International Cooperation in Taxation: Towards a More Inclusive Global Tax Order
As negotiations for a new framework convention on international tax cooperation are underway at the UN, the topic was recently debated in Tunis.
A Colloquium on International Tax Cooperation
A international colloquium on the negotiations for a new framework convention on international tax cooperation, bringing together academics, experts, and representatives of tax administrations from several African countries, including the Maghreb region, was jointly organized by the Laboratory of Constitutional, Administrative, and Financial Sciences (Lascaf) of El Manar University and the Tunisian Observatory of the Economy (OTE). The new framework convention aims to establish a more inclusive global tax order, ensuring the effective participation of developing countries in the development of international tax rules. This process comes a few years after the OECD's introduction of the Multilateral Convention in 2017 and the establishment of an inclusive framework that now brings together 148 countries. Its primary objective is to combat aggressive tax optimization.
In 2022, the two-pillar solution sought to address the challenges of digital taxation, but its impact remains limited for developing countries, according to the observatory. These limitations have revived the demand for a more democratic global tax governance, it is explained.
A New Convention-Cadre
It is in this context that, under the impetus of the African group, the UN General Assembly adopted Resolution 78/230 in 2022, paving the way for lengthy discussions that should lead to the adoption of the new framework convention by the end of 2027, with the terms of reference adopted in December 2024. "This colloquium represents an opportunity to bring together experts, academics, and representatives of civil society around a theme as crucial as this, in connection with other issues, such as the application of conventions, whether they relate to the OECD model or the UN model," said Emna Fakhfakh, coordinator of the event and associate professor at the Faculty of Law and Political Science.
A Process Under Construction
Looking back on the current negotiations at the UN, Sara Gnzar, representative of the Moroccan tax administration, indicated that the discussions are marked by tensions and divisions between the bloc of developed countries and that of developing countries. The terms of reference having been adopted in December 2024, the process is now halfway through. However, in February 2025, the United States announced its withdrawal from the negotiations, stating that "the future objectives of the framework convention are incompatible with their priorities." "It was a moment of ambiguity and confusion. But the states resumed discussions the next day," Gnzar specified.
She added: "The African Group has clearly stated that it does not want to reproduce old structures or reinforce existing imbalances, but to co-create a new, fair, and transparent system, respecting the right of each state to collect revenue from its economic activity."
Combating Tax Fraud
Articulating his intervention around the challenges of adapting the national tax framework to the reforms undertaken by the OECD, Yahia Chemlali, Director General of Tax Studies and Legislation at the Ministry of Finance, specified that Tunisia is currently participating in the work related to the new UN framework convention, calling for an acceleration of the negotiation process so that developing countries can achieve their tax objectives.
He recalled that after Tunisia's accession to the OECD's BEPS instrument in 2017, the country had renounced the privileged tax regime for export operations, particularly for financial services intended for non-residents, in 2021. The reforms undertaken under this instrument, he added, are in line with Tunisia's tax policy, which aims to control tax benefits that have become a niche for fraud, particularly in the services sector, where control is extremely difficult. He emphasized that these benefits had allowed many service companies to benefit from "double non-taxation."
Chemlali also recalled that Tunisia had suspended the suspensive regime for international trade companies and fully export-oriented service enterprises, a decision that contributed, according to him, to limiting unfair competition in the domestic market, but above all to combating VAT-related fraud.
Challenges Ahead
The official also specified that adapting to OECD reforms has raised technical challenges for Tunisia, which has expressed a need for capacity building and better access to databases. These reforms, according to him, also pose challenges in terms of competitiveness and attractiveness of the territory, obliging to arbitrate between improving attractiveness through tax incentives and compliance with international standards limiting tax competition.
"In this context, Tunisia wants to respect both its strategic choice in terms of tax policy, using taxation to stimulate investment, and its compliance with international standards, a guarantee of credibility," he added.
Chemlali also recalled that the implementation of the "two-pillar solution" initiated by the OECD in 2021 requires a profound overhaul of Tunisian legislation and affects the country's tax sovereignty. "The proposed solutions risk not taking into account the needs of developing countries. The complex implementation, with the need to provide transitional measures, requires more time to study these proposals. We have identified which exclusions need to be made and which should be canceled so that this solution can be applied," he affirmed.
