Taxation

Developing countries face an urgent need for financing to achieve the Sustainable Development Goals, tackle climate change, and safeguard biodiversity — with annual requirements nearing USD 6 trillion by 2030. As governments grapple with rising debt burdens and constrained fiscal space, strengthening domestic resource mobilization through well-designed tax systems becomes increasingly critical.  

A world where people and the planet thrive depends on effective tax policy and administration – systems that raise essential government revenues with fairness and transparency, while attracting investment that drives long-term development. When well designed, tax policies could also help direct investment toward clean energy, resilience, and nature-positive outcomes.  

However, these goals are often impeded by limited government capacity, poorly designed fiscal policies, and aggressive tax planning by corporations. At the international level, the tax landscape is transforming in response to these challenges, and to the demand for a more equitable system. Efforts led by organizations such as the OECD and the United Nations aim to address tax avoidance by multinational corporations and ensure they contribute their fair share, driving progress toward a global tax system that supports sustainable development. 

Our Work on Tax

IISD’s work on taxation strengthens policies and enhances capacities so governments can fund their sustainable development, climate, and biodiversity goals, while attracting investments that support these objectives.  

Our work focuses on developing countries where financial pressure on the governments is most severe. It is part of IISD’s broader efforts seeking to address fiscal challenges, including our work on sovereign debt, recognizing how tax policy and debt management work together to drive long-term fiscal stability and development. Our tax work is organized into three key workstreams:

• Global Mining Tax Initiative | Working with resource-rich developing countries to realize the full financial benefits from their mineral resources. This program is delivered by the Intergovernmental Forum on Mining, Minerals Metals and Sustainable Development (IGF) and has been hosted by IISD since 2015.
• Tax Incentives and Sustainable Investment | Partnering with developing country governments to provide in-depth, multi-disciplinary support to evaluate and reform tax incentives as an investment promotion tool. This program is a collaboration with IISD’s Investment Law and Policy Program.
• Green Fiscal Policy | Partnering with developing countries to use fiscal policies to drive an energy transition, secure energy supply and reduce environmental harm.