Videoconference, 21 January 2025 — An informal information session was held with members and observers of the ECAC Economic Working Group in January. The session began with a comprehensive presentation by invited experts from IATA, who considered the proposals submitted by the United Nations Committee of Experts on International Cooperation in Tax Matters to Article 8 of the United Nations Model Convention.
Discussion then focused on the potential implications of such changes for the aviation sector. Principally, airlines who – due to their unique, cross-border air transport operations – operate effectively under the current global taxation model for their income that only uses residence-based taxation. IATA conveyed the industry’s concerns regarding the possibility of States opting for source taxation instead of residence taxation for air transport. It also raised their concerns about the next steps in this area under the UN, particularly in cooperation with external stakeholders and other UN bodies, including ICAO.
It was agreed that the working group would continue to monitor this situation closely and give consideration to relevant national and international discussions on the matter.