SYDNEY: World's 20 leading economies today agreed to start automatic sharing of tax information by end 2015, while emphasising those multinational corporations is taxed in countries where they earn their profits.

Amid large number of tax avoidance cases, India and other economies have been pressing for effective system for getting financial information from other nations, especially low tax jurisdictions.

Shifting corporate profits from high-tax countries to low tax jurisdictions is being debated worldwide in the backdrop of several large MNCs not paying fair share of taxes anywhere.

"We are committed to a global response to Base Erosion and Profit Shifting (BEPS) based on sound tax policy principles. Profits should be taxed where economic activities deriving the profits are performed and where value is created," said the communique issued after the meeting of G20 finance ministers and central banks governors concluded.

While endorsing Common Reporting Standard for automatic exchange of tax information on a reciprocal basis, G20 said: "We expect to begin to exchange information automatically on tax matters among G20 members by the end of 2015."

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