E/2025/45*-E/C.

18/2024/4*

United Nations

Committee of Experts on
International Cooperation in
Tax Matters
Report on the twenty-ninth session
(Geneva, 15–18 October 2024)

Economic and Social Council

Official Records, 2025
Supplement No. 25
E/2025/45*-E/C.18/2024/4*
Economic and Social Council E/2025/45*-E/C.18/2024/4*
Official Records, 2025
Supplement No. 25

Committee of Experts on International

Cooperation in Tax Matters
Report on the twenty-ninth session
(Geneva, 15–18 October 2024)

United Nations • New York, 2025

* Reissued for technical reasons on 12 May 2025.

Note

Symbols of United Nations documents are composed of letters combined with

figures. Mention of such a symbol indicates a reference to a United Nations document.

ISSN 1728-0036
Contents
Chapter Page

I. Matters calling for action by the Economic and Social Council . . . . . . . . . . . . . . . . . . . . . . . . . 4

A. Draft decision for adoption by the Council on the venue, dates and provisional agenda
of the thirtieth session of the Committee of Experts on International Cooperation in Tax
Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
B. Draft decision for adoption by the Council on a proposed fast-track instrument to
provide for the streamlined amendment of bilateral double taxation treaties . . . . . . . . . . 5
II. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Provisional agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
III. Organization of the session . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Opening of the twenty-ninth session and adoption of the agenda . . . . . . . . . . . . . . . . . . . . . . . . 7
IV. Discussion and conclusions on substantive issues related to international cooperation in tax
matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
A. Procedural issues for the Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
B. Taxation and the Sustainable Development Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
C. Issues related to the United Nations Model Double Taxation Convention between
Developed and Developing Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
D. Update of the United Nations Manual for the Negotiation of Bilateral Tax Treaties
between Developed and Developing Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
E. Transfer pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
F. Taxation of the extractive industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
G. Environmental taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
H. Dispute avoidance and resolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
I. Taxation issues related to the digitalized and globalized economy . . . . . . . . . . . . . . . . . . . 14
J. Taxation of cryptoassets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
K. Digitalization and other opportunities to improve tax administration . . . . . . . . . . . . . . . . 17
L. Increasing tax transparency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
M. Wealth and solidarity taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
N. Indirect tax issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
O. Health taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
P. Relationship of tax, trade and investment agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Q. Capacity-building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
R. Other matters for consideration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

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Chapter I
Matters calling for action by the Economic and
Social Council
A. Draft decision for adoption by the Council on the venue, dates and
provisional agenda of the thirtieth session of the Committee of
Experts on International Cooperation in Tax Matters

1. The Committee of Experts on International Cooperation in Tax Matters

recommends that the Economic and Social Council review and adopt the following
draft decision:

Venue, dates and provisional agenda of the thirtieth session of the

Committee of Experts on International Cooperation in Tax Matters

The Economic and Social Council

(a) Decides that the thirtieth session of the Committee of Experts on
International Cooperation in Tax Matters will be held in New York from 24 to
27 March 2025;
(b) Approves the provisional agenda for the thirtieth session of the
Committee, as set out below:

Provisional agenda of the thirtieth session of the Committee of Experts on

International Cooperation in Tax Matters
1. Opening of the session by the Co-Chairs.
2. Adoption of the agenda and organization of work.
3. Discussion of issues related to international cooperation in tax matters:
(a) Procedural issues for the Committee;
(b) Taxation and the Sustainable Development Goals;
(c) Issues related to the United Nations Model Double Taxation
Convention between Developed and Developing Countries;
(d) Update of the United Nations Manual for the Negotiation of
Bilateral Tax Treaties between Developed and Developing
Countries;
(e) Transfer pricing;
(f) Taxation of the extractive industries;
(g) Environmental taxation;
(h) Dispute avoidance and resolution;
(i) Taxation issues related to the digitalized and globalized economy;
(j) Taxation of cryptoassets;
(k) Digitalization and other opportunities to improve tax
administration;

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(l) Increasing tax transparency;

(m) Wealth and solidarity taxes;
(n) Indirect tax issues;
(o) Health taxes;
(p) Relationship of tax, trade and investment agreements;
(q) Capacity-building;
(r) Other matters for consideration.
4. Provisional agenda of the thirty-first session of the Committee.
5. Arrangements for adopting the report of the Committee on its thirtieth
session.

B. Draft decision for adoption by the Council on a proposed fast-

track instrument to provide for the streamlined amendment of
bilateral double taxation treaties

2. The Committee of Experts on International Cooperation in Tax Matters

recommends that the Economic and Social Council review and adopt the following
draft decision:

Proposed fast-track instrument to provide for the streamlined

amendment of bilateral double taxation treaties

The Economic and Social Council

(a) Notes the document entitled “Fast-track instrument to provide for the
streamlined amendment of bilateral double taxation treaties” as finalized by the
Committee of Experts (E/C.18/2025/2);
(b) Invites Member States that wish to facilitate the implementation, in
existing bilateral treaties, of specific provisions of the United Nations Model Double
Taxation Convention between Developed and Developing Countries, to take the
document forward with a view to the adoption of a multilateral instrument based on
that document.

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Chapter II
Introduction
3. Pursuant to Economic and Social Council resolutions 2004/69 and 2017/2 and
decision 2024/330, the twenty-ninth session of the Committee of Experts on
International Cooperation in Tax Matters was held in Geneva from 15 to 18 October
2024. The in-person session was attended by 23 members of the Committee and 210
registered observers.
4. The present report serves to summarize Committee discussions and decisions
taken on the items set out in the provisional agenda of the Committee at its twenty -
ninth session, as adopted by the Committee (E/C.18/2024/3), as follows:

Provisional agenda

1. Opening of the session by the Co-Chairs.

2. Adoption of the agenda and organization of work.
3. Discussion of issues related to international cooperation in tax matters:
(a) Procedural issues for the Committee;
(b) Taxation and the Sustainable Development Goals;
(c) Issues related to the United Nations Model Double Taxation
Convention between Developed and Developing Countries;
(d) Update of the United Nations Manual for the Negotiation of Bilateral
Tax Treaties between Developed and Developing Countries;
(e) Transfer pricing;
(f) Taxation of the extractive industries;
(g) Environmental taxation;
(h) Dispute avoidance and resolution;
(i) Taxation issues related to the digitalized and globalized economy;
(j) Taxation of cryptoassets;
(k) Digitalization and other opportunities to improve tax administration;
(l) Increasing tax transparency;
(m) Wealth and solidarity taxes;
(n) Indirect tax issues;
(o) Health taxes;
(p) Relationship of tax, trade and investment agreements;
(q) Capacity-building;
(r) Other matters for consideration.
4. Provisional agenda of the thirtieth session of the Committee.
5. Arrangements for adopting the report of the Committee on its twenty -ninth
session.

