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International Monetary Fund – Fiscal Affairs Department, Tax Policy (IMF)

Description

The IMF shares its expertise with member countries by providing technical assistance and training in a wide range of areas, such as central banking, monetary and exchange rate policy, tax policy and administration, and official statistics. The objective is to help improve the design and implementation of members' economic policies, including by strengthening skills in institutions such as finance ministries, central banks and statistical agencies.

The IMF provides technical assistance and training in four main areas:

  • Monetary and financial policies;
  • Fiscal policy and management;
  • Compilation, management, dissemination, and improvement of statistical data; and
  • Economic and financial legislation.

Negotiation Support General

Regional focus:

Global.

Assistance criteria:

In general, 50 percent of the voting power of the Executive Board is required.

Sector focus:

General investments, with a strong program on extractive industries.

Collaboration with partners:

Yes, but only indirectly for actual contract negotiations – IMF support comes in the form of advice on the fiscal policy framework for terms which may help guide contract negotiations.

Types of expertise:

The IMF has in-house economic expertise and also contracts external experts as required in relation to the following:

  • Economic, financial analysis/ financial modeling;
  • Good governance (anti-corruption/stakeholder engagement);
  • Fiscal and tax management; and
  • Accounting and financial reporting.

The IMF additionally contracts external lawyers to provide advice when required.

Number of in-house experts:

Overall, 2,500 economists, with 25 professionals in the tax policy department (4-5 with a legal background).

Length of involvement:

1 day to 36 months, with 3-4 months on average.

Fee/non-fee based support:

Non-fee based. Countries may additionally contract technical assistance through the IMF and pay for it.

Speed of response:

The general planning cycle involves a response within around six months. Emergency responses are available within one week.

Practical constraints:

Legal constraints – the IMF may not actively promote the interest of one country against another or against a state-owned company.

Types of negotiation support

Setting the Legal & Policy Framework Stage:

The IMF provides fiscal policy support related to contract negotiations, especially with regards to extractive industries tax policy. It also provides sector wide analysis.

Overall, it conducts about 60-70 projects/year, some of which may be long-term.

The projects are led by staff from headquarters and supported by contracted experts.

The IMF also provides training on financial modeling and fiscal regime design.

So far the focus has been on the oil, gas and mining sectors, even though there is no official sector focus.

Pre-Negotiation Stage:

No.

Contract Negotiation Stage:

No

Implementation & Monitoring Stage:

No

Advancing Knowledge-Sharing and Management:

Yes – Through its research activities, the IMF provides material and knowledge for experts working on contract negotiation support.

Provider Type:

Support Providers