International Talks on Tax Cooperation Take Center Stage.

The Intergovernmental Negotiating Committee on international tax cooperation recently held its organizational session, marking the start Tax Cooperation of a three-year process to arrange a framework conference and two protocols on key global tax issues.

These agreements aim to reshape the international financial system and address critical issues such as tax base erosion, profit shifting, and tax escape, which have been particularly challenging for developing countries in their efforts to generate sustainable revenue.

The meeting, which took place at UN Headquarters in New York from February 3–6, 2025, was attended by over 250 government representatives and onlookers.

The INC’s primary task during this session was to establish the Tax Cooperation decision-making rules that will govern future discussions, both within the committee and under the framework convention and its protocols.

Delegates agreed on a two-thirds majority voting system for decision-making when agreement cannot be reached, a compromise between those, like the African Group, who favored a simple majority, and others, including the European Union, who pushed for unison-based decisions.

One of the key outcomes of the session was the selection Tax Cooperation of the second protocol’s focus: the avoidance and resolution of tax disputes. The INC also agreed on rules for multi-stakeholder participation, a step towards making the process more inclusive.

Developing countries, in particular, see the UN-led convention as a vital step toward “tax justice,” offering a more equitable platform for decision-making—especially for nations that have traditionally been excluded from global tax discussions.Despite these achievements, there were some setbacks. Many delegates were disappointed by the lack of progress on practical matters, such as setting dates for future meetings and establishing specific workstreams for the compromise.

However, the INC Chair mentioned that plans are underway to address these issues in the upcoming session.The negotiations are expected to play a significant role in advancing the UN’s Sustainable Development Goal 16, which focuses on peace, justice, and strong institutions.

While the process is still in its early stages, the steps taken during this meeting show the international community’s growing commitment to tackling global tax challenges and ensuring fairer systems for all countries.However, it’s worth noting that the US delegation announced at the start of the meeting that it does not plan to participate further in the INC, adding an element of uncertainty to future discussions.

The road ahead will be long and complex, but the first Tax Cooperation session of the INC marks a crucial step in a global effort to reform tax policies for a more just and equitable future.Global tax rules are under the spotlight as international compromise get underway to create a more equitable system.

The first session of the Intergovernmental Negotiating Committee (INC) on international tax cooperation has kicked off, marking the start of a three-year process to establish a framework convention and two protocols aimed at tackling key tax challenges.

The discussions, held at the UN Headquarters in New York Tax Cooperation from February 3–6, 2025, brought together over 250 government delegates and observers. The goal? To address tax base erosion, profit shifting, and tax evasion—issues that disproportionately impact developing countries trying to build sustainable revenue systems.

A Push for Tax JusticeFor many developing nations, these negotiations represent a critical step toward “tax justice.” Historically, global tax policies have been shaped by wealthier nations and institutions, often leaving developing countries with little say in the decision-making process.

A UN-led tax convention, they argue, provides a more Tax Cooperation inclusive and balanced approach to international tax rules.During the session, one of the key points of contention was how decisions would be made.

The African Group and several others pushed for a simple majority vote to ensure a fair and republican process, while the European Union and others favored agreement-based decision-making. In the end, a arrangement was reached: when consensus isn’t possible, decisions will require a two-thirds majority vote.This decision was met with mixed reactions.

Some saw it as a win for inclusivity, ensuring that no single country or group can dominate the process. Others, however, worried that a voting system could slow down broad adoption and implementation of any future agreements.