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Chapter III
Organization of the session
Opening of the twenty-ninth session and adoption of the agenda

5. The Director of the Financing for Sustainable Development Office, Shari

Spiegel, delivered an address as a representative of the Secretary -General.
Ms. Spiegel welcomed members and observers to the session and noted that the
Committee was in a crucial phase of delivering on its ambitious programme of work
for the 2021–2025 period. She observed that, throughout its mandate, the Committee
had provided practical guidance that promoted inclusive and effective international
tax cooperation, with a particular focus on issues and solutions for developing
countries.
6. Ms. Spiegel indicated that solutions developed by the Committee could help to
shape discussions among Member States in the lead-up to the Fourth International
Conference on Financing for Development, to be held in Seville, Spain. While noting
that any intergovernmental discussion on the United Nations framework convention
on international tax cooperation and its protocols would continue in a different forum,
she acknowledged the role of the Committee in enabling that process to take root and
to address tax from a holistic, sustainable development perspective.
7. The Co-Chair, Liselott Kana, thanked Ms. Spiegel for her remarks. She then
presided over the adoption of the agenda, which was adopted without amendment.

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Chapter IV
Discussion and conclusions on substantive issues related to
international cooperation in tax matters
A. Procedural issues for the Committee

8. Participants in the session were advised that, in a closed meeting of the

Committee of Experts on International Cooperation in Tax Matters, the
Co-Coordinators of the Working Group on Procedural Issues, Ms. Kana and Carlos
Protto, had indicated that the Committee had discussed and agreed upon two earlier
identified issues under the Group’s mandate: (a) the need to clarify that the practices
and working methods were intended to be applied with some flexibility when the
Committee considered that that would enable it to more effectively meet its mandate;
and (b) the addition of a description of the procedure for recording the minority view
when fewer than 25 members were present. Mr. Protto indicated that there remained
a small number of further issues for consideration relating to the Committee’s
practices and working methods, which would be presented for consideration at the
thirtieth session.

B. Taxation and the Sustainable Development Goals

9. Ms. Spiegel delivered remarks on taxation and the Sustainable Development

Goals in a pre-recorded video. She underscored the urgent crisis in sustainable
development, noting that, at the current pace, nearly 600 million people could still be
living in extreme poverty by 2030. That crisis stemmed from a substantial financing
gap, with trillions of dollars needed annually to support the achievement of the
Sustainable Development Goals and climate action in developing countries.
10. Ms. Spiegel emphasized the essential role of domestic public resources in
helping to address the financing crisis, as highlighted in the 2015 Addis Ababa Action
Agenda. She pointed out that resilient fiscal systems, encompassing both tax and
expenditure, were crucial not only for the reduction of poverty and the promotion of
equity, but also for the stabilization of economies and the encouragement of
sustainable behaviours, ultimately reducing the overall financing gap.
11. Ms. Spiegel expressed hope that the Fourth International Conference on
Financing for Development, to be held in Seville, Spain from 30 June to 3 July 2025,
would catalyse progress, converting commitments for domestic tax reforms into
concrete actions to create fairer, more transparent, efficient and effective tax systems.
That shift would require renewed efforts to leverage technology, strengthen
administrative capacities, enhance transparency and combat tax evasion. The
Conference would build on the recent Summit for the Future and The Pact for the
Future, both of which emphasized the need for a supportive environment at all levels
to mobilize domestic resources and encourage strengthened international tax
cooperation.
12. Ms. Spiegel concluded by emphasizing the pivotal role of the Committee, whose
practical guidance addressed the needs of developing countries with simple-to-
administer options, helping them to strengthen fiscal systems and mobilize resources.
She also recognized that a United Nations framework convention on international tax
cooperation could further foster a fully inclusive and more effective international tax
system that supported sustainable development. The Co-Chair, Mathew Gbonjubola,
expressed his appreciation for Ms. Spiegel’s observations and his gratitude for her
remarks.

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C. Issues related to the United Nations Model Double Taxation

Convention between Developed and Developing Countries

13. One of the three Co-Coordinators of the Subcommittee on Updating the United
Nations Model Double Taxation Convention between Developed and Developing
Countries, Stephanie Smith (along with Rasmi Das and Carlos Protto), provided an
update on the Subcommittee’s progress on its workplan. Ms. Smith noted that projects
relating to a subject-to-tax rule and the treatment of computer software had already
been completed during the current membership of the Committee.
14. Ms. Smith then presented a note on technical issues arising under article 6
(E/C.18/2024/CRP.30) for first discussion. The note included proposed changes to the
text of article 6 of the Model Convention and to its commentary to address technical
issues relating to the definition of immovable property and the effect on residence
State taxation of the allocation rule of article 6. There were no comments on the
clarification provided regarding the second issue, which simply stated that taxation
by the situs State did not prevent taxation by the residence State.
15. With respect to the proposed change to the definition and the commentary, while
some Committee members and Member State observers expressed support for the
change, some questions were raised about whether the explanation in the proposed
commentary could require an historical approach to interpreting the provision, rather
than an ambulatory approach. It was also questioned whether a reference to context
would be helpful in that case, and it was noted that the proposed change to the
definition could raise uncertainty even in cases where there was no current
uncertainty. It was agreed that the Subcommittee would review the drafting, and the
possible relevance of the Vienna Convention on the Law of Treaties, to ensure that
the proposed change to the definition and the explanation in the c ommentary
supported the desired result.
16. Mr. Protto next presented a note on the treatment of income from cross-border
insurance activities (E/C.18/2024/CRP.32) for discussion and final approval. At the
twenty-eighth session, the Subcommittee had proposed a new article 12C to replace
existing article 5 (6), which deemed a permanent establishment to exist as a result of
certain insurance activities. The new article 12C would allow taxation of insurance
premiums on a gross basis. At the twenty-eighth session, observers had made a
number of technical comments regarding (a) the application of the beneficial
ownership rule in the case of reinsurance; (b) the scope of the article; and (c) the
proposed alternative source rule based on location of risk. The text of the proposed
article had been modified and additional guidance had been added to the proposed
commentary to address those technical concerns.
17. Observers raised primarily technical issues, this time focused on new
commentary regarding the application of the beneficial ownership rule in the case of
fronting companies and the location of risk. The Committee approved the text of
article 12C, subject to clarification of the commentary on the technical issues raised
during the Committee session.
18. The Committee continued its discussion of a proposal for revisions to article 8
of the Model Convention (E/C.18/2024/CRP.29). Mr. Das explained that the
Subcommittee proposed maintaining two alternatives in the Model Convention, one
being an option for shared taxing rights over income from international traffic and the
other providing for exclusive residence State taxation. Many Committee members
expressed support for the provision of such options, given the strong views on both
sides expressed at earlier Committee sessions. A number of members also expressed
the view that international air transport should not be included in the rule allowing
for shared taxing rights and they therefore would be aligning with the minority

