Organization:UN Framework Convention on International Tax Cooperation
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| Formation | 2024 |
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| Headquarters | New York |
| Website | financing |
The United Nations Framework Convention on International Tax Cooperation is a proposed body to coordinate tax policy across the world and tackle the race to the bottom. The UN tax convention was proposed by developing countries for decades and passed via the UN General Assembly in 2023. Championed by developing states via the G77, the UN tax convention is meant to move the debate around global minimum corporate taxation to a more global level.
Previously, this policy area was dominated by the OECD/G20 Inclusive Framework initiative led by rich nations. This initiative culminated in the 2021 agreement of 137 countries to tax large companies at a minimum rate of 15% and provisions to reallocate their taxes to jurisdictions where they have customers but no physical presence. [1] Addressing taxation instead at the UN level would mirror similar UN competencies for sustainable development (the SDGs) and climate (IPCCC and the flagship COP conference).[2][3]
The resolution to establish the UN tax convention was passed in November 2023 at the UN General Assembly's economic affairs committee. 125 states voted in favor, 48 member states voted against it, and nine abstained.[4] Most OECD countries voted against it, except for Chile and Colombia, which voted in favor, and Costa Rica, Iceland, Mexico, Norway and Turkey, which abstained. [5]
The first sessions to draft the terms of reference of the UN tax convention were planned for 2024.[6]
References
- ↑ https://www.oecd.org/tax/beps/statement-on-a-two-pillar-solution-to-address-the-tax-challenges-arising-from-the-digitalisation-of-the-economy-october-2021.pdf
- ↑ "A new UN Tax convention – how will it change global tax governance?" (in en-GB). https://www.ictd.ac/blog/the-new-un-tax-convention-a-critical-juncture-for-global-tax-governance/.
- ↑ "Vote in favour of international cooperation on tax helps advance human rights" (in en). 2023-11-22. https://www.amnesty.org/en/latest/news/2023/11/global-vote-in-favour-of-international-cooperation-on-tax-helps-advance-human-rights/.
- ↑ https://www.un.org/en/ga/second/78/docs/voting/CRP7-Tax_cooperation.pdf
- ↑ https://www.law360.com/tax-authority/articles/1783932
- ↑ "UN Tax Convention | Financing for Sustainable Development Office". https://financing.desa.un.org/un-tax-convention.
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