Current global tax rules are deeply unjust. Countries, particularly from the Global South, cannot adequately tax profits generated in their economies due to an unfair allocation of taxing rights and rampant tax abuse. The OECD also known as the “rich countries’ club” – has been the primary institution where global tax rules have been formulated. That is, where norms and standards had been set; the negotiations leading to them had been conducted behind closed doors without transparent and publicly accessible decision-making processes. The majority of developing countries are not members of the OECD which excludes them from sitting at the OECD’s negotiating table as equals. And what is decided without universal participation cannot have the legitimacy for universal application. It is time to rewrite the global tax rules through a UN Tax Convention so that all countries can negotiate fair, effective, and efficient global tax rules on equal footing.
Timeline of the negotiations
- 2025 – 2027: The UN Tax Convention Negotiations – The negotiations for a UN Tax Convention and two early protocols began in 2025. The Intergovernmental Negotiating Committee holds three sessions a year with the aim to finalize the text for submission to the UN General Assembly in mid-2027.
- 2024: The UN Tax Convention Mandate – Countries came together in 2024 under an Ad Hoc Committee to draft the Terms of Reference, the mandate for the UN Tax Convention. In November 2024, the UN General Assembly adopted the Terms of Reference and the roadmap for negotiations between 2025 and 2027. The Terms of Reference mandated three legally binding agreements: a UN Tax Convention and two early protocols. The Convention aims to build a fair, inclusive, transparent, and effective global tax system that supports sustainable development and gives all countries an equal voice in rule-making.
- 2023: The UN Secretary-General Report – Following a report by the UN Secretary-General outlining options for international tax cooperation, a majority of UN Member States voted in favour of starting negotiations for a UN Framework Convention on International Tax Cooperation.
- 2022: Discussions on Inclusive Tax Cooperation – The campaign achieved a tipping point in 2022, when the African Group, with the support of the G77, successfully moved Resolution 77/244 at the UN General Assembly that opened the door to inclusive intergovernmental negotiations. This moment shifted the international tax debate from the OECD to a multilateral and inclusive arena at the UN.
- 2015: The Call for a Global Tax Body – The UN Tax Convention negotiations are the result of decades of efforts by countries in the Global South. At the 3rd Financing for Development Conference, the call for a “Global Tax Body,” or what is now the UN Tax Convention, was launched. It was supported by the G77 group of developing countries, unsuccessful at the time due to blocking by OECD members. Civil society continued the push with the slogan: “If You Are Not at the Table, You are on the Menu!”
Campaign activities
GATJ and its members have campaigned for a decade to negotiate the global tax rules at the UN. This campaign has seen an initial success. Now, GATJ campaigns in the negotiations for a UN Tax Convention. Under this campaign, GATJ co-coordinates with Eurodad the UN Tax Convention Working Group. The Working Group also serves as the Domestic Public Resrouces Workstream of the Civil Society Financing for Development Mechanism (CS FfD Mechanism). GATJ brings together civil society to make UN submissions with 200+ signatories, produce “FfD Chronicles” during UN tax negotiations highlighting the position of civil society, and makes interventions in the negotiations.
GATJ calls for a UN Tax Convention:
- Based on the principles of universality and equal participation.
- To create an inclusive global decision-making body on tax.
- To end tax havens, tax abuse by multinational corporations and the rich, and illicit financial flows.
- Which can link to development, human rights, gender equality, and environmental sustainability.
- Increase government accountability and public participation in international tax matters.
- Promote fairness for Global South countries.
- Create global coherence and reduce complexity.
For organisations looking to join the UN Tax Convention Working Group for civil society and trade unions, send an email to: [email protected].