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position set out in the proposed commentary. That position regarding international air
transport was shared by some Member State observers and other observers.
19. The Committee approved the approach set out in the note. However, the
Subcommittee was asked to clarify the commentary and the text of article 8
(alternative A), if necessary, regarding (a) the treatment of journeys by air that
involved multiple legs; (b) a circularity issue regarding the interaction of the
definition in paragraph 3 and article xx; and (c) and the implications of including
subparagraph 2 (a) if one or both parties to a bilateral convention did not tax on a net
basis.
20. Ms. Smith then presented a note on the treatment of income arising from
extractives and other natural resources (E/C.18/2024/CRP.31) for discussion and
approval. The note set out a slightly revised version of the proposed new article 5A
with its draft commentary. The new article would establish lower thresholds for
source State taxation with respect to certain natural resource activities. Changes in
the draft addressed some comments on relatively minor issues raised at the twenty-
eighth session. The proposed article 5A would cover renewable as well as
non-renewable resources and disapplied article 8 with respect to international
transport relating to such resources if those activities continued in a jurisdiction for
more than 30 days. Various minority positions had been accommodated in the
proposed commentary.
21. One Committee member asked whether additional guidance should be provided
on the treatment of mineral royalties. Ms. Smith responded that the issue was more
closely related to the definition of “income from immovable property” in article 6 and
suggested that it be included in the Committee’s suggestions for topics that might be
taken up by the next membership. Ms. Smith also answered questions from an
observer regarding the scope of the provision and agreed that the Subcommittee
would consider editorial and technical comments raised by observers during the
editorial processes on the text. Subject to those minor editorial matters, the
Committee approved new article 5A and its commentary.

D. Update of the United Nations Manual for the Negotiation of

Bilateral Tax Treaties between Developed and Developing Countries

22. The Co-Coordinators for the Subcommittee tasked with updating the United
Nations Manual for the Negotiation of Bilateral Tax Treaties, Aart Roelofsen and
Mr. Protto, noted that the Subcommittee had hoped to meet to start addressing the
changes made to the Model Convention by the current membership of the Committee,
as had been suggested in earlier Committee sessions. However, such a meeting had
not been possible. A Committee member remarked that it was understandable that the
update of the Manual would need to pass to the next membership because so much
had been decided and would be decided at the twenty-ninth and thirtieth sessions.
Several members expressed their willingness to support the update of the Manual
during the next membership, even if they were no longer members of the Committee.

E. Transfer pricing

23. The Co-Coordinator of the Subcommittee on Transfer Pricing, Ingela Willfors,

presented the progress report on the work performed by the Subcommittee , as
contained in the Co-Coordinators’ report (E/C.18/2024/CRP.24). She then presented
the paper on dispute resolution in appendix A for approval and noted that the guidance
focused on advance pricing agreements and was structured in the form of frequently
asked questions.

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24. The Co-Coordinators’ report covered why and when an advance pricing
agreement programme should be implemented; what the legal framework should be;
how the programme should be integrated into a country’s tax administration; and
procedural issues. In response to the feedback from members and observers at and
following the previous session, the paper had been amended to include a strengthened
section on the relationship between an audit and an advance pricing agreement, how
to handle information obtained during the negotiation of an advance pricing
agreement and a nuanced discussion on whether to publish such agreements. Two
appendices on key elements of guidance on advance pricing agreements and further
information and reading materials had been added.
25. Ms. Willfors then presented, for approval, the work of the Subcommittee on a
list of potential questions that could be used during a function, asset and risk analysis
of the controlled entity and its related-party transactions in the pharmaceutical sector,
as contained in appendix B to the Co-Coordinators’ report. She noted that, once
approved, the list of questions would be added as an appendix to the already approved
guidance on transfer pricing in the pharmaceutical industry. In response to previous
feedback from members and observers, the scope of the questions had been extended
from a focus on distribution entities to include the following stages of the value chain
of pharmaceutical industries, namely, research and development, manufacturing,
marketing and sales, supply chain management, and registration and regulatory
affairs. Lastly, some language had been introduced to guide the reader in tailoring the
questions to a specific case.
26. Members and observers thanked the Subcommittee for its work and noted that
the guidance was highly relevant. With respect to appendix A, one observer requested
the addition of a section that discussed domestic law requirements relevant to the
question of under which circumstances could an advance pricing agreement be
requested, terminated or renegotiated. It was also suggested that countries should
monitor the number of advance pricing agreement applications, the length of
negotiations and the number granted.
27. With respect to appendix B, a member suggested that a question be added as to
which entity bore risks with regard to lawsuits and that the questions under the
heading “general documents” be expanded to include other group agreements with
third parties. The Committee approved the guidance and the appendix, subject to the
comments raised during the session being addressed and any necessary editorial work.

F. Taxation of the extractive industries

28. The Co-Coordinator of the Subcommittee on Extractive Industries Taxation,

Nana Mensah, presented the Co-Coordinators’ report (E/C.18/2024/CRP.40), which
provided an update on the Subcommittee’s activities since the twenty-eighth session.
She emphasized the Subcommittee’s continued focus on addressing tax-related
challenges within the extractive industries and presented (with additional comments
from some of those involved in the drafting) an overview of draft papers on the
following workstreams, which were being submitted for feedback:
(a) Product valuation: The paper discussed the importance of accurate product
valuation to prevent profit-shifting in the natural-resources sector and explored
methods and challenges for tax administrations in addressing such issues effectively;
(b) Energy transition: The paper examined the complex intersection of tax
policy and practice with the evolving landscape of energy transition, with a particular
emphasis on energy production;

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(c) Tax incentives: Presented as a supplement to “Chapter 5: Tax Incentives”

