New Delhi/New York: United Nations negotiations on a proposed global tax convention present a significant opportunity for India to shore up its taxing rights over multinational companies, Indian tax experts said, as member states enter the fifth session in New York where concrete draft texts are being discussed for the first time.
What is being negotiated
The Intergovernmental Negotiating Committee (INC) is working on a UN Framework Convention on International Tax Cooperation and two related protocols — one on cross-border services and another on tax dispute settlement — under the UN Department of Economic and Social Affairs’ Financing for Sustainable Development Office. The INC is operating to a timetable of nine sessions across three years and aims to deliver final texts to the UN General Assembly by 2027.
Since the fourth session concluded in New York on 13 February 2026, negotiators have prepared zero drafts that now form the basis of the fifth session, running until 13 August 2026. For the first time, member states are engaging with concrete draft language across all three workstreams.
Why India is watching closely
According to reporting by ETV Bharat cited at the fifth session, Indian tax specialists see the convention as a major lever to strengthen domestic taxing rights, particularly over multinational corporations that shift profits across jurisdictions. They argue that international tax rules must evolve to reflect modern business models, and that improved information sharing and stronger safeguards against avoidance and evasion are necessary.
- Taxing rights: The framework could alter how taxing rights are allocated between residence and source countries, potentially increasing India’s claim over profits booked by multinationals operating in India.
- Dispute settlement: A dedicated protocol on disputes may change the mechanisms through which cross-border tax disagreements are resolved.
- Information sharing: Wider cooperation and automatic exchange of tax information are expected to be central to the convention’s enforcement architecture.
Immediate and wider implications
For the Union government and tax authorities, a binding UN instrument could provide legal cover to press for a greater share of tax on digital and services-driven revenues that are not tied to physical presence. For businesses, especially multinational enterprises, the convention may mean clearer rules on nexus, profit allocation and dispute resolution — but also higher compliance demands.
For the public finances, experts told ETV Bharat that the negotiations could influence development funding by altering how revenues are collected and shared. While the INC aims to finalise texts by 2027, any adopted rules will require domestic ratification and policy adjustments in many countries, meaning changes are likely to be phased in over years rather than immediate.
| Item | Detail |
|---|---|
| Lead body | Intergovernmental Negotiating Committee (INC) |
| Instruments | Framework Convention; Protocol on cross-border services; Protocol on tax dispute settlement |
| Timeline | Nine sessions over three years; final texts to UNGA by 2027 |
| Current session | Fifth session, New York, until 13 August 2026 |
What it means for you
For Indian taxpayers and consumers, a tougher international tax regime could mean improved government revenue mobilisation, which in turn might support public spending on services and infrastructure. For Indian subsidiaries of multinationals and firms with cross-border operations, expect greater emphasis on documentation, reporting and transfer pricing compliance. The exact outcomes will depend on negotiation outcomes and how soon countries implement any agreed rules.
The INC’s work represents a rare multilateral push to reframe international tax rules from a development perspective. As draft texts are debated in New York, India’s position — and the final wording adopted at the UN — will matter for future disputes, tax claims and the global balance of taxing rights.
