India's Finance Minister Nirmala Sitharaman has called for BRICS economies to play a more significant role in establishing the emerging framework for global taxation. Speaking at the BRICS Tax Head Meeting 2026, Sitharaman underscored that the rules governing international taxation are currently being renegotiated, with decisions poised to influence cross-border taxation for a generation.
Shaping a Fair International Tax Architecture
Sitharaman emphasized that the participation of BRICS countries is essential for creating a fair and durable international tax architecture. She noted that these nations, acting as major developing economies and source jurisdictions, bring a unique perspective to negotiations like the UN Framework Convention on International Tax Cooperation. Their insights are vital for ensuring that new revenue frameworks accurately reflect their fiscal realities and do not disproportionately burden their tax administrations.
The Finance Minister highlighted that BRICS economies have built significant domestic tax capacity from a relatively low base, making their viewpoint indispensable for the fairness and longevity of any new international tax rules.
Proposed Working Groups for Enhanced Cooperation
To deepen tax cooperation among member countries, India, which hosted the BRICS summit this year, has proposed two dedicated working groups:
- International Taxation and Transfer Pricing Working Group: This group will facilitate discussions on treaty interpretation, transfer pricing audits, advance pricing agreements, and mutual agreement procedures. It will also serve as a platform for exchanges on multilateral tax negotiations, particularly addressing disputes that often burden developing nations.
- Revenue Statistics Working Group: Tasked with developing a framework for measuring fiscal performance, this group aims to ensure that assessments accurately reflect the economic and fiscal realities of BRICS economies.
Sitharaman stated that these groups are designed to provide a sustained institutional platform, ensuring continuity beyond India's current initiative as future countries assume the BRICS presidency, with China scheduled to take over in 2027.
“The rules of international taxation are being renegotiated. There are several multilateral tax negotiations including the UN Framework Convention on International Tax Cooperation under active negotiation,” Sitharaman said, stressing the importance of BRICS input.
These efforts align with a broader push from developing economies and countries in the Global South to secure a greater voice in global tax rule-making, particularly concerning the taxation of cross-border economic activity and the allocation of taxing rights between different jurisdictions.