1945

United Nations Guidelines on the Tax Treatment of Government-to-Government Aid Projects

image of United Nations Guidelines on the Tax Treatment of Government-to-Government Aid Projects

Abstract

The proliferation of special tax exemptions, including tax exemptions related to government-to-government aid projects, poses a serious obstacle to developing country efforts to broaden their tax base. Donor countries are increasingly conscious of the difficulties that such exemptions create for the tax authorities, and a number of them have reconsidered their policy in this area. The new UN Guidelines on the Tax Treatment of Government-to-Government Aid Projects assist donors and recipient countries in determining the appropriate tax treatment of government-to-government aid projects, by facilitating their discussion of this issue. The Guidelines address various considerations that should be taken into account when determining whether such exemptions should be requested. Moreover, they provide guidance on the negotiation of any tax provisions related to government-to-government aid projects and the scope and implementation of these provisions. The annex contains a recommendation on public disclosure adopted by the Committee in support of the Guidelines and emphasizing the importance of transparency with respect to tax provisions related to government-government aid projects. The UN Guidelines on the Tax Treatment of Government-to-Government Aid Projects are a product of the UN Tax Committee, supported by its Secretariat in the UN Department of Economic and Social Affairs. Having first initiated work on the issue in 2005, the Committee drew on the momentum of the Addis Agenda and multi-stakeholder discussion to revise, finalize and adopt the new Guidelines and Recommendation in 2020.

Sustainable Development Goals:

References

/content/books/9789210001083
Loading
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error
aHR0cHM6Ly93d3cudW4taWxpYnJhcnkub3JnLw==