BRICS Tax Talks Gain Importance as Global Rules Are Renegotiated

Finance Minister Nirmala Sitharaman on Wednesday said cooperation among BRICS countries on international taxation has become particularly important as governments around the world work on changes to global tax rules.

Addressing the BRICS Tax Heads Meeting in New Delhi, Sitharaman said BRICS economies have an important perspective to bring to international tax negotiations, particularly as large developing economies and representatives of the Global South. She said their participation would be important for creating tax arrangements that are fair and sustainable.

The meeting was held under India’s 2026 BRICS chairship. The grouping currently has 11 members Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa and the UAE along with 10 partner countries.

At the recent BRICS Summit in New Delhi, member countries reaffirmed their commitment to a fair, inclusive, stable and efficient international tax system. They also agreed to strengthen cooperation on emerging tax challenges and engage constructively in international forums, including negotiations under the proposed UN Framework Convention on International Tax Cooperation.

India has made international taxation one of the key areas of its BRICS chairship. Two working groups have been established, focusing on international taxation and transfer pricing, and revenue statistics. The latest meeting also considered the scope of work for these groups.

Sitharaman highlighted three areas for greater cooperation technology, administration and people. She said digital infrastructure and data could help make tax administration more precise and accessible, while common standards and institutional mechanisms could strengthen cooperation between member countries.

India has also shared several of its tax administration practices with BRICS partners. These include faceless assessment, pre-filled income-tax returns, real-time invoice authentication and AI-enabled assistance for taxpayers. The initiatives are being shared through the BRICS Tax Collaboration Tool.

The proposed UN Framework Convention on International Tax Cooperation is aimed at developing a more inclusive and transparent approach to global taxation. Negotiations on the convention began in 2025, with the text expected to be finalised by 2027, according to the report.

Sitharaman said the work undertaken during India’s BRICS chairship should provide a foundation for the next chair to build upon. The finance ministry also confirmed that she addressed the BRICS Tax Heads Meeting in New Delhi on September 23.

The discussions underline the growing focus within BRICS on taxation, digitalisation and cooperation among developing economies as countries negotiate the future framework of international taxation.