UN wants in on the tax action
Diplomats packed into Nairobi this week, and it wasn’t for a safari. Negotiators are hammering out a United Nations global tax convention designed to reroute more of multinationals’ and ultra-wealthy individuals’ profits toward climate finance and sustainable development. If the pact sticks, it could reset who gets to tax what and undercut the OECD’s long-standing dominance in international tax rule-making, Business AM reports.
The draft would re-allocate taxing rights so that lower-income countries capture a larger slice of cross-border profits. Backers say the extra revenue could help close the yawning climate-finance gap without piling on new debt. Negotiators are also floating minimum standards for taxing high-net-worth individuals, plus mandatory information-exchange rules.
Why now? Momentum has been building as developing nations argue the two-pillar OECD deal doesn’t move the needle fast enough. A UN-led framework, they contend, would be more inclusive and laser-focused on financing green transitions.
The reaction was swift: OECD officials warned of “fragmentation,” while civil-society groups cheered what they call a historic course-correction for global tax governance. Expect more fireworks when the draft text lands on finance ministers’ desks early next year.
Around the Tax World
- Carbon pricing keeps climbing. The OECD’s new Effective Carbon Rates 2025 finds that taxes and trading schemes now cover 44% of global greenhouse-gas emissions, up from 37% two years ago ( OECD ).
- Treaty tune-up in the Gulf. Kuwait and Jordan inked a protocol updating their 2001 double-tax deal to curb abuse, boost information exchange, and align with post-BEPS standards ( KUNA ).
- Vietnam’s incentive rethink rattles investors. Samsung says proposed tax reforms that scrap perks for high-tech exporters could push production costs higher and divert new capital, according to Cryptopolitan.
- Fuel excise is still king. Despite the ETS boom, old-school fuel duties remain the world’s most common carbon-pricing tool, the OECD told Law360.
Tax Stat of the Day
44%, Share of global GHG emissions now subject to a carbon price, per the OECD’s latest survey.
Looking Ahead
All eyes are on the next UN working session in early 2026, where negotiators will decide whether the draft convention goes to a full General Assembly vote.