From the OECD to the UN: International Tax Reform and the Role of South Africa in the G20

The briefing note critiques the OECD's Two-Pillar solution for being undemocratic and providing minimal revenue benefits to developing countries, particularly in Africa. It advocates for a transition toward a UN-led international tax architecture that ensures equal participation for all states. The author urges South Africa, during its 2025 G20 Presidency, to build consensus for taxing the super-rich and to support the Africa Group's efforts within the UN process to curb illicit financial flows and tax avoidance.

• Global revenue losses from cross-border tax abuse reached $492 billion in 2024, with $347.6 billion attributed to corporate tax abuse by Multinational Enterprises (MNEs) and $144.8 billion to undeclared assets of wealthy individuals.
• Africa is disproportionately affected by tax abuse, losing $1.3 trillion to illicit financial flows between 1980 and 2018 and $88.6 billion annually through capital flight.
• The OECD's Two-Pillar framework is criticized for its limited revenue potential and inequitable distribution; Pillar One is estimated to raise $13 billion to $36 billion annually, with developed economies receiving 77% of additional revenue and least developed countries receiving nothing.
• Pillar Two's Global Minimum Tax (GMT) of 15% is considered too low, as most countries have rates around 25%, and the rule that the ultimate parent entity has the first claim on undertaxed profits primarily benefits high-income countries where MNEs are headquartered.
• The OECD process is described as exclusionary and undemocratic, lacking transparency and civil society participation, and allowing tax havens to influence rules.
• The UN Framework Convention on International Tax and Cooperation is presented as a democratic alternative where all 193 member states participate equally; early protocols focus on the digital economy's cross-border services and tax dispute resolution.
• South Africa is urged to leverage its 2025 G20 Presidency to advance an African agenda, specifically by negotiating minimum taxation standards for high-net-worth individuals (HNWIs) and supporting the UN Convention.

APA

Institute for Economic Justice (n.d.). From the OECD to the UN: International Tax Reform and the Role of South Africa in the G20. https://iej.org.za/wp-content/uploads/2025/06/Briefing-Note-International-Tax-Reform.pdf

Chicago

Institute for Economic Justice. From the OECD to the UN: International Tax Reform and the Role of South Africa in the G20. n.d. https://iej.org.za/wp-content/uploads/2025/06/Briefing-Note-International-Tax-Reform.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=From the OECD to the UN: International Tax Reform and the Role of South Africa in the G20 |url=https://iej.org.za/wp-content/uploads/2025/06/Briefing-Note-International-Tax-Reform.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjusticendfrom, author = {{Institute for Economic Justice}}, title = {{From the OECD to the UN: International Tax Reform and the Role of South Africa in the G20}}, institution = {Institute for Economic Justice}, url = {https://iej.org.za/wp-content/uploads/2025/06/Briefing-Note-International-Tax-Reform.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }