15 April 2025 UN negotiating committee of Framework Convention on International Tax Cooperation releases roadmap and guidelines
On 4 April 2025, the intergovernmental negotiating committee of the United Nations Framework (UN) Convention on International Tax Cooperation released an initial roadmap and working methods for developing the Framework Convention and two early protocols, along with guidelines for intersessional work. The roadmap outlines a schedule for the development process with milestones for each workstream from March 2025 to July 2027, including dates, responsible entities, actions and documents to be prepared. The intergovernmental negotiating committee plans to convene three sessions annually during this period, with the first substantive session scheduled for August 2025. The roadmap and guidelines contemplate informal consultations between these formal meeting sessions. The guidelines emphasize the importance of clearly defined work plans to prevent duplication and ensure comprehensive input. Additionally, they provide for multi-stakeholder consultations, generally approximately a month in advance of an intergovernmental negotiating committee meeting. An initial public briefing and round of consultations with stakeholders will be organized before the first substantive session in August 2025, with deadlines for completion of all milestones to be before the first session in January 2027. In December 2022, the UN General Assembly adopted Resolution 77/244, which called for the beginning of discussions on ways to strengthen the inclusiveness and effectiveness of international tax cooperation through the evaluation of options, including the possibility of developing an international tax cooperation framework. This work culminated in December 2023 with the UN General Assembly's approval of Resolution 78/230, which provided for the establishment of an ad hoc committee for the purpose of drafting Terms of Reference (ToR) for a UN Framework Convention on International Tax Cooperation. (See EY Global Tax Alert, The Latest on BEPS and Beyond — January 2024, dated 17 January 2024.) In June 2024, the ad hoc committee released a "zero draft" for the ToR, seeking feedback from stakeholders and receiving more than 100 submissions. (See EY Global Tax Alert, The Latest on BEPS and Beyond — July 2024, dated 17 July 2024.) The ad hoc committee discussed and approved by vote on 16 August 2024 a revised ToR for submission to the UN General Assembly. (See EY Global Tax Alert, UN Ad Hoc Committee advances Terms of Reference for a Framework Convention on International Tax Cooperation, dated 22 August 2024.) On 24 December 2024, the UN General Assembly adopted Resolution 79/235, formally approving the ToR for the development of the UN Framework Convention on International Tax Cooperation. This resolution provided for the establishment of an intergovernmental negotiating committee responsible for drafting the Framework Convention and two early protocols. The ToR specifies that one of the early protocols will address the taxation of income derived from the provision of cross-border services in an increasingly digitalized and globalized economy, and it further provides for the subject of the second early protocol to be determined at the organizational session of the intergovernmental negotiating committee. The intergovernmental negotiating committee is scheduled to meet three times each year in 2025, 2026 and 2027, with the expectation of submitting the final text of the Framework Convention and the two early protocols to the General Assembly for consideration in 2027. (See EY Global Tax Alert, UN General Assembly approves Terms of Reference for Framework Convention on International Tax Cooperation, dated 2 January 2025.) In February 2025, the intergovernmental negotiating committee held its organizational session, during which members selected the Bureau for the committee and established a decision-making process. The committee also chose the prevention and resolution of tax disputes as the subject for the second early protocol. (See EY Global Tax Alert, UN intergovernmental negotiating committee on Tax Framework Convention on Tax Cooperation holds organizational session, dated 17 February 2025.) The intergovernmental negotiating committee's Bureau will meet regularly to discuss organizational matters and coordination issues as they arise, providing oversight of intersessional work performed in the workstreams. Bureau members who are not workstream co-leads will participate in two workstreams on a regular basis. The roadmap outlines a schedule for the development process with milestones for each workstream from March 2025 to July 2027, setting out dates, responsible entities, actions and documents to be prepared. The intergovernmental negotiating committee plans to convene three sessions annually during this period, with the first substantive session scheduled for August 2025. This initial roadmap may be adjusted as necessary to reflect any changes in the workstreams or session planning. The roadmap also provides for multi-stakeholder consultations, generally about a month in advance of an intergovernmental negotiating committee meeting. Intersessional work will be organized in three workstreams, one for each of the three legal instruments to be developed, each facilitated by two co-leads:
The Chair will appoint the two co-leads of each workstream based on expressions of interest from member countries, with one co-lead from a developing country and one from a developed country. Each workstream will be open to participation by all member countries. To maintain coherence in concepts and terminology across the Framework Convention and early protocols, the pairs of workstream co-leads will participate in the other workstreams and relevant taskforces on a regular basis. The UN Secretariat will provide support for each of the workstreams. The initial roadmap lays out the overall work plan for delivering on the intergovernmental negotiating committee's mandate. The Chair, in coordination with the Bureau, will issue and update as necessary guidelines for the workstreams. The planned substantive session dates are as follows:
The guidelines outline procedures for developing the Framework Convention and two early protocols through an informal arrangement. The co-leads for each workstream are responsible for developing a work plan for their workstream and establishing a meeting schedule with logistical support from the UN Secretariat. They will provide regular progress reports, at least biweekly, to the Chair and Bureau. They also should keep the Chair informed of any contentious issues that arise that may require additional attention. Work plans should define the scope of the relevant legal instruments to prevent duplication, identify required outputs and outline the order of tasks to be undertaken. The co-leads may assign specific tasks to a task force. The primary output for each workstream will be proposals for Framework Convention or early protocol provisions. The work plans should define clear milestones, such as zero drafts and revised drafts, along with proposed deadlines for each milestone. Every effort should be made to complete milestones by specified deadlines. If there are unanticipated delays with respect to one or more milestones, the workstream co-leads should inform the Chair as soon as possible that an adjustment to the work plan may be necessary. The work plans for Workstreams II and III, covering the two early protocols, should include any anticipated requests for multi-stakeholder inputs during the scoping phase. A first public briefing and round of consultations with stakeholders will be organized before the first substantive session in August 2025. Once work plans have been formulated, the related documentation schedule will be prepared, so that those documents that will be the subject of the consultations are available in advance. All milestones are expected to be completed before the first session in January 2027. The release of the roadmap and guidelines for intersessional work by the intergovernmental negotiating committee provides further information on plans for developing the UN Framework Convention on international tax cooperation and two early protocols. This planned process includes milestones set for 2025, 2026 and 2027. Companies should monitor ongoing developments related to the Framework Convention and the related protocols, as these initiatives may have substantial implications for the international tax landscape. Companies may want to engage with policymakers in relevant jurisdictions to share their perspectives and contribute to the ongoing discussions. Companies also have the opportunity to participate in the multi-stakeholder consultations that will be organized in advance of the intergovernmental negotiating committee sessions. These consultations will offer opportunities to provide feedback on documents that are released in connection with the development of the legal instruments.
Document ID: 2025-0898 | ||||||
