The UN Economic and Social Council (ECOSOC) has discussed a potential UN framework to address cross-border service taxation, including withholding and digital services taxes, in a special tax meeting on 28 March 2025.
The Special Meeting of the Economic and Social Council (ECOSOC) on International Cooperation in Tax Matters will address global challenges related to tax policies and international tax cooperation. This special meeting will gather high-level policymakers, experts, and representatives from various countries and international organizations to discuss and develop strategies for improving tax systems and cooperation across borders.
Main points of discussion
- Promoting inclusive and effective international tax cooperation;
- Advancing gender inclusivity through tax policy design and implementation;
- A demand for more precise definitions of cross-border services;
- Developing countries struggle to tax digital services due to the lack of physical presence and challenges in treaty negotiations with developed nations;
- The need to build capacity in tax administrations in developing countries to improve tax management and collection;
- Discussion about issues related to withholding taxes on cross-border services, which may raise short-term revenues but also increase business costs and deter investment;
- The importance of a multilateral approach to international tax cooperation.
