UN Tax Committee Creates Subcommittee to Tackle Digital Economy

The UN Tax Committee decided on 27 October 2025 in New York to create a new sub‑committee focused on tax challenges arising from economic digitalisation and globalisation. The decision was recorded in the committee’s official report.

The sub‑committee will evaluate the effectiveness of the 2025 UN Model in addressing taxes on digital services, artificial intelligence, remote‑working arrangements, and permanent‑establishment of services. It will prepare an evaluation report for the 33rd session in October 2026 and a practical guide for the 36th session in March 2028. The initiative responds to developing countries’ calls for clarification of Articles 12AA and 12B.

Creating the sub‑committee signals a move to clarify digital‑service tax rules and provide implementation guidance for jurisdictions. The forthcoming evaluation and guide are expected to influence tax treaty negotiations and domestic legislation ahead of upcoming sessions. This reflects the international demand for a tax framework that adapts to emerging technologies.