The German Federal Ministry for Economic Cooperation and Development (BMZ) has launched the International Tax Compact (ITC) in 2009 as a development policy initiative to improve domestic revenue mobilisation (DRM) in partner countries, strengthening national tax systems and fighting tax evasion and tax avoidance through international consultation, cooperation and knowledge sharing in the area of tax development. BMZ commissioned the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH to facilitate the ITC Secretariat. From April 2017 to September 2019, the European Commission provided co-financing to the ITC. Since November 2017, the Bill and Melinda Gates Foundation has been providing co-financing to one initiative of the ITC.
During the first six years, the ITC focused on developing policy studies, promoting networking and dialogue between relevant actors in the tax and development arena, fostering capacity development, and organising international events on tax-related topics for partner countries and development partners.
With the emergence of a myriad of new initiatives, organisations and projects in tax and development – such as the Platform for Collaboration on Tax (PCT), the Knowledge Sharing Platform (KSP), the OECD BEPS (Base Erosion and Profit Shifting) project, the OECD/G20 Inclusive Framework on BEPS – in recent years, the ITC has adapted its profile and service delivery.
More precisely, the ITC took over the facilitation of the secretariats of the Addis Tax Initiative (established in 2015), the Network of Tax Organisation (established in 2018) and the Domestic Revenue Mobilisation (DRM) Innovation Fund (established in 2018) and thereby adopted its profile.