Context

KPMG International convened the Global Responsible Tax working group in April 2025. Held under the Chatham House Rule, the meeting brought together a diverse group of stakeholders to reflect on where the responsible tax agenda stands today — and where it might go next. Participants explored a range of challenges and opportunities, from the fracturing of global multilateralism to the growing demands on tax systems to support green transitions and technological change. Below is a synthesis of the key themes that emerged, reflecting personal insights and sector-specific perspectives, not the views of any single organization.

Executive summary:

  1. Multilateralism is under strain. Global tax cooperation is fragmenting, but alternative coalitions — led by the EU and Global South — are emerging.
  2. Economic and political headwinds have delayed environmental tax reform, though sectoral breakthroughs (e.g. shipping carbon pricing) show room for progress.
  3. Amid rising revenue demands, fairness, predictability, and administrative capacity are essential to stabilize and strengthen tax systems.
  4. Artificial intelligence offers efficiency but raises major governance and trust challenges, demanding coordinated oversight and transparency.
  5. Global mobility is creating new tax complexities, with a lack of dialogue between businesses and authorities leading to growing uncertainty.
  6. While public demand for taxing extreme wealth is growing, political and technical barriers continue to impede meaningful reform.
  7. In a fragmented world, minimum viable agreements, trust-building, and institutional legitimacy offer a pragmatic path forward.

Cracks in the global order

Multilateralism is faltering — but it’s not over yet.

Participants expressed concern about the weakening of global cooperation, especially given US retrenchment from some key tax initiatives. However, several speakers noted the resilience of multilateral frameworks like the OECD’s Inclusive Framework and the emergence of EU-led and Global South coalitions willing to continue the work. The consensus was that global frameworks will persist — with or without full US engagement.

There was also a recognition that the fragmentation of international cooperation may make way for a more regional or sectoral approach, with blocs like the EU playing a leading role in shaping new norms.

A pause in the green transition

Climate-aligned tax reform is slowing — but not stopping.

While the green agenda is politically weakened in many countries, the group noted that progress has not stopped altogether. The new carbon pricing mechanism agreed through the International Maritime Organization was cited as an important breakthrough, especially given its backing by both industry and states.

Still, participants voiced concern about short-term economic pressures delaying urgent climate tax reforms, especially in areas like carbon taxation, fossil fuel subsidy reform, and environmental levies. Others argued that a shift from mitigation to adaptation — especially in the Global South — means new types of fiscal instruments are needed.

Trust, transparency and tax certainty

Responsible tax begins with fairness and predictability.

At a time of extreme geopolitical uncertainty and economic insecurity, several participants urged a return to the basics: making tax systems predictable, transparent and fair. Calls were made for renewed focus on improving local tax systems, enhancing administrative capacity, and embedding trust through better engagement between tax authorities and citizens.

The growing disconnect between taxpayer expectations and tax administration practices — especially with the adoption of AI — was highlighted as a key area for attention.

AI and the new frontier of tax administration

Technology is reshaping the tax landscape faster than policy can keep up.

AI was seen as both a boon and a risk: helping tax authorities improve compliance and efficiency, while raising difficult questions about governance, data accuracy and public trust. Countries buying off-the-shelf AI solutions from a handful of providers may need to work together to develop shared governance standards.

Participants called for transparency around how AI is being used in tax collection, especially when it relies on data sources unknown to the taxpayer. The governance of these tools — and their interaction with policy — will be critical in the years ahead.

Global mobility and fragmentation

Where people work — and how — is changing the tax game.

With more employees working remotely across borders, new complexities are emerging around permanent establishment (PE), personal taxation and payroll. Participants expressed frustration that many tax authorities are either unwilling or unable to engage constructively with businesses trying to do the right thing.

There is a growing need for cooperation to address mobility-related tax risks. Participants suggested that tax authorities must be enabled to dialogue with businesses to avoid double taxation and legal uncertainty — and support tax compliance in a rapidly changing world of work.

Wealth taxes and inequality: still on the agenda

Rising inequality demands bold tax action — but political headwinds remain strong.

While there is increasing public pressure to tax extreme wealth, political appetite appears to be waning. Several contributors highlighted a lack of progress on implementing exit taxes, closing loopholes or curbing tax havens. Without international cooperation, it was argued, wealth will remain mobile and beyond the reach of many domestic tax systems.

Still, the issue remains live, with proposals for new enforcement mechanisms, enhanced transparency and AI-driven data sharing offering potential pathways forward.

A foundation of basics

When everything is in flux, go back to fundamentals.

Amid all the noise, one strong current ran through the discussion: a return to foundational tax principles. Predictability. Fairness. Simplicity. Adequate capacity. Several participants advocated for shifting focus from grand designs to core system integrity — especially in low- and middle-income countries still struggling to reach baseline revenue collection thresholds.

This back-to-basics approach, it was suggested, could build common ground among stakeholders and offer a stable platform for more ambitious reforms in the future.

Next steps

This year, the Global Responsible Tax Program will focus on digging deeper into some of the big questions raised in recent discussions. We’re planning a research piece to explore differing global attitudes to tax governance. We’ll also take a closer look at the ethical frameworks for the use of AI in tax, and what responsible innovation really looks like. Another strand of work will examine how different countries manage their fiscal. We will also be looking at tax and tariffs, to help untangle some of the more common misunderstandings. And of course, we’re keen to hear from you — please do share your thoughts or suggestions on other areas you think we should be exploring.