International Tax Forum Addresses Global Tax Challenges And Innovative Solutions For Sustainability

At the International Tax Forum (ITF), organised by the Ministry of Finance, key figures from various sectors discussed significant issues affecting global taxation. The event, part of the World Governments Summit 2025 in Dubai from 11th to 13th February, focused on the OECD's Global Minimum Tax and its impact on base erosion and profit shifting.

The forum emphasised the importance of OECD’s Pillar II rules in ensuring multinational companies adhere to minimum tax rates. This reform is seen as crucial for enhancing tax fairness and stabilising the global economy, balancing both advanced and emerging economies. Participants also explored how these reforms support economic stability worldwide.

International cooperation was highlighted as essential for building effective tax systems. Discussions included mechanisms for exchanging tax information to combat evasion and enhance transparency. E-invoicing was noted as a modern tool that improves tax system efficiency and reduces administrative burdens, aiding digital transformation.

The rise of e-commerce and new business models presents challenges for taxation in the digital economy. Experts stressed developing innovative tax policies to address these changes. They called for collaboration between governments and private sectors to maintain sustainable and straightforward tax systems.

Younis Haji Al Khouri, Under-Secretary of the Ministry of Finance, remarked on the ITF's role in fostering international dialogue on global tax system changes. He noted that rapid economic transformations and digitisation present unique challenges requiring innovative solutions and international cooperation.

Al Khouri stated, "Among the most prominent initiatives leading global efforts to reform the international tax system and achieve tax justice is the OECD Global Minimum Tax or Pillar II rule, which represents a pivotal step to ensure minimum taxes for multinational companies."

Future Tax Policies

The forum also addressed future taxation policies amid digital transformations. Al Khouri concluded that proactive vision is necessary to navigate challenges posed by the digital economy. He emphasised that achieving sustainable tax systems requires joint efforts from governments, international bodies, and private sectors.

"Today, we stand at the threshold of a new phase that requires proactive vision to navigate the challenges and opportunities posed by the digital economy," Al Khouri added. The forum aimed to discuss practical solutions for future policies ensuring global tax system sustainability.

With inputs from WAM