2 hrs ago
BRICS Plans New Tax Working Groups on Transfer Pricing
BRICS countries plan to create two groups to work on tax issues.
One group will study international taxation and transfer pricing.
The other will focus on government revenue statistics.
Transfer pricing involves setting prices between related companies in different countries.
Finance Minister Nirmala Sitharaman said disputes over these prices can be especially difficult for developing countries.
The groups will let countries share their experiences and work together over time.
They are intended to continue after India’s period leading BRICS ends.
India also wants BRICS countries to have a stronger voice when new global tax rules are negotiated.
The groups may also discuss technology and ways to make tax systems more consistent.
India proposed BRICS working groups on international taxation and transfer pricing, and on revenue statistics.
Nirmala Sitharaman said transfer-pricing disputes disproportionately burden developing-country tax administrations.
The groups would provide a continuing platform for cooperation beyond India’s BRICS chairship.
Tax experts will share experience on treaty interpretation, audits, advance pricing agreements and dispute-resolution procedures.
India said BRICS needs a stronger collective voice in negotiations over future international tax rules.
- Who
- India’s Finance Minister Nirmala Sitharaman, Revenue Secretary Arvind Shrivastava and tax authorities from BRICS countries.
- What
- BRICS countries announced plans for working groups on international taxation and transfer pricing, and on revenue statistics.
- Where
- New Delhi, at a meeting of the BRICS heads of tax authorities.
- When
- The meeting took place on Wednesday, September 23; China is scheduled to assume the rotating BRICS Presidency in 2027.
- Why
- The initiative aims to address common tax challenges, support developing-country administrations and give BRICS a stronger collective voice in global tax negotiations.
Key facts
- Proposed groups
- International Taxation and Transfer Pricing; Revenue Statistics
- Main concern
- Transfer-pricing disputes disproportionately burden developing-country tax administrations.
- Areas of cooperation
- Treaty interpretation, transfer-pricing audits, Advance Pricing Agreements and Mutual Agreement Procedures
- Institutional goal
- Maintain cooperation beyond India’s BRICS chairship
- Global process
- International tax rules are being renegotiated through multilateral processes, including the United Nations Framework Convention on International Tax Cooperation.
- India’s tax technology examples
- Faceless assessment, pre-filled returns, real-time invoice authentication and artificial-intelligence-enabled taxpayer assistance
- Future presidency
- China is scheduled to assume the rotating BRICS Presidency in 2027
Quotes
Nirmala Sitharaman
India’s Union finance minister
“The decisions made in these processes over the next few years will shape cross-border taxation for a generation. BRICS economies -- as source jurisdictions, as large developing economies, as countries that have built significant domestic tax capacity from a low base -- have a perspective on those negotiations that is essential to their fairness and their durability.”
livemint.com
“the International Taxation and Transfer Pricing Working Group creates a permanent Brics platform for sharing experience on treaty interpretation, transfer pricing audit, APA and MAP mechanisms, and the multilateral negotiations including the UNFCITC, where our collective voice is needed and currently insufficient.”
livemint.com
Sources
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