In 2023, the United Nations General Assembly adopted a landmark resolution to begin negotiations on a new UN Tax Convention. This process marks a pivotal moment in efforts to reform the global tax system, aiming to make international tax governance more inclusive, transparent, and responsive to the needs of all countries – not just the wealthiest.
For low- and middle-income countries, international tax rules have often been shaped without sufficient representation or consideration of their realities. The convention negotiations offer a unique opportunity to address this imbalance and design a system that better supports domestic resource mobilisation, the most sustainable source of financing development.
Negotiations formally began in early 2025 and are expected to continue through 2027. Alongside the main convention, states are also negotiating two initial protocols: one on the taxation of cross-border services, and another on dispute prevention and resolution. Together, these instruments aim to create a more equitable and coherent framework for international tax cooperation.
ICTD is closely monitoring the developments and providing analysis and insights grounded in over a decade of research in lower-income countries.