UAE commences second stage of its work to meet international standards for the exchange of information for tax purposes

May 29, 2014 11:26 am

The UAE has commenced the second stage of its work on the exchange of information for tax purposes based on the positive assessment made during the Global Forum on Transparency and Exchange of Information.

The announcement took place during the Ministry of Finance’s (MoF) recent participation in the 15th Meeting of the OECD’s Global Forum Peer Review Group in Malta. The meeting was attended by HE Khalid Ali Al Bustani, Assistant Undersecretary of International Financial Relations Sector at MoF; Majid Ali Omran, Director of International Financial Relations Department at MoF in addition to the participation of representatives from the Dubai International Financial Centre and UAE Free Zones.

This announcement is important as it supports and enhances the UAE’s regional and global economic status and positions the country as a financial and business hub as well as a gateway to Southeast Asia and Africa. This falls in line with the UAE’s vision 2021.

Commenting on this announcement, HE Younis Haji Al Khouri, Undersecretary of MoF said: “This achievement was only possible through the UAE Cabinet’s decision No.12 issued in 2010 and amended in 2012, whereby the Ministry is authorised to collect and exchange information and data on natural persons and legal entities licensed to operate in the UAE, including free zones and through the signing of an MoU with the UAE Free Zones and Central Bank.”

HE also empasised that the UAE has met all requirements of the first stage as per the positive results from the evaluation made by the peer group. Furthermore, HE explained that the G-20 leaders encouraged all states to commit to the principles of transparency and exchange of information for tax purposes in 2009, including banking information.

Furthermore, HE Khalid Ali Al Bustani said: “The Ministry held several coordination meetings since 2012, in the presence of all relevant ministries and UAE free zones, to discuss the potential of peer group evaluations as well the ownership of information by the Ministry and the companies, institutions and free zones’ commitment to keep records of their business operations and accountings to a period of no less than five years.

HE added: “Discussion were also made on the ease of obtaining banking information upon the request of a state who has signed a bilateral agreement with the UAE. The total number of bilateral agreements amounted to 75 and includes all strategic and trading partners from the European Union, Asia, Arab countries, Latin American countries, Post- Soviet states and Canada.”

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