Finance Minister Nirmala Sitharaman on Wednesday highlighted the importance of cooperation among BRICS countries on international taxation, saying the grouping’s efforts come at a time when global tax rules are being renegotiated.
Speaking at the BRICS tax heads meeting in New Delhi, Sitharaman said BRICS countries, as large developing economies and major sources of economic activity, have an important perspective to contribute to discussions on the future of international taxation.
She said the group’s engagement could play a significant role in multilateral tax negotiations and help strengthen the interests of developing economies at international forums.
BRICS currently has 11 members — Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia and South Africa, along with the UAE. The grouping also has 10 partner countries.
At the recent BRICS Summit held under India’s chairship 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 international tax challenges and participate constructively in forums such as the UN Framework Convention on International Tax Cooperation.
The proposed UN tax convention is intended to create a more inclusive and transparent framework for international taxation. The UN General Assembly approved a resolution in 2023 to begin work on a new convention, with negotiations starting in 2025. Its text is expected to be finalised by 2027.
During India’s BRICS chairship, two working groups were established to focus on international taxation and transfer pricing, and revenue statistics. The grouping has also expanded cooperation through initiatives involving young tax professionals and the BRICS women in tax network.
Sitharaman identified three broad areas for the BRICS tax track: technology, administration and people.
On technology, she highlighted the use of data and digital infrastructure to improve tax administration, increase accessibility and reduce dependence on individual discretion. On administration, she stressed the importance of governance structures, common standards and practical tools to strengthen cooperation. The third focus area involves investing in tax professionals and building stronger institutional relationships.
India has shared several of its tax administration practices with BRICS partners through the BRICS tax collaboration platform. These include faceless assessment, pre-filled tax returns, real-time invoice authentication and artificial intelligence-enabled assistance for taxpayers.
The meeting also considered the scope of the two new working groups dealing with international taxation and transfer pricing, and revenue statistics.
Sitharaman said the objective of India’s chairship was not limited to decisions taken during its tenure but also to create a foundation that could be developed further by the next BRICS chair.
The discussions come as countries continue negotiations over international taxation rules, including issues related to cross-border economic activity, transfer pricing and cooperation between tax authorities.
Reader Comments 0