15 March 2024 - Taxes play a vital role in helping governments deliver key services that benefit both individual citizens and societies. Effective, efficient, and inclusive collaboration on tax matters among nations can drive the mobilization of domestic resources, promote investment, and stimulate economic growth. International tax cooperation is also key in helping countries to finance the Sustainable Development Goals (SDGs).
International tax cooperation is a key part of the Addis Ababa Action Agenda and contributes to building resilient and sustainable economies worldwide. It does this through combatting tax evasion, reducing illicit financial flows, and enhancing financial transparency. It also fosters the equitable distribution of resources, strengthens institutions, and helps to ensure that the benefits of development reach all segments of society.
The ECOSOC Special Meeting on International Cooperation in Tax Matters serves as a global platform for inclusive, evidence-based, and action-oriented discussion on tax issues. Since 2013, this annual gathering brings together UN Member States, the UN Tax Committee, as well as stakeholders from international and regional organizations, business sectors, civil society, and academia. It aims to advance effective fiscal policies that support sustainable development, while making progress toward inclusive, fair, and effective tax systems at all levels.
The 2024 Special Meeting comes as we face a pressing collective need to realign efforts with the SDGs, strengthen institutions amidst technological transformations, and address gaps within the international financial architecture. Participants will delve into two main themes: promoting inclusive and effective international tax cooperation at the United Nations and exploring the role of net wealth taxes in fostering equality and financing the SDGs.
This year’s meeting will contribute to several forthcoming events, including the Financing for Development Forum, the Summit of the Future, and the Fourth International Conference on Financing for Development (FfD4) in 2025. It also provides an opportunity to inform the work of the ad hoc intergovernmental committee tasked with developing draft terms of reference for a United Nations framework convention on international tax cooperation, established by the UN General Assembly.
The first panel discussion on promoting inclusive and effective international tax cooperation at the United Nations follows the organizational session of the ad hoc committee held on 20-22 February 2024. This session will focus on identifying international rules or practices that are the most significant barriers to domestic resource mobilization by developing countries. The panel will also examine how protocols to the framework convention could make substantial progress in addressing two key areas mentioned in the resolution – tax-related illicit financial flows and cross-border services. Finally, the panel will explore how the work towards a UN framework convention on international tax cooperation can complement ongoing initiatives, including reform of the international financial architecture.
The second panel will focus on the role of net wealth taxes in promoting equality and financing the SDGs. As concerns over wealth inequality within and between countries grow, calls for taxing wealth, especially through annual net wealth taxes, have gained momentum. While such taxes can enhance progressivity and encourage productive asset utilization, administering them remains complex. This session will explore policy design, administrative challenges, and the potential for international cooperation in implementing effective net wealth taxes.
The 2024 ECOSOC Special Meeting represents a timely opportunity to address major tax-related issues and advance sustainable development. By fostering dialogue and cooperation, the meeting aims to deliver actionable recommendations to realize the SDGs and promote inclusive, fair, and effective tax systems.