UN talks aim to raise $500 bn yearly via new global corporate tax

UN negotiators have resumed talks on a Framework Convention on International Tax Cooperation that would replace the current "pay‑where‑you‑say" system with a "pay‑where‑you‑play" model. The proposal would tax multinational corporations where they actually employ workers and make sales, shifting profits from tax havens to the countries where economic activity occurs. A joint study by the Tax Justice Network and Public Services International estimates the change could generate an extra $500 billion in corporate tax revenue each year without any jurisdiction raising its tax rate.

High‑income nations stand to gain the most in cash terms – the United Kingdom could collect about £13 billion annually, enough to fund most of an NHS‑style social‑care system, while the United States would see an additional $35.5 billion despite having withdrawn from the talks. Lower‑middle‑income and low‑income countries could see their revenues triple or even increase five‑fold. The UN aims to have a global tax standard in place by late 2027, with protocols that would also allow taxation of digital services and shift dispute resolution from secretive investor‑state arbitration to a more transparent UN‑led process.