U.N. Fields Diverse Tax Committee Suggestions

"Over the past several years, the committee has dedicated quite a bit of work to increasing the source taxation of cross-border services, including the creation of article 12AA, which combines two previous treaty articles - 12A and 14 - and allows for the gross basis taxation of cross-border services. Another such measure is article 12C, which addresses the taxation of insurance premiums, and was created by the previous committee."

"The international tax community not only has some answers, but it seems energized: 43 stakeholders responded to the secretariat's call, which is nearly triple the amount of responses it received for a similar request four years ago. This time, issues like dispute resolution, tax administration reform, and remote work seem to rank highly for stakeholders. So do issues surrounding environmental taxation and the taxation of climate change."

The new U.N. Tax Committee will host its first session and determine a four-year work plan. The committee's secretariat asked the public to share feedback on work priorities. The committee previously created article 12AA, which combines articles 12A and 14 to allow gross-basis taxation of cross-border services, and article 12C addressing taxation of insurance premiums. The committee must navigate developments including the OECD two-pillar project and U.N. negotiations on a framework convention for international tax cooperation. Forty-three stakeholders responded, nearly triple the prior total. Top stakeholder priorities include dispute resolution, tax administration reform, remote work, environmental taxation, and climate-related taxation. The secretariat released a provisional agenda with five potential priority items.

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