Advocating for Business in Global Tax Policy
The International Chamber of Commerce is at the forefront of global tax discussions, ensuring
that businesses have a strong voice in shaping fair and effective tax policies. From VAT regulations
to the development of a United Nations (UN) tax framework, ICC works to create a tax environment
that fosters trade, investment, and economic growth.
VAT & Tariffs
The recent policy brief issued by the ICC clarifies the distinctions between VAT and import tariffs, emphasizing VAT’s positive role in global trade. This comes in response to concerns raised by the U.S. in the ‘Fair and Reciprocal Plan’ about VAT potentially discriminating against American businesses.
In the VAT system, businesses act as intermediaries that collect and remit the tax at each stage of the supply chain, but the final cost is absorbed by the end consumer. This structure ensures that VAT is effectively a consumption tax, with each participant in the supply chain reclaiming the VAT on their inputs so that the tax burden accumulates only at the final point of sale.
As a result, VAT, is inherently neutral and non-discriminatory toward foreign businesses, reinforcing its role as a fair and efficient mechanism in international trade.Recognising these benefits, the ICC has been at the forefront of these discussions, advocating for balanced VAT policies that help eliminate unnecessary trade obstacles. More information on the role of VAT in international trade can be found here.
The UN Tax Convention: ICC Representing Business Interests
In 2024, the United Nations General Assembly established an intergovernmental negotiating
committee to draft an UN Framework Convention on International Tax Cooperation. This process,
running from 2025 to 2027, aims to create a clear and fair global tax framework that improves
cooperation between countries.
On 16 August 2024, the UN Ad Hoc Committee approved the Terms of Reference for the
convention, marking a significant milestone in the process of developing new cross-border taxation
rules. This approval sets the stage for future negotiations, shaping policies that will impact
businesses globally.
ICC has been actively involved in these discussions to ensure that the convention:
• Promotes tax certainty and aligns with existing international frameworks.
• Encourages investment, job creation, and sustainable economic growth.
• Includes meaningful engagement with businesses throughout the negotiation process.
Key Concerns and ICC’s Advocacy Efforts
During the negotiations, ICC Global Policy Lead on Taxation, Luisa Scarcella, welcomed the
inclusion of stakeholder participation in the drafting process but expressed concerns over the
absence of explicit taxpayer safeguards in the final text. Additionally, the ICC emphasized the
necessity for broad international coordination to ensure consistency with existing frameworks.
Concerns were also raised about the ambitious timeline for negotiating the taxation of crossborder services, particularly regarding its potential economic impact on developing countries.
ICC’s Commitment to Business-Friendly Tax Policies
The ICC remains committed to working closely with policymakers to ensure balanced and effective
tax policies that support global trade and investment. By actively participating in UN negotiations
and advocating for business-friendly tax frameworks, ICC is shaping a more predictable and fair
international tax system.
Stay informed about ICC’s tax initiatives and how we’re working to protect business interests
worldwide.
Timeline 2025
The following is a timeline of the ICC’s Global Tax Commission for the remainder of 2025, with all
dates subject to final confirmation and potential adjustments.
