BRICS leaders, following their summit held October 15–16, called for tax policies that promote inclusive growth and expressed support for the implementation of the OECD/G20 base erosion profit shifting (BEPS) plan combating multinational corporation tax avoidance.
“We highlight the need to use tax policy and public expenditure in a more growth-friendly way, taking into account fiscal space available, that promotes inclusiveness, maintains resilience and ensures sustainability of debt as a share of GDP,” said the leaders of the BRICS countries – Brazil, Russia, India, China and South Africa – in a communique following their Gao, India, summit.
The leaders said they supported the implementation of BEPS project “with due regard to the national realities of the countries.” Profit should be taxed in the jurisdiction where economic activity is performed and value is created, they said.
“Aggressive tax planning and tax practices hurt equitable development and economic growth,” they added.
The leaders also encouraged countries and international organizations to assist developing countries improve their tax capacity, affirmed the BRICS countries’ commitment to the common reporting standard for automatic exchange of tax information, and expressed support for increased participation by developing countries in the ongoing discussions on international taxation.
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