These days it’s so easy to buy online. A few clicks and something can even arrive at our door the same day.  But behind that convenience are huge global tech companies like Amazon, Apple, Google and Meta — operating across the world.

And while these companies are global, the tax rules they operate under are not. Multinational companies can, and do, shift their profits to countries where they pay less tax.  That means less money for vital things like healthcare, education and action on climate change. Our global tax system isn’t working for us. 

Now there’s once-in-a-generation opportunity to change things. Governments around the world are currently negotiating new rules through the UN Framework Convention on International Tax Cooperation, or UN Tax Convention

The UN Tax Convention bring together all 193 countries to try to agree a new framework for how multinational companies are taxed. 

These talks aim to establish fair, inclusive global tax rules that will tackle profit shifting, strengthen transparency, and ensure all countries can raise the tax revenue they need. 

Put simply, the goal is this: companies should pay tax where they actually do business — not just where tax rates are lowest. 

Talks are underway, with key meetings taking place this year in New York and Nairobi. These talks have potential to reshape how the global economy works.

At the heart of the Convention are some long-standing issues in the global tax system: 

  • Profit shifting: Companies moving profits to low-tax jurisdictions 
  • Tax avoidance loopholes: Legal gaps that reduce how much tax is paid 
  • Unequal influence: Wealthier countries often have more say in setting the rules 

Amazon pays very little corporation tax — a tax on profits — compared with the enormous scale of its sales. 

Heavy investment in expansion reduces the profits it reports for tax purposes. It also pays senior staff in shares rather than cash. The cost of this share-based compensation is recorded as an expense, further reducing reported its profits. 

Investors accept this focus on growth because they’re betting Amazon will become more valuable in future. They expect their shares to rise in value rather than demanding maximum profits and dividends today. 

Amazon also shifts where its profits appear. If you buy something in Europe, your receipt will usually come from Luxembourg, a low-tax country, rather than your own.  

Local Amazon companies are structured to appear barely profitable, mainly handling delivery and sales.  

The result is huge sales where people live, while profits, and tax, show up elsewhere. 

For many developing countries, this isn’t just technical — it’s about having the resources to fund public services and support economic development. 

This is exactly the kind of problem the UN Tax Convention is trying to fix: making sure companies contribute fairly wherever they operate. 

It’s easy to think of global tax as something distant or technical. But the impacts are very real. 

When companies don’t pay their fair share, the shortfall has to come from somewhere — often through higher taxes on individuals or reduced public spending. 

Fairer global tax rules could mean: 

  • More funding for public services 
  • Greater investment in tackling poverty and inequality 
  • Stronger action on global challenges like climate change 

In short, it’s about making the economy work better for everyone — not just for those best able to navigate the system.

Global issues can feel out of reach — but political momentum often starts with public pressure. 

Even small actions help show that people care about building a fairer system. 

Negotiations through the UN Tax Convention will continue until the Autumn of 2027. Countries are working through complex questions about how to design a fair and effective system. 

A final agreement is expected to be voted on at the end of 2027. What happens between now and then will be crucial in shaping the outcome. 

The UN Tax Convention is a rare opportunity to rethink the rules of the global economy. 

For the first time, every country has a seat at the table to shape how multinational companies are taxed.  

If successful, it could help create a system that is more transparent, balanced and fairer. Because the global economy depends on all of us, the rules should work for all of us too. 

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