solution lies in structural reform, by leaving behind the transfer pricing system, and implementing unitary taxation of multinationals based on worldwide profits with formulary apportionment, allocated according to real economic activity. Ultimately, it goes back to the work of Workstream I: The Framework Convention should give the Conference of the Parties a clear mandate to advance this approach.” 

For over a decade, GATJ, as a coalition of over 100 civil society organisations and trade unions, has called for the creation of a body at the UN where all countries can participate in the development of effective and inclusive global tax rules. Over the past two weeks, civil society has provided submissions and interventions into the negotiations.

On participation, Luis Moreno, Chair of GATJ and member of Red de Justicia Fiscal de América Latina y el Caribe, commented, “This process has been demanded for many years. Civil society has been at the forefront of this call, bringing experts from tax to intersecting movements on gender, development, human rights, and climate justice. Now, it is essential that civic space is maintained for a transparent and democratic process.” 

The mandate for the UN Tax Convention, the Terms of Reference, is to establish a framework convention for sustainable development in all three pillars: social, economic, and environmental. 

Commenting on the importance of progressive environmental taxation, Jeannie Manipon, Co-Coordinator of Tax and Fiscal Justice Asia and Coordinating Committee Member of GATJ added, “Taxation is not just a technical issue, it is deeply political and affects development, human rights, gender equality, and climate justice. As we look to the next round of UN tax negotiations which take place at the same time as the COP30 climate negotiations, we must ensure that the new global tax rules integrate the ‘polluter pays principle’ and serve to deliver urgently needed resources to fund climate action.” 

Maureen Mburu, Tax and Gender Lead and Africa Campaigns Coordinator at GATJ, spoke on the role of gender in the global tax rules, “At the 4th International Financing for Development Conference, countries committed to gender-responsive and progressive taxation. Now, countries must bring these commitments to the legally-binding UN Tax Convention to ensure that our international tax system addresses inequalities, both within and between countries.” 

Now, as the negotiations move forward, civil society will continue actively contributing to this process.

Ends

For more resources: 

More information on the first and second session of substantial negotiations can be found on the UN website here. 

Contact: 

Alexandra Wenzel,  Global Communications Coordinator, GATJ [email protected], WhatsApp +41 778133732

About GATJ: 

The Global Alliance for Tax Justice (GATJ) is a South-led global coalition in the tax justice movement. Together we work for a world where progressive and redistributive tax policies counteract inequalities within and between countries, and generate the public funding needed to ensure essential services and human rights.

Created in 2013, GATJ comprises regional tax justice networks in Asia (Tax & Fiscal Justice Asia), Africa (Tax Justice Network Africa), Latin America (Red de Justicia Fiscal de América Latina y el Caribe), Europe (Tax Justice-Europe) and North America (Canadians for Tax Fairness & FACT Coalition), collectively representing hundreds of organisations. GATJ co-coordinates the Tax justice Workstream of the CS FfD Mechanism.