Global tax reform could unlock half-trillion dollars for public services

According to a Tax Justice Network analysis, adopting unitary taxation—where multinationals are taxed based on the location of their actual business activities—could add $500 bn to global tax receipts each year without increasing headline rates. The concept would shift profits from offshore booking centres to the jurisdictions where workers earn wages and consumers spend money. UN deliberations beginning in New York aim to embed this principle in a new fiscal framework, modeled after the climate convention, with a target adoption date of late 2027.

While the United States exited the process last year, countries such as Britain, EU members, India, Nigeria and several African states are pushing forward, each estimating substantial fiscal gains. The plan also includes protocols to tax digital services without a physical presence and to move tax disputes into a publicly accountable UN mechanism. If successful, the shift would challenge the tax rules dating from the 1920s and curb the ability of corporations to avoid taxes through complex structures.