BRICS Agree on Memorandum of Cooperation in Tax Matters

During the annual meeting of the heads of the BRICS revenue administrations held in Hangzhou on July 28, tax officials from Brazil, Russia, India, China and South Africa signed a memorandum of cooperation to enhance their mutual work on international tax matters.

Background: International Taxation

The countries noted that the 2016 G20 Hangzhou Summit underscored the importance of making tax policy being more growth-friendly and supported international tax cooperation to achieve a globally fair and modern international tax system to promote growth and tax certainty. The Communiqué of BRICS Heads of Revenue Meeting in Mumbai from December 2016 stated that the countries support the initiatives towards reaching a globally fair and universally transparent tax system.

Reaching an Understanding

This would be achieved under cooperation among Participants in tax dispute settlements, taxpayer rights protection and high-quality tax services could build a friendly environment for trade and investment to foster economic growth. The countries aspire to strengthen their capacity through the sharing of relevant information, experience and initiatives and the development of a structured framework for cooperation.

The countries have reached understanding on the following points

  1. COORDINATION IN INTERNATIONAL FORUMS
  2. CAPACITY BUILDING
  3. KNOWLEDGE SHARING
  4. REGULAR INTERACTION
  5. GOVERNANCE
  6. COSTS
  7. CONFIDENTIALITY
  8. CONSULTATIONS AND AMENDMENTS
  9. TERM OF AGREEMENT

India's GST Appreciated by the BRICS Countries

During the meeting, India's efforts on GST reform has been appreciated by the BRICS countries. "The leaders and representatives from BRICS countries were inquisitive about GST Reforms introduced in India and appreciated efforts of India in bringing about this major reform," The Business Standard reported.

Source: Memorandum Of Cooperation, Business Standard

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