of the United Nations Handbook on Selected Issues for Taxation of the Extractives
Industries by Developing Countries, the paper analysed the potential impact of the
global minimum tax on tax incentives typically offered to investors in the extractive
industries.
29. In discussing the paper on product valuation, several members and observers
emphasized the importance of coordination with the Subcommittee on Transfer
Pricing, especially on issues relating to advance pricing agreements and the potential
application of the so-called “sixth method” for transfer pricing, and called for more
references to the United Nations Practical Manual on Transfer Pricing for Developing
Countries. One member highlighted the need for practical guidance to help tax
administrations address valuation challenges and suggested including strategies for
overcoming such issues. Another member raised concerns about potential
manipulation in quotation periods, recommending mechanisms such as the sixth
method and advance recording of contracts as safeguards. Additional feedback from
members included suggestions in respect of considering the impact of tax stability
agreements on product valuation, cautioning against oversimplifying advance pricing
agreements without fully understanding their long-term implications for fair and
sustainable concessions. To remain balanced and relevant over time, advance pricing
agreements should include an option for periodic review, including on royalties. There
was also a need for more discussions on product quality control and laboratory needs.
Observers proposed that section 2 be expanded to detail the role of marketing and
trading entities in the value chain in order to better inform policy development,
integrating article 9 as a legal basis for advance pricing agreements, and that the
guidance should suggest having mandatory disclosure requirements for companies
using marketing hubs in order to improve audit effectiveness.
30. In discussing the paper on energy transition, one member noted that inadequate
labour protections in developing countries could be exacerbated by the energy
transition and suggested that tax benefits be conditioned on companies improving
workers’ conditions in order to mitigate potential human rights abuses. Another
member highlighted the challenge that jurisdictions faced in balancing the urgent need
for energy access with the promotion of clean energy production, stressing the
importance of comprehensive approaches and detailed country experiences to provide
readers with a thorough understanding. One member cautioned that reducing fossil
fuel use could disproportionately affect vulnerable communities and urged that policy
recommendations be designed to avoid adverse effects. An observer called for a more
balanced presentation of solutions and recommended a deeper analysis of the risks
and costs associated with such measures as carbon capture and storage. Another
observer proposed that the part of the paper referring to the taxation of international
aviation for revenue generation be revised to ensure alignment with existing United
Nations arrangements.
31. In discussing the paper on tax incentives, one member suggested examining the
impact of the global minimum tax on tax incentives for sustainability and exploring
alternative mechanisms to maintain those benefits. Another member proposed that the
paper include specific examples for developing countries, highlighting the distinct
strengths and weaknesses of the qualified domestic minimum top-up tax compared
with a simplified domestic minimum tax, and also incorporate case studies of
resource-rich countries. One member recommended elevating the discussion on the
interaction between stability agreements and the minimum tax, noting its relevance.
The same member also argued against positioning the qualified domestic minimum
top-up tax as the second option, citing its complexity and the challenges it pose d for
developing countries with limited experience and access to group -level tax data.
Instead, he suggested that a general minimum tax be presented as the preferable

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second option, with the qualified domestic minimum top-up tax considered only as a
last resort. An observer supported the idea of simpler minimum tax bases, such as
those based on turnover or assets, as more practical alternatives for developing
countries, taking the view that those options posed fewer risks and challenges
compared with the qualified domestic minimum top-up tax.
32. Ms. Mensah welcomed the comments from members and observers, noting that
they would be considered when refining the papers and preparing them for final
approval at the next session of the Committee.

G. Environmental taxation

33. The Co-Coordinators of the Subcommittee on Environmental Taxation Issues,

Muhammad Ashfaq Ahmed and Susanne Åkerfeldt, presented their report on the
Subcommittee’s progress and next steps (E/C.18/2024/CRP.33). They noted that the
papers on workstreams 2 and 3, which covered the role of carbon taxes in energy
transition and the interaction of carbon taxation with carbon offsetting program mes,
along with other papers previously approved by the Committee, were available in
advance unedited version on the Committee’s website.
34. With respect to workstream 1 on the interaction of carbon taxation with other
national measures, part C (ibid., annex A) on phasing out fossil fuel subsidies was
being submitted for final approval. Part C was significant for both developed and
developing countries owing to the use of substantial fossil fuel subsidies globally.
Part B (annex D) on the interaction of carbon taxes with other taxes was being
presented for discussion and first consideration, with plans to refine it based on
feedback from the current session and to present the paper for final approval at the
thirtieth session. The Subcommittee also proposed adjusting the title of part B to
“Assessing the Interaction between Carbon Taxation and Mainstream Taxes: VAT,
Personal Income Tax, Corporate Income Tax and Excise Duties” to more clearly
reflect its content. Part A had already been approved at the twenty-seventh session.
35. With respect to workstream 4, which addressed border carbon adjustments and
how developing countries could mitigate undesired spillover effects, part C (annex B)
on potential responses to border carbon adjustments was being presented for final
approval. The Subcommittee paper clarified that the carbon border adjustment
mechanism of the European Union was being used as an example, given that it was
the only border carbon adjustment that was currently operational. Parts A and B of
the workstream, which focused on carbon leakage theory and border carbon
adjustment measures, had previously been approved at the twenty-seventh session.
36. Regarding workstream 5, which covered environmental taxes other than carbon
taxes, the Co-Coordinators submitted the main paper (annex C-1) and an inventory of
environmental measures (annex C-2) for final approval. The main paper outlined six
high-impact taxes relevant to developing countries, with three examples per tax type,
including air pollution, plastic, energy, solid waste, landfill, pesticide and sewage -
related taxes. They proposed adjusting the title of the paper to “Environmental
Taxation (Other than Carbon Taxes)”. Annex C-2, which was intended as a resource
for governments to access tested environmental measures, compiled over 100
examples from nine categories (agriculture, air, biodiversity, energy, natural
resources, transport, waste, water and residuals). No comments had been received
after the call for feedback at the twenty-eighth session, and all information had been
sourced from public websites.
37. Observers applauded the Subcommittee’s efforts and provided various
suggestions, which were acknowledged by the Co-Coordinators. The Committee
provided guidance on the work as follows:

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(a) Annex A: Approved, with a suggestion to adjust the language in the first
sentence of section 6 on page 14 to read: “Fossil fuel subsidies can influence the
effectiveness and goals of carbon taxes and other pricing instruments. ”;
(b) Annex B: Approved, with two Committee members recommending the
inclusion of disclaimers noted previously at the twenty-seventh session (see
E/2024/45-E/C.18/2023/4, para. 58);
(c) Annex C-1: Approved. A Committee member suggested including fiscal
measures to address pharmaceutical waste. The Co-Coordinators acknowledged the
suggestion and indicated that the Subcommittee would aim to address it in the
approved paper, while noting that it could also be further explored by the Committee’s
next membership;
(d) Annex C-2: Approved without additional comments;
(e) Annex D: The annex was being put forward for discussion and first
consideration. There was a suggestion to include the impact of tax measures on
consumer behaviour, both individual and corporate. In response, the lead drafter
indicated that the impact on consumer behaviour had been addressed in part A of
workstream 1; however, a cross-reference would be added for clarity.
38. The Co-Coordinators thanked the Committee, observers, the Subcommittee
participants and the Secretariat for their support, which had enabled the
Subcommittee to progress in accordance with the defined timeline.

H. Dispute avoidance and resolution

39. The Co-Coordinator of the Working Group on Dispute Avoidance and

Resolution, Mr. Protto, presented the report (E/C.18/2024/CRP.39). He noted the
ongoing monitoring of tax developments, in particular tax certainty initiatives relating
to pillar 1 of the Inclusive Framework on Base Erosion and Profit Shifting of the
Organisation for Economic Cooperation and Development (OECD) and pillar 2
(Global Anti-Base Erosion Rules), and collaboration with the Subcommittee on
Transfer Pricing. That monitoring would continue, and any further updates would be
presented at the next session.

