Union Finance Minister Nirmala Sitharaman spoke to US Treasury Secretary Janet Yellen over the telephone on Wednesday.
"Union Finance Minister Smt. N. Sitharaman had a telecon with US Treasury Secretary Ms. Janet Yellen today. The two leaders held cordial discussions on international taxation," read a post on the official X handle of the Finance Ministry.
Earlier, both leaders met on the sidelines of the G20 Summit, which was hosted in the national capital under India's presidency over two days, September 9 and 10, last year.
During the meeting, the two leaders discussed key G20 priorities and bilateral cooperation between the two countries in addressing pressing global economic and financial issues.
It is understood that the telephonic conversation essentially veered around international taxation, which is a complex field that deals with how countries tax income, profits, and assets that cross their borders.
It encompasses various aspects such as residency and sourcing, double taxation, transfer pricing, anti-avoidance measures, and addressing base erosion and profit shifting (BEPS).
Residency and sourcing determine the tax obligations of individuals and businesses, while double taxation presents challenges when the same income is taxed in two different jurisdictions.
Transfer pricing ensures fairness in transactions within multinational corporations, and measures against tax havens and profit shifting aim to maintain tax integrity.
During the previous meeting on September 8, last year, Sitharaman and Yellen explored avenues to enhance bilateral cooperation between the two democracies in addressing and navigating urgent global economic challenges.
Sitharaman and Yellen engaged in discussions aimed at fostering international collaboration.
On July 17, 2023, the US Treasury Secretary expressed appreciation for India's emphasis on finalising the landmark two-pillar global tax agreement within the inclusive framework.
"I also value India's focus on completing the historic two-pillar global tax deal within the Inclusive Framework, and I believe that we are close to reaching an agreement. We had a productive meeting in New Delhi last fall as part of the US-India Economic and Financial Partnership, or EFP, and I look forward to convening the 10th EFP meeting," Yellen said.
