India Proposes Two BRICS Working Groups On International Taxation, Revenue Statistics

New Delhi, Sep 23 (KNN) India has proposed working groups on international taxation and transfer pricing and revenue statistics to create institutional mechanisms that continue beyond its 2026 BRICS chairmanship. The BRICS New Delhi Declaration has welcomed the establishment of both groups.

BRICS tax administrations need to strengthen their collective voice in the ongoing renegotiation of international tax rules, Finance Minister Nirmala Sitharaman said on Wednesday, as India proposed the two new working groups on global taxation.

Addressing a meeting of BRICS tax heads in New Delhi, Sitharaman said, “The rules of international taxation are being renegotiated,” referring to multilateral talks, including the proposed UN Framework Convention on International Tax Cooperation, the Business Standard reported. 

“The decisions made in these processes over the next few years will shape cross-border taxation for a generation,” she added.

Focus On Cross-Border Tax Issues

Revenue Secretary Arvind Shrivastava noted that the international taxation and transfer pricing group would provide a permanent platform for member administrations to exchange experience on treaty interpretation, transfer pricing audits, advance pricing agreements and mutual agreement procedures. It would also facilitate coordination on multilateral tax negotiations.

The revenue statistics group will work on a framework for assessing tax-system performance that takes into account the economic and fiscal structures of BRICS economies.

Sitharaman said, “Transfer pricing disputes cost developing countries’ administrations disproportionately. Revenue frameworks that don’t fit our system realities distort how we are seen and how we see ourselves.”

The proposed mechanisms are intended to provide continuity as the BRICS chairmanship changes. China is scheduled to take over the chairmanship in 2027.

Digital Tax Cooperation

The meeting also discussed institutionalising the BRICS Young Tax Professionals Programme as an annual event at the National Academy of Direct Taxes in Nagpur. 

India has also developed initiatives including the BRICS Tax Collaboration Tool, Tax Knowledge Hub and Cross-Learning Lab, while a Tax Support Network is being developed.

Sitharaman highlighted India's experience with digital tax administration, including faceless assessment, pre-filled returns, real-time invoice authentication and AI-enabled taxpayer assistance, as areas for knowledge sharing among BRICS members.

(KNN Bureau)