September 2, 2026 – The Global Alliance for Tax Justice (GATJ) and over 150 civil society organizations and trade unions made a joint submission in response to the release of the zero draft Framework Convention on tax. Joint submissions were also made on the two early protocols.

The submissions were made following the 5th session of negotiations for the UN Framework Convention on International Tax Cooperation (UN Tax Convention) which took place August 3 – 13. Governments in the first week discussed the recently released Co-Lead’s Zero Draft Framework Convention. The second week of the session covered the draft of the first early protocol on the taxation of income from cross-border services, as well as the draft second early protocol on the prevention and resolution of tax disputes. Throughout the session, GATJ brought together civil society to make joint interventions and produce daily reactions to the negotiations.

Framework Convention (submission here in English, Spanish, and French)

The submission emphasizes that significant progress has been made since the previous draft, including the addition of some very important governance provisions. However, a number of key issues remain to be addressed before the Convention can match the objective of establishing “an inclusive, fair, transparent, efficient, equitable and effective international tax system for sustainable development”, the mandate of the negotiations.

The following vital components are missing:
– Ensuring equitable taxation of multinational enterprises (ToR para 10(a));
– Key transparency provisions, including a global asset register, beneficial ownership registers and public country by country reporting;
– The special challenges related to environmentally damaging companies, including extractive industries;
– Ensuring compliance and addressing non-cooperative jurisdictions;
– Effective participation of stakeholders at the COP and its subsidiary bodies;
– The objective of reducing inequalities between and within countries, including through progressive taxation;
– Progressive environmental taxation;
– Gender-responsive taxation.

The following elements lack operationalization:
– The link to sustainable development;
– Fair allocation of taxing rights;
– Effective taxation of high-net worth individuals;
– Effective measures to combat harmful tax practices and illicit financial flows.

The submission also welcomes the inclusion of Article 21 on the relation between the Convention and existing international agreements but stresses that the text must be significantly stronger and unambiguous. It also reminds governments that in line with the Terms of Reference (paragraph 21), stakeholders must be able to contribute effectively to the work, including by ensuring full transparency and allowing for observers to present their suggestions throughout the negotiations, including during online meetings.

Protocol 1, taxation of income derived from the provision of cross-border services in an increasingly digitalized and globalized economy (submission here in English, Spanish, and French)

In the submission, concerns are raised about the approach taken. In particular, it is problematic that the current draft strongly resembles a typical bilateral tax agreement aimed at avoiding double taxation. This creates a mismatch with the objectives of the Convention, and rather than promoting reforms and addressing systemic problems, the Protocol risks reinforcing them. Strengthening source country taxing rights related to cross-border services is vital, and the Protocol must deliver truly fair and effective solutions which promote implementation of the Convention.

Specific points were made on:
– The hierarchical allocation of source country taxing rights, which is outlined in the draft, can inadvertently result in cancellation of legitimate claims for source country taxing rights;
– The Protocol must establish a multilateral system that acknowledges, protects, coordinates and can enforce source country taxing rights in multiple countries simultaneously;
– Keeping in mind draft Article 21 of the Convention, the Protocol should integrate the obligation of Parties to ensure alignment between existing tax instruments and the provisions and principles of the Convention;
Furthermore, the Protocol should:
– Introduce the concept of Significant Economic Presence;
– Include a preamble and objective, including to clarify the link to the Convention;
– Include “anti-lock-in” clauses to curb obsolete norms and work toward inclusive, equitable, efficient, and effective rules that truly transform the international tax system within the framework of the Convention.
– Include international shipping and air transport;
– Avoid introducing rights for multinational enterprises.

Protocol 2, prevention and resolution of tax disputes (submission here in English, Spanish, and French)

The submission on Protocol 2 raises fundamental concerns with the approach taken. It remains unclear how Protocol 2 will match the objective of the Framework Convention, and rather than promoting reform and addressing the systemic problems that lead to disputes, the draft Protocol seems focused on enforcing the old system.

Specific points raised include:
– The Protocol should have a preamble and objective, including to clarify the link to the Convention;
– Keeping in mind draft Article 21 of the convention, the Protocol should fully integrate the obligation of Parties to ensure alignment between existing tax instruments and the provisions and principles of the Convention;
– A definition of “double taxation” should be introduced which explicitly guards the ability of Parties to introduce effective rules to combat harmful tax practices and unfair allocation of taxing rights;
Furthermore, the Protocol should:
– Include “anti-lock-in” clauses in this Protocol to curb obsolete norms and work toward inclusive, equitable, efficient, and effective rules that truly transform the international tax system within the framework of the Convention.
– Avoid introducing rights for multinational enterprises (MNEs);
– Reflect principle 9(a) of the ToR by introducing differentiated responsibilities for developing countries;
– Include a mandate to address the problems related to advance rulings for MNEs;
– Have Mutual Agreement Procedure as a core mechanism, but government-togovernment focused;
– Not include the option of arbitration.

For more information on the negotiations: 

• Submissions by goverments and other stakeholders are available on the UN website here.
• From 2025 to mid-2027 negotiations are taking place to develop a global tax treaty, a UN Framework Convention on International Tax Cooperation (UN Tax Convention). The negotiations were initiated by the Africa Group with the support of other Global South countries to address structural flaws in the international tax system, a system characterized by rampant tax abuse by multinational corporations and the rich, a complex web of thousands of bilateral tax treaties, and the exclusion of Global South countries from tax rule-making. These negotiations have been actively championed by GATJ for the potential to create fair and effective global tax rules, unlocking hundreds of billions in public financing urgently needed for development, public services, climate action, and gender equality. The mandate for the negotiations is here.