UN Treaty Move Gives New Options for Taxing Air, Sea Transport

Countries looking for revenue from taxing international air and marine traffic face difficult questions—and risk losing some of that traffic—as they consider using new guidance from the United Nations in negotiating bilateral tax treaties.

A revised UN model tax treaty gives revenue-hungry countries that are trip origins or destinations a new bargaining chip to increase their share of tax from the transport sector during treaty talks, backers of the new guidance say. But industry groups warn the new model will influence where they operate if it’s codified in treaties.

The global airline industry is better served by existing tax treaties ...