I. Taxation issues related to the digitalized and globalized economy

40. The Co-Coordinator of the Subcommittee on Taxation Issues related to the

Digitalized and Globalized Economy, Ms. Kana, presented the Co-Coordinators’
report outlining the Subcommittee’s progress in its three workstreams
(E/C.18/2024/CRP.22).
41. Ms. Kana thanked the International Bureau of Fiscal Documentation for having
hosted an important joint Subcommittee meeting with the Subcommittee on Updating
the United Nations Model Double Taxation Convention between Developed and
Developing Countries. She also thanked the consultants to the Department of
Economic and Social Affairs, Brian Arnold and Philip Baker, for assisting with the
work of the Subcommittee. She highlighted that, for workstream B, which addressed
the relevance of physical presence tests, the Committee had previously decided to
work on the option of introducing a new article to the Model Convention (article xx),
which would replace articles 12A and 14. The Co-Coordinators’ report presented
revised versions of article xx and of its commentary. The final numbering of the article
would be decided later.

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42. Most members taking the floor congratulated the Subcommittee on the work
that had culminated in the introduction of the new article, noting that it was an
important step forward in dealing with the digitalized and globalized economy, where
physical presence was no longer essential to conduct services-related business, and
in simplifying the taxation of services under the Model Convention. Other members
maintained their objections to article xx.
43. During the discussion, some members raised concerns about the scope of the
new article and its interaction with other provisions of the Model Convention, noting
the challenge of consolidating multiple provisions into one while keeping an effective
balance in key aspects such as simplification. Some members brought attention to the
gross-based taxation in the draft of article xx, suggesting that net-based taxation
would lead to a fairer scenario for most countries as well as avoid excessive taxation.
Formulary apportionment was raised as one way to achieve that. Members agreed to
recognize options in the commentary for countries to decide whether to apply gross-
based taxation or net-based taxation. It was further suggested that the Committee
consider keeping articles 12A and 14 in the commentary (with their existing
commentary preserved) for countries that might find them useful when concluding
tax treaties. It was suggested that an annex to the Model Convention might be one
way to achieve that, an option that was widely supported.
44. It was suggested that, as with article 12A, individual use of services should be
excluded from the application of article xx, given that it would be difficult to apply
the article in practice. However, as article xx did not itself create a charge to tax,
which depended on domestic law (where the coverage would be addressed), it was
ultimately agreed that the exclusion was not necessary.
45. The relationship between article xx and article 5 (3) (b) was also raised as an
issue, and it was agreed that paragraph 26 of the commentary explained that issue and
would be maintained as it was. The relationship between article 12B and article xx
was also raised. It was opined that, as the definition of “service” in article xx was
rather broad, it would include automated digital services, but article 12B was
accorded precedence over article xx, as it provided more specific and targeted
provisions and guidance regarding automated digital services. It was agreed that the
commentary would include a clarification on the relationship between the two
articles.
46. A member requested a vote to decide the approval of article xx and its
commentary, noting that several other members had expressed concerns. The vote
took place in a closed meeting of the Committee. It was announced in the open
meeting that, by a clear majority, the vote had been in favour of including the article
and its commentary (with some small final adjustments and considerations) in the
next version of the Model Convention. The related commentary, with some
adjustments and considerations that the Subcommittee would consider, and the
numbering of the article would be presented at the thirtieth session of the Committee.
47. Ms. Kana presented the current work on workstream C, which addressed cross-
border taxation issues involving remote workers. Some members of the Subcommittee
had developed a proposal on incorporating an alternative provision dealing with that
issue into the commentary on article 15 (dependent personal services), which was
being presented for approval. There was some discussion on the proposed
commentary, including the proposed optional article 15 (4). Some concerns were
raised about the complexities of applying the provision to triangular cases and the
risk of unrelieved double taxation. An observer highlighted that, while the provision
focused on preventing tax avoidance, it did not address all challenges related to the
taxation of remote workers. While there was recognition that work had been done,
there was also a view that it would benefit from further consideration and discussion.

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The Committee therefore decided to continue work on the commentary on article 15

and return to the issue at the thirtieth session, with a view to settling it at that time.
48. In relation to workstream A, in proposing a draft decision for adoption by the
Council relating to the proposed fast-track instrument to provide for the streamlined
amendment of bilateral double taxation treaties (see chap. I), as finalized by the
Committee at its twenty-eighth session, the Committee recognized, as indicated in the
report of that session (E/2024/45/Add.1-E/C.18/2024/2, para. 55), that a minority of
Committee members remained opposed to the fast-track instrument.

J. Taxation of cryptoassets

49. A member of the Ad Hoc Group on the Taxation of Cryptoassets, Ashfaq Ahmed,
presented its report (E/C.18/2024/CRP.26). He provided an overview of the Ad Hoc
Group’s work, which had begun at the twenty-sixth session of the Committee, and
detailed its progress in developing a toolkit for the evaluation of crypto -related tax
risks, aimed at assisting countries in accurately identifying the risks that cryptoassets
posed in their domestic tax systems.
50. At the twenty-eighth session, the Ad Hoc Group had presented the first part of
the toolkit, which addresses two categories of cryptotax risks: cryptoreporting and
cryptotax crimes, and crypto-related losses and deductions. That initial part had been
presented for the Committee’s first reading and guidance. The toolkit used
questionnaires tailored to each risk category, supplemented by commentary sections
that provided the background and rationale for each question, ensuring that users had
a comprehensive understanding of the issues.
51. Mr. Ahmed presented a revised first part of the toolkit for approval by the
Committee that incorporated feedback received at the previous session. He detailed
its content and highlighted the key improvements, which included refined
commentaries to enhance clarity and precision, especially regarding crypto -related
losses and the applicability of international standards for crypt oreporting.
52. The second part of the toolkit, which addressed a third category of cryptotax
risks, namely, risks relating to cryptofunctional substitutes, was being presented for
a first reading by the Committee. Mr. Ahmed explained that the second part addressed
situations in which cryptotransactions, acting as “functional substitutes” for
traditional ones, could create tax arbitrage opportunities owing to the operation of tax
laws that had not been originally designed with cryptoassets in mind. He emphasized
that the second part of the toolkit also followed the structure of detailed
questionnaires and commentaries to guide users in evaluating and responding to those
specific risks.
53. Members and observers acknowledged the extensive work of the Ad Hoc Group.
One member expressed appreciation for the inclusion of frameworks such as the
cryptoasset reporting framework and suggested referencing the European Union
Markets in Cryptoassets regulation. An observer highlighted the $50,000 threshold
for reportable retail payment transactions under the cryptoasset reporting framework
as a potential limitation for developing countries and suggested that a reference to
that issue be added in the commentary to the toolkit.
54. Mr. Ahmed expressed gratitude for the input and guidance and thanked
members, the Secretariat and all other contributors for their cooperation. He assured
the Committee that the Ad Hoc Group would review the feedback received and make
the necessary adjustments to the second part of the toolkit to prepare it for
presentation for approval at the next session.

