|By Arabian Post Staff| The Ministry of Finance (MoF) announced the UAE’s membership to the Global Forum on Transparency and Exchange of Information, following the UAE Cabinet’s decision in 2010 on MoF’s implementation of the G20 resolutions for the exchange of information for tax purposes.
The Ministry will be responsible for coordinating with government bodies to collect financial information of international companies operating in the country.
The UAE Cabinet had issued a decision in 2012 on the Ministry of Finance to gather information on natural or legal person, including free zones; following G20 decision on the importance of exchanging information for tax purposes. A Memorandum of Understanding (MoU) was signed with the Secretariat of the Global Forum of Transparency and Exchange of Information for Tax purposes.
Obaid Humaid Al Tayer, Minister of State for Financial Affairs, stressed MoF’s efforts and commitment to implement international standards and requirements of the exchange of information, which led the Ministry to obtain a seat at the International Steering Committee for the exchange of information as the first Arab country to be elected to this position. This achievement strengthens the strategic partnership between the UAE, the forum, OECD and the Financial Stability Board.
The UAE underwent a phase 1 peer review in 2011, and submitted a report of the results to the committee which gave consent for the UAE to move forward to transfer to the second phase of the evaluation, following the country’s commitment to meet the requirements. This has led the Global Forum on Transparency and Exchange of Information to issue a decision on 18 March 2014 to approve the UAE’s transmission to the final stage.
UAE Cabinet has approved the agreement on mutual administrative assistance in tax matters (MAC) and the multilateral competent authority agreement (MCAA), while the Ministry continues its efforts to sign agreement with OECD and the Global Forum on Transparency and Exchange of Information. The Ministry, in cooperation with the committee, supervises the implementation of the exchange of information for tax purposes, as per the schedule prepared by the Global Forum of transparency and exchange of information for tax purposes
The Ministry recently held a meeting with relevant regulatory authorities in the UAE such as the Ministry of Economy, Ministry of Justice, Ministry of Foreign Affairs and International Cooperation, Insurance Authority, Securities and Commodities Authority, UAE Central Bank, Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM), to implement effective procedures and processes for the exchange of tax information as per international standards.
UAE had previously signed an agreement with FATCA and shared the financial data for 2014 and 2015, in addition to signing more than 103 agreements on the avoidance of double taxation on income, seven agreements on the exchange of information for tax purposes, to provide a legal framework for tax authorities to practice cross-border cooperation without violating the sovereignty of other states or the rights of taxpayers.