Brics to form working groups on taxation, transfer pricing and revenue data

Brics countries have agreed to establish working groups focused on international taxation, transfer pricing and revenue statistics, in a move aimed at deepening cooperation on tax matters among the bloc's members.

India, which flagged the initiative, said the groups would help developing economies deal with the difficulties thrown up by cross-border taxation. According to New Delhi, the panels would also allow these countries to present a more unified position in global negotiations over tax rules.

The decision covers three distinct areas. International taxation concerns how countries tax income and transactions that span their borders. Transfer pricing relates to the prices set for dealings between units of the same company located in different jurisdictions, a long-running source of disputes. Revenue statistics involve the collection and sharing of data on tax receipts.

By pooling work on these issues, the Brics members aim to strengthen their joint capacity and coordination. The working groups are expected to give developing economies a more effective platform as international tax norms continue to be shaped.