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55. The Co-Chair, Mr. Gbonjubola, invited the Committee to approve the first part
of the toolkit, which was subsequently approved. He also called for written comments
to assist in finalizing the second part, with the aim of presenting it for approval at the
thirtieth session.

K. Digitalization and other opportunities to improve tax administration

56. The Co-Coordinator of the Working Group on Digitalization and Other

Opportunities to Improve Tax Administration, Elisângela Rita, presented the
Co-Coordinators’ report, which contained a guide on the digitalization of revenue
authorities (E/C.18/2024/CRP.38). Ms. Rita presented an overview of the work of the
Working Group, which had met three times since the previous Committee session,
and acknowledged the work of Waziona Ligomeka, another Co-Coordinator of the
Working Group, and of the document drafters.
57. The Working Group presented the outline of the guide and chapter 5 on the data
governance strategy and framework for a first reading and discussion; part 2 on the
legal governance framework (chaps 3 and 4) and part 4 on innovative technologies
(chap. 8) for a second reading and discussion; and chapter 1 (introduction and
overview), chapter 6 (data collection), chapter 7 (use of data) and the case studies for
discussion and approval.
58. Ms. Rita said that the new chapter 5 on the data governance strategy and
framework included a preamble on data governance that complemented a previous
chapter on data collection and data use, in response to comments made during and
after the twenty-eighth session. Minor editorial adjustments had been made to
chapters 3 and 4 on the legal governance framework and chapter 8 on innovative
technologies. She noted the addition of 14 case studies from different jurisdictions
that had successfully implemented digitalization in tax administration processes.
59. Members welcomed the progress achieved in the guidance on digitalization. It
was suggested that the Working Group could address the importance of taxpayers’
rights in relation to the use of artificial intelligence by tax administrations in chapter 4
and also include references to issues raised by big data and biometric authentication
in chapter 8. An observer proposed that the Working Group include a chapter on tax
risk management for tax administrations and compliance risk management.
60. The Committee approved chapters 1, 6 and 7 and the case studies.

L. Increasing tax transparency

61. The Co-Coordinator of the Subcommittee on Increasing Tax Transparency,

Ms. Mensah, presented the Co-Coordinators’ report (E/C.18/2024/CRP.37). She
emphasized the Subcommittee’s commitment to raising awareness among
jurisdictions that were new to tax transparency and exchange of information. A draft
paper outlining key aspects of exchange of information and the broader tax
transparency framework had initially been presented at the twenty-eighth session. The
document, currently being presented for a second reading by the Committee, had
evolved into a comprehensive four-part paper: part 1 provided a general introduction
to tax transparency; part 2 contained a discussion on the challenges and limitations
identified by jurisdictions in enhancing tax transparency; part 3 proposed solutions to
the previously identified challenges and limitations; and part 4 outlined practical
guidelines for jurisdictions that were new to tax transparency. The Subcommittee
aimed to integrate feedback and guidance received at the current session for
finalization and approval at the following session. The support from the secretariat of

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the Global Forum on Transparency and Exchange of Information for Tax Purposes,
as well as participants from the Inter-American Center of Tax Administrations, the
African Tax Administration Forum, the Asian Development Bank and the World Bank
Group in developing the paper was also acknowledged.
62. Members congratulated the Subcommittee on its comprehensive work. One
member suggested updating the paper with 2023 data relat ing to the Common
Reporting Standard and revising box 5 on Mexico to include updated information.
Another member recommended delving deeper into the use of tax information
obtained under tax treaties for non-tax purposes and noted that many countries faced
challenges in receiving such information because they did not meet certain standards,
raising the question of whether those standards were absolutely essential. It was noted
that, beyond the challenge of receiving tax information, developing countries often
struggled to effectively utilize the information received. Another member suggested
that the paper include practical guidance on how jurisdictions could handle and use
the information effectively while adhering to confidentiality rules.
63. An observer highlighted an existing pilot project relating to the use of
exchanged information for non-tax purposes. Another observer suggested clarifying
whether the legal basis for acquiring information f ell under treaties for mutual
assistance in criminal matters or treaties for mutual administrative assistance in tax
matters in cases involving suspected criminal offences. Other suggestions pertained
to the importance of discussing taxpayer rights, balancing privacy with transparency,
considering the costs of exchange of information for developing countries and
emphasizing the need for capacity-building.
64. The Co-Coordinators expressed their gratitude for the suggestions. José Troya
highlighted the relevance of the topic for developing countries. Ms. Mensah
acknowledged that confidentiality and data safeguards remain ed a challenge for many
developing countries, contributing to situations in which some countries sent
information but did not receive it. She suggested that that issue could be considered
for further work by the next membership of the Committee.

M. Wealth and solidarity taxes

65. The Coordinator of the Subcommittee on Wealth and Solidarity Taxes,

Mr. Troya, introduced the Coordinator ’s report (E/C.18/2024/CRP.25). He presented
a draft of a United Nations template law on a net wealth tax on individuals for first
consideration.
66. The template law contained a foreword and a preamble, followed by four
chapters. Chapter 1 on enabling provisions contained the title, territorial scope and
commencement of the law, along with definitions. Chapter 2 on imposition of the
wealth tax contained, inter alia, provisions on the tax charge, taxpayer and taxable
assets. Chapter 3 on the administration of the law included provisions on valuation,
confidentiality and penalties and Chapter 4 dealt with special rules. The special rules
included, for example, a general anti-avoidance rule as well as provisions dealing
with trusts.
67. Members and observers thanked the Subcommittee for its work and noted that,
in the light of rising inequalities and the Sustainable Development Goal financing
gap, the template law presented a very useful tool. In particular, members expressed
their appreciation that the Subcommittee was not purporting to produce a “copy-
paste” law, but rather was seeking to provide countries with input and ideas for
integration into their legislative process. A member suggested that the introduction to
the template law should include some estimates of potential revenues that could be
raised from a net wealth tax. Another member suggested addressing provisions on

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entry into force of the law in more detail, including grandfathering provisions. One
observer noted that tax residency should be defined in the template law.

