(MENAFN - Emirates News Agency (WAM)) In line with its continuous efforts to play an active role in supporting the global economy and in its aim to enhance transparency relating to the exchange of tax data, the Ministry of Finance (MoF) signed a Memorandum of Understanding (MOU) with the Fujairah Free Zone Authority.
The agreement's articles are meant to ensure that global best practices are being applied with regards to maintaining transparency levels particularly during exchange of tax data.
The signing took place in MoF's headquarters in Abu Dhabi. The agreement was signed by Younis Haji Al Khouri, Undersecretary of MoF and by Sharif Habib al-Awadhi, Director General of