Overview
- BRICS leaders on Wednesday endorsed India's proposal to create two standing bodies: an International Taxation and Transfer Pricing Working Group and a Revenue Statistics Working Group.
- The transfer-pricing group will enable members to share practices on treaty interpretation, audits, advance pricing agreements and mutual agreement procedures to reduce costly disputes.
- The revenue statistics group will design a framework to measure tax-system performance that reflects the economic and fiscal realities of large developing economies.
- Finance Minister Nirmala Sitharaman said transfer-pricing disputes place an unequal burden on developing-country tax administrations and flagged technology, administration and people as priority themes for reform.
- Next steps include operationalizing the groups, coordinating their work with UN and other multilateral tax talks, and ensuring continuity when China assumes the BRICS presidency in 2027.