N. Indirect tax issues

68. The Co-Coordinator of the Subcommittee on Indirect Tax Issues, Kapembwa

Namuyemba-Sikombe, presented the Co-Coordinators’ report (E/C.18/2024/CRP.21).
She recalled that at the previous session, the Committee had agreed to focus on four
specific papers during the current term. She noted that the four papers under
discussion had already been presented at the previous two sessions for initial review
and discussion and were now being submitted for final approval. Ms. Namuyemba -
Sikombe then offered a brief explanation of the draft papers, which focused on the
following workstreams, as detailed in annexes A to D of the Co-Coordinators’ report:
(a) Workstream A: Overview of value-added tax (VAT)/goods and services tax
(GST) in developing countries;
(b) Workstream B: VAT/GST treatment of small enterprises;
(c) Workstream C: Introduction to VAT/GST refunds;
(d) Workstream D: Use of new technologies to improve VAT/GST compliance
(information technology systems, e-invoices and big data).
69. Members and observers expressed their appreciation for the Subcommittee’s
work and welcomed the draft papers. They highlighted the critical importance of VAT
in tax systems, in particular for developing countries, where it represented a
significant source of revenue. Specific suggestions and comments were provided on
the paper on workstream A. One member suggested a revision to section 5.6 relating
to dispute resolution. Another member proposed expanding the discussion on VAT
exemptions and adding examples of existing legislation on cross-border VAT issues.
He also noted that terminology should be standardized across the four papers, which
could be dealt with as an editorial task.
70. Other members made more general comments. One member highlighted the
relevance of “carousel fraud” for developing countries and suggested that it could be
taken up by the next membership of the Committee. Another member noted that much
of the VAT legislation in developing countries was modelled on foreign laws. She
hoped that the Subcommittee’s work would be continued by the next membership and
proposed that it explore such topics as VAT and tourism and VAT and official
development assistance.
71. Ms. Namuyemba-Sikombe expressed her gratitude to the drafters for their
efforts and thanked the members and observers for their constructive feedback. On
the issue of cross-border services, she clarified that it had been expressly stated in the
overview paper that the issue would not be addressed in detail at the present stage.
However, she acknowledged that as a foundational framework had now been
established, the topic could possibly be developed further by the next membership. A
similar approach was suggested regarding the development of model legislation. She
assured the members that the Subcommittee would carefully consider the feedback
received in refining the papers. She also noted that the Subcommittee would prepare
a list of potential topics to suggest to the next membership for its consideration.
72. The Co-Chair, Ms. Kana, thanked all participants for their contributions and
formally invited the members to approve the papers. The Committee subsequently
gave final approval to all the papers.

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O. Health taxes

73. Ms. Namuyemba-Sikombe, one of the Co-Coordinators (along with Trude

Steinnes Sønvisen) of the Subcommittee on Health Taxes, provided an update on the
Subcommittee’s progress on the handbook on health taxes for developing countries,
the primary work product of the Subcommittee’s work programme. Prior to the
current session, the Committee had approved three chapters. For the twenty-ninth
session, the Subcommittee had provided drafts of all the remaining chapters, either
for a second reading and approval or for a first reading.
74. Ms. Namuyemba-Sikombe then presented the Co-Coordinators’ report entitled
“Revised chapters” (E/C.18/2024/CRP.35). At its twenty-eighth session, the
Committee had had a first discussion on chapter 3, “Role of health taxes in national
budgets”; chapter 8, “Addressing potential secondary effects of health taxes”; chapter
10, “How to generate public acceptability for health taxes”; chapter 12, “Specific
issues with respect to alcohol taxation”; and chapter 13, “Specific issues with respect
to excise taxation to support improved nutrition”. She explained that the
Subcommittee had revised those chapters in response to comments made at and
following the twenty-eighth session.
75. With respect to the discussions on alcohol policy in the above-mentioned
chapters, several observers suggested changes regarding factual statements or matters
of nuance. They were asked to send in written comments by 8 November 2024.
Several Committee members expressed the view that the chapters were currently
well-balanced and that any changes made in response to written comments should not
change that balance. The Committee therefore approved the revised chapters, subject
to minor changes to correct errors.
76. The Committee held a first discussion on the note “New chapters”
(E/C.18/2024/CRP.36) and the note “Chapter 1: Introduction to the handbook on
health taxes for developing countries” (E/C.18/2024/CRP.41). The first note included
drafts of Chapter 6, “Practical considerations for health tax revenue use”; chapter 7,
“Administering health excise taxes”; chapter 9, “Ensuring coherence between policy
instruments”; and chapter 11, “Specific issues with respect to tobacco taxation”.
77. In connection with chapter 11, a member of the Committee noted that there had
been a robust discussion on the costs of tobacco taxation but less discussion on the
benefits. The member explained that, in their country, an increase in tobacco taxes
had resulted in significant savings by reducing the number of premature deaths. The
same member suggested increasing attention to new products, including vapes
(electric cigarettes). Another member raised the issue of cooperation between
academia and line ministries and the importance of public com munications and
discussing how to measure the effectiveness of various approaches.
78. The Co-Chair, Ms. Kana, requested that all written comments be submitted by
8 November 2024 to allow the Subcommittee to take them into account in finalizing
the chapters.

P. Relationship of tax, trade and investment agreements

79. The Co-Coordinator of the Subcommittee on the Relationship of Tax, Trade and
Investment Agreements, Aart Roelofsen, presented the Co-Coordinators’ report on the
progress made in the Subcommittee’s work and its workstreams (E/C.18/2024/CRP.23).
80. With regard to workstream A, on tax and international investment agreements,
draft guidance on tax policy and administrative measures and their relationship with
international investment agreements was presented for approval. The guidance

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included recommendations on the negotiation of such agreements and potential

impacts on tax and addressed such topics as the interaction between international
investment agreements and domestic law and dispute prevention. The draft guidance
incorporated feedback gathered during the twenty-eighth session of the Committee.
Mr. Roelofsen highlighted the main changes, which focused primarily on issues
relating to the discussions on investment incentives, stabilization clauses and the
importance of involving tax officials at an early stage of disputes.
81. Several members expressed strong support for the draft guidance, emphasizing
its usefulness for both tax and investment officials. One member suggested that
additional points could be added to ensure safeguards against potential abuse by
investors. Another member suggested that the section on relevant work by the United
Nations Conference on Trade and Development could be expanded, although that was
not seen as a barrier to approval, given that it could be done editorially. An observer
expressed appreciation for the balanced approach of the paper and offered to
contribute practical experiences in relation to any ongoing work. The Co -Coordinator
reiterated that the aim was to have the paper approved at the current session, as the
Secretariat had confirmed that the proposed refinements could be addressed as an
editorial matter in consultation with the Co-Coordinators. The Co-Chair, Ms. Kana,
noted the work that Alain Castonguay, as a consultant to the Department of Economic
and Social Affairs, had done on the paper, expressed gratitude for the comments
received and invited members to approve the paper, subject to any necessary purely
editorial changes. The Committee approved the paper.
82. On workstream B, concerning the relationship between tax treaties and the
General Agreement on Trade in Services of the World Trade Organization, the
Subcommittee submitted for approval a draft text of a clause addressing the
relationship of the General Agreement dispute settlement provisions with tax treaties.
The clause had formerly been addressed only in the commentary, by means of an
optional provision, but would now be placed in article 25 of the Model Convention,
with attendant commentary, after first consideration at the twenty-eighth session. The
Co-Coordinator requested direction from the Committee on whether to incorporate an
extended provision covering other agreements directly in the text of the article itself
or solely in the commentary.
83. On the proposed draft text of the General Agreement clause, some members
suggested minor language changes. One member fully supported the text of the article,
preferring not to alter it given its established presence in the commentary. The Co-Chair
confirmed that there was no opposition to approving the text of the General Agreement
clause, and the Committee accordingly approved it. Purely editorial changes could, as
always in such cases, be made in consultation with the Co-Coordinators.
84. Regarding the commentary on the clause, a member put forward editorial
suggestions for paragraphs 59 and 60 that would eliminate duplication and offered to
submit them in writing. It was noted that although the commentary would undergo
further review and be presented for final approval at the next session, n o significant
changes were anticipated.
85. With regard to the extended provision, another Co-Coordinator, Ms. Kana,
clarified that the decision on incorporating an extended provision had already been
taken at the previous session of the Committee; the decision to be taken at the current
session was whether to place the provision in article 25 or only in the commentary. In
that regard, members expressed differing opinions.
86. Some members expressed strong support for including the extended provision
in the article, arguing that it would provide greater visibility and ensure that tax
officials considered it during negotiations, especially in developing countries. One
member noted that many existing tax treaties, including those of OECD member

