Inside the UN Tax Convention Negotiations
The United Nations Framework Convention on International Tax Cooperation is a proposed international agreement on tax to be established under the UN umbrella. It aims to create a fairer and more effective approach to global tax governance.
With the adoption of the Terms of Reference in December 2024, formal negotiations on the UN Convention on Tax began in early 2025 under the leadership of an Intergovernmental Negotiating Committee (INC). During its organizational session in February 2025, the INC agreed to develop two early protocols alongside the convention: one on cross-border services and another on dispute prevention and resolution.
Negotiating sessions
The first two substantive negotiating sessions were held at UN Headquarters in New York in August, while the third session took place at the UN Office in Nairobi from November 10 to 19, 2025. The INC is expected to convene three times annually until 2027, when the final text of the convention and both protocols are due for submission.
The latest round of negotiations took place in New York from February 2 to 13, 2026.
What happened at the latest round of negotiations in New York?
Negotiations have now moved into detailed drafting: Countries reviewed and provided inputs on the draft text of the UN Convention on Tax and its two early protocols, building on intersessional work.
UN Convention on Tax – Core Text
Article 4 on human rights and sustainable development
Debates on Article 4 revealed persistent divisions over whether sustainable development, inequality, and human rights should be embedded as operational principles or remain high-level guidance, with many countries warning that overly broad language risks either exceeding the convention’s mandate or weakening its practical impact.
Article 5 on the fair allocation of taxing rights
Delegations were sharply divided over how taxing rights should be allocated in a globalized economy. Proposals to recognize taxation where economic activity and markets exist were strongly supported by the Africa Group and several developing countries, while many Global North countries emphasized legal certainty and cautioned against language that could require a renegotiation of existing bilateral tax treaties.
Articles 8 on harmful tax practices, 11 on the exchange of information, and 12 on capacity building and technical assistance
Discussions advanced on the practical implementation of provisions on harmful tax practices, focusing in particular on the role of administrative cooperation and exchange of information as enabling mechanisms—in particular, harmful tax practices, administrative cooperation, and exchange of information. Delegates disagreed on how harmful practices should be defined and whether transparency commitments should stand as core convention obligations or be deferred to protocols. Developing countries emphasized that administrative assistance and information exchange are essential to avoid reproducing existing inequalities in access to tax cooperation systems, while others favoured a more flexible framework approach.
Protocol 1 on taxing cross-border services
Countries focused on defining nexus rules for taxing cross-border and digital services, with stakeholders debating criteria to include, such as payment source, user location, permanent establishment, or significant economic presence. Meanwhile, implementation—especially concerning whether the protocol should override existing bilateral treaties—became the defining political fault line. Progress was made in clarifying options, but no consensus was reached on the legal architecture needed to translate ambition into workable rules.
Protocol 2 on dispute prevention and resolution
Countries examined a broad menu of options for preventing and resolving cross‑border tax disputes under Protocol 2, looking at which mechanisms should be included in the protocol and whether they should be mandatory or optional. On dispute resolution tools, the list included mutual agreement procedures, conciliation, and mediation, which attracted broad support. Arbitration remained contentious, with many low- and middle-income countries opposing mandatory mechanisms to avoid transferring sovereignty to external tribunals, while others viewed them as necessary for certainty.
Need to Know
A Roadmap for Negotiating the Protocols to the United Nations Framework Convention on Tax
This report examines the early protocols on cross-border services taxation and dispute resolution, as well as other identified priorities and potential protocols under the UN Framework Convention on Tax. For each protocol, it outlines its importance, reviews ongoing efforts, identifies challenges faced, and assesses how the Convention could advance the issue.
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Side Event: Tax Dispute Resolution Under the UN Convention on Tax: Lessons from investment arbitration
Webinar: Next Steps for the UN Convention on Tax
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UN Tax Convention: What happened at recent negotiations, and what’s next?
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