The Union Cabinet has approved signing of Memorandum of Cooperation (MOC) in respect of tax matters between India and the BRICS countries namely, Brazil, Russia, China and South Africa
Decision in this regard was taken at the Union Cabinet meeting chaired by Prime Minister Narendra Modi in New Delhi.
The MoC aims to promote cooperation amongst BRICS Revenue administrations on common areas of interest in tax matters and capacity building and knowledge sharing. It envisages regular interaction amongst the heads of Revenue administration of BRICS countries to continue discussion on common areas of interest.
It also strive towards convergence of views and meeting of the experts on tax matters to discuss the contemporary issues in areas of international tax. MoC will also accord confidentiality and protection to information exchanged under it.
The MoC will stimulate effective cooperation in tax matters. Moreover, the collective stand of BRICS countries can prove to be beneficial not only to member countries but also to other developing countries in long run in tax matters steered by the G20.
The Heads of Revenue of BRICS countries have been meeting regularly to discuss potential areas of cooperation in tax matters. They are also exchanging their opinions and views based on existing commitment to openness, solidarity, equality, mutual understanding, inclusiveness and mutually beneficial cooperation in tax matters. It was also affirmed in the 2016 Goa Declaration of BRICS.
The BRICS countries also had identified four areas of mutual interest on which understanding and cooperation can be further strengthened. The heads of Revenue of BRICS countries in their meeting held on sidelines of FTA plenary at Beijing, China in May, 2016 also had decided to sign MoC outlining areas of cooperation in tax matters.