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countries, already incorporated extended provisions, indicating that their inclusion

did not inherently conflict with constitutional or legal frameworks. Another member
emphasized that the main reason for having the provision in the article was to help
prevent forum-shopping by ensuring that tax disputes were resolved by tax experts
rather than general trade or investment dispute mechanisms.
87. Conversely, other members raised concerns about the potential legal uncertainty
of a novel provision and the broad scope of the provision. One member argued that
even though an extended provision existed in some treaties, it used different wording,
was not widely used and did not appear ever to have been applied in practice. Another
member cautioned that the provision could lead to conflicts with existing and future
investment agreements and suggested that including it only in the commentary would
allow for further evaluation of its practical implications. Concerns were also
expressed about the extended provision overriding dispute resolution provisions
agreed in existing and future trade and investment agreements and the potential
constitutional issues that that could pose for some jurisdictions. Another member
raised the concern that the inclusion of such a provision in the Model Convention was
not consistent with the whole-of-government approach promoted in the approved
guidance paper under workstream A.
88. Following the debate, a member called for a vote. A substantial majority of the
Committee, by a margin of 15 to 8, voted in favour of placing the extended provision
in article 25. The Subcommittee would re-present the text of the provision, with
attendant commentary, which would include a minority view expanding on the
concerns raised at the session alongside the views of those not sharing those concerns,
for finalization at the next session.

Q. Capacity-building

89. The Chief of the Capacity Development Unit in the Financing for Sustainable
Development Office, Emily Muyaa, provided an update on the Secretariat’s capacity
development programme regarding tax and domestic resource mobilization since the
twenty-eighth session, along with forthcoming activities.
90. Ms. Muyaa briefed the Committee on several workshops. The annual United
Nations/OECD tax treaty negotiation workshop had been held in Vienna in July 2024.
In May, the same tax treaty negotiation workshop had been held in Seoul, the first
time that the joint workshop had taken place in the Asia-Pacific region. The
Department of Economic and Social Affairs and OECD had collaborated with the
Asian Development Bank and the Korea Tax Center on the Seoul workshop. Another
new workshop, on select international tax issues for Portuguese-speaking African
countries, would be held in Luanda in December 2024.
91. Ms. Muyaa underscored the collaborative efforts among the secretariats of the
United Nations, OECD, the International Monetary Fund and the World Bank Group
through the Platform for Collaboration on Tax. She also highlighted the work of the
Department of Economic and Social Affairs on expanding online training tax courses
on transfer pricing and translating the course on the mutual agreement procedure into
French. New interactive training materials on advance pricing agreements and
taxation of the extractives industries were also in process.
92. Ms. Muyaa provided a brief overview of the Office’s current Development
Account project on identifying and addressing vulnerabilities to aggressive tax
avoidance in developing countries, which had been launched in 2024 and was to be
implemented through 2027. The project would develop and refine a risk assessment
tool to help countries in identifying and addressing vulnerabilities, working with three
pilot countries and focusing in those countries on areas at high risk for, and i ndustries

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prone to, aggressive tax avoidance. Insights gained from the project would inform
future capacity development activities for a wider range of developing countries,
including through regional workshops.
93. Members and observers commended the capacity-building work and its
significance for developing countries. Comments by observers included a suggestion
that elements of the various Committee guidance documents that had been finalized
by the current membership should be incorporated into the current capacity
development work, such as the guidance already approved on transfer pricing and the
forthcoming updates to the Model Convention. Several Member States noted that they
had benefited from technical assistance missions that covered such topics. There was
also a request to restart the community of practice virtual workshops as an efficient
way to provide training to a wide group of tax officials. Ms. Muyaa thanked the
members and observers for their comments, noting that their inputs would be taken
into account in future work.
94. The key role played by countries in contributing funds for that work was
highlighted by the Secretariat and further recognized by the Co -Chair, Ms. Kana.
Contributions from the Governments of Denmark, India, Norway and Sweden and the
European Union were noted with gratitude, and a call was made for further
contributions to amplify and extend the benefits of the Committee -related and
capacity development work.

R. Other matters for consideration

95. No additional matters were raised for consideration. Members were reminded,
as a general matter, that it had always been the practice of the Committee for the
editing of the texts finalized and approved by the Committee to be conducted under
the supervision of the relevant coordinators and that the process did not entail the
making of substantive changes. The Co-Chair, Ms. Kana, reported that the title of the
Model Convention, in particular whether it should be shortened to “United Nations
Model Double Taxation Convention”, had been discussed in a closed meeting and it
had been agreed to discuss the issue in an open meeting at the thirtieth session, with
a view to reaching a decision then. A small group of members had been asked to
prepare a paper for consideration at that session.

Agenda item 4: Provisional agenda for the thirtieth session

96. The provisional agenda for the thirtieth session proposed for approval by the
Economic and Social Council is set out in chapter II of the present report. Members
were informed that the dates and venues of the next sessions were yet to be confirmed
by the Council but were expected to be as follows:
(a) Thirtieth session: 24–27 March 2025 (New York), to be followed on
28 March by the 2025 Economic and Social Council Special Meeting on International
Cooperation in Tax Matters;
(b) Thirty-first session: 21–24 October 2025 (Geneva).

Agenda item 5: Arrangements for adopting the report of the Committee on its
twenty-ninth session
97. The Secretary noted that arrangements for the report on the session would, as
usual, be as provided for in the Committee document entitled “Practices and Working
Methods for the Committee of Experts on International Cooperation in Tax Matters ”.

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Closing remarks
98. The Co-Chairs thanked Committee members and observers for their in-person
participation in the session, acknowledging the valuable contribution of observers and
also of those countries financially supporting the work of the Committee. They also
thanked the Secretariat and those providing interpretation and conference services in
Geneva. The Secretariat thanked all those participating, in particular the Co -Chairs,
for their skilled handling of the session. After a final closed meeting, the session was
formally concluded.

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