diff --git a/deployments/PowerToken.abi b/deployments/PowerToken.abi
index 64e0943..81e800e 100644
--- a/deployments/PowerToken.abi
+++ b/deployments/PowerToken.abi
@@ -829,6 +829,25 @@
     ],
     "anonymous": false
   },
+  {
+    "type": "event",
+    "name": "TaxCollected",
+    "inputs": [
+      {
+        "name": "collector",
+        "type": "address",
+        "indexed": true,
+        "internalType": "address"
+      },
+      {
+        "name": "amount",
+        "type": "uint256",
+        "indexed": true,
+        "internalType": "uint256"
+      }
+    ],
+    "anonymous": false
+  },
   {
     "type": "event",
     "name": "Tip",
diff --git a/src/PowerToken.sol b/src/PowerToken.sol
index a883929..3570853 100644
--- a/src/PowerToken.sol
+++ b/src/PowerToken.sol
@@ -117,9 +117,14 @@ contract PowerToken is
 
         uint256 tax = _getTaxAmount(taxBasisPoints, amount);
 
-        _transfer(address(this), ADMIN, tax);
+        uint256 airdropAmount = amount - tax;
 
-        _transfer(address(this), to, amount - tax);
+        if (tax > 0) {
+            _transfer(address(this), ADMIN, tax);
+            emit TaxCollected(ADMIN, tax);
+        }
+
+        _transfer(address(this), to, airdropAmount);
 
         emit AirdropTokens(to, amount);
     }
@@ -147,7 +152,10 @@ contract PowerToken is
             _feedBalances[feedId] += tipAmount;
         }
 
-        _transfer(msg.sender, ADMIN, tax);
+        if (tax > 0) {
+            _transfer(msg.sender, ADMIN, tax);
+            emit TaxCollected(ADMIN, tax);
+        }
 
         _transfer(msg.sender, receiver, tipAmount);
 
@@ -228,9 +236,13 @@ contract PowerToken is
      */
     function _issuePoints(address to, uint256 amount, uint256 taxBasisPoints) internal {
         uint256 tax = _getTaxAmount(taxBasisPoints, amount);
-        _transfer(address(this), ADMIN, tax);
-
         uint256 points = amount - tax;
+
+        if (tax > 0) {
+            _transfer(address(this), ADMIN, tax);
+            emit TaxCollected(ADMIN, tax);
+        }
+
         _pointsBalancesV2[to] += points;
         _transfer(address(this), to, points);
 
diff --git a/src/interfaces/IEvents.sol b/src/interfaces/IEvents.sol
index 45fcd96..bbee3e9 100644
--- a/src/interfaces/IEvents.sol
+++ b/src/interfaces/IEvents.sol
@@ -10,11 +10,16 @@ interface IEvents {
      * @dev Emitted when points are tipped from one address to another.
      */
     event Tip(address indexed from, address indexed to, bytes32 indexed feedId, uint256 amount);
-
     /**
      * @dev Emitted when points are airdropped to an address.
      */
     event AirdropTokens(address indexed to, uint256 indexed amount);
+    /**
+     * @dev Emitted when tax is collected.
+     * @param collector The address that collected the tax.
+     * @param amount The amount of tax collected.
+     */
+    event TaxCollected(address indexed collector, uint256 indexed amount);
     /**
      * @dev Emitted when points are withdrawn by feed id.
      */
diff --git a/test/PowerToken.t.sol b/test/PowerToken.t.sol
index 6d84aca..7c1a203 100644
--- a/test/PowerToken.t.sol
+++ b/test/PowerToken.t.sol
@@ -95,6 +95,7 @@ contract PowerTokenTest is Utils, IErrors, IEvents, ERC20Upgradeable {
         _token.mintToTreasury(address(_token), amount);
 
         expectEmit();
+        emit TaxCollected(appAdmin, expectedTax);
         emit DistributePoints(alice, amount - expectedTax);
         vm.prank(appAdmin);
         _token.mint(alice, amount, taxBasisPoints);
@@ -212,6 +213,8 @@ contract PowerTokenTest is Utils, IErrors, IEvents, ERC20Upgradeable {
 
         expectEmit();
         emit Transfer(address(_token), appAdmin, tax);
+        emit TaxCollected(appAdmin, tax);
+
         emit Transfer(address(_token), alice, amount - tax);
         emit DistributePoints(alice, amount - tax);
         vm.prank(alice);
@@ -330,6 +333,7 @@ contract PowerTokenTest is Utils, IErrors, IEvents, ERC20Upgradeable {
 
         expectEmit();
         emit Transfer(address(_token), appAdmin, tax);
+        emit TaxCollected(appAdmin, tax);
         emit Transfer(address(_token), alice, amount - tax);
         emit AirdropTokens(alice, amount - tax);
         vm.prank(appAdmin);