News Express

BRICS Tax Ministers" Meeting Held to Enhance Cooperation to Address Challenges of Digital Economization
Release Date:2021-09-20

On the evening of September 15, the annual BRICS Tax Ministers' Meeting was held online, where BRICS tax ministers exchanged views and discussed the next step of tax cooperation around addressing the tax administration challenges brought by the epidemic and the digitization of the economy.

The meeting adopted the Communiqué of the BRICS Tax Directors General Meeting. The communiqué pointed out that since the outbreak of the COVID-19 pandemic, the global digitalization process has further accelerated, driving innovative changes in the way of production and life and national governance, and countries around the world, including BRICS countries, have joined hands to fight the epidemic with the help of digitalization to address common challenges.

The Communiqué appreciates the release of the OECD's discussion report on Tax Administration 3.0 and sees the need to further strengthen cooperation and communication among national tax authorities. The Communiqué emphasized that the tax administrations of Brazil, Russia, India and South Africa will fully support the State Administration of Taxation of China in hosting the meeting of BRICS tax directors and tax experts during China's BRICS presidency in 2022.

Wang Jun, Director General of the State Taxation Administration of China, said at the above meeting that the recently released New Delhi Declaration of the 13th BRICS Summit stated that BRICS countries must prioritize the efficient application of technology and data in all developments and encourage deeper cooperation in this regard. This sets the focus and direction for the tax authorities of the five countries to deepen cooperation in the field of taxation in the context of the new epidemic challenges and the digital age. To this end, he proposed a four-pronged cooperation initiative.

First, strengthen cooperation in epidemic prevention and control, and give full play to the role of taxation and contribute to taxation in areas such as helping joint R&D, cooperative production and mutual recognition of standards for vaccines.

Second, strengthen cooperation in information technology construction, establish an exchange mechanism for tax information technology construction in BRICS countries, enhance communication and cooperation by holding tax information technology forums and other means, and strengthen exchanges with G20, OECD and other important international organizations to widely absorb and learn from advanced ideas and practical experience in tax information technology.

Third, strengthen mutual cooperation in tax collection and administration, consolidate the achievements of multilateral cooperation in taxation among BRICS countries, continuously improve tax certainty among countries, actively eliminate tax-related disputes, and support enterprises to invest and prosper among each other. Deepen the application of big data, continue to increase joint efforts to combat cross-border tax avoidance and other cases, and safeguard the tax rights and market order of each country.

Fourth, strengthen cooperation in capacity building, continue to enhance mutual learning and learning among tax authorities of BRICS countries, jointly improve tax collection and management capabilities, and actively provide technical assistance and training support to other developing countries.

Daniel Egorov, head of the Russian Federal Tax Service, said at the meeting that the sharing of tax experience under the framework of BRICS cooperation is very valuable, and he looks forward to improving the quality and efficiency of tax collection and administration and achieving automatic compliance of taxpayers by deepening the digital exchange and cooperation with BRICS countries in taxation in the future.

As an emerging economy, Brazil attaches great importance to tax cooperation with BRICS countries, and all countries should work together to deepen cooperation to meet the opportunities and challenges brought by the digital economy, said Decio Pialarisi, Deputy Director General of the Brazilian Federal Tax Agency.

Edward Kieswetter, Director General of the South African Revenue Service, said at the meeting that tax cooperation among BRICS countries is crucial and has become a benchmark in the field of international tax cooperation, and he looks forward to more concrete and practical cooperation after the epidemic, as well as face-to-face exchanges in China next year.

The BRICS countries account for 42% of the world's total population and 24% of the global economy. This year marks the ninth year of the BRICS tax cooperation mechanism, and the BRICS tax cooperation has been deepening in recent years. At present, China and the other four BRICS countries have signed tax agreements, constantly optimizing tax services and effectively protecting the legitimate rights and interests of "going global" and "bringing in" enterprises.