New Delhi The effort by BRICS countries effort to find common ground on international taxation is significant at a time when tax-related rules are being renegotiated around the world, finance minister Nirmala Sitharaman said.
Speaking at the BRICS tax heads meeting in New Delhi on Wednesday, the finance minister said the grouping’s decisions will play a significant role in multilateral tax negotiations. They committed for constructive engagement in international forums like the UN Framework Convention on International Tax Cooperation (UNFCITC).
“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 and that is essential to their fairness and their durability,” she said. During the recently held BRICS Summit under India’s chairship in New Delhi, the countries reaffirmed their “commitment to a fair, inclusive, stable, and efficient international tax system” and resolved to strengthen cooperation among BRICS members in addressing evolving international tax challenges.
“What we decide upon today is not the purpose of India’s chairship. In this context, Sitharaman highlighted three focus areas of the BRICS tax track this year: “Technology: The use of data and digital infrastructure to make tax administration more precise, more accessible and less dependent on the discretionary power of individuals. Administration: The governance structures, the shared standards, the practical tools that give a cooperation like ours a durable institutional shape. People: The investment in the men, women and the young of our institutions and in the relationships between the individuals who carry them forward. She informed that the Tuesday meeting will look at the scoping documents for two new working groups – one on the international taxation and transfer pricing, and the other on revenue statistics. “I’m proud of what this cooperation has built. I’m grateful to each of your governments for the seriousness,” she added.
The finance minister said India has shared its experiences such as faceless assessment, pre-filled returns, real-time invoice authentication, and AI-enabled taxpayer assistance with BRICS partners through the BRICS tax collaboration tool. It is meant to build on what has been achieved so far and what can be the foundation that the next chair inherits,” she said.
UN Tax Convention Negotiations Underway
In 2023, the UN General Assembly approved a resolution to initiate talks on a new tax convention aimed at creating a fairer and more inclusive global taxation system. Negotiations for this treaty, known as UNFCITC, commenced in 2025, with expectations to finalize the text by 2027. This initiative seeks to enhance transparency and equity in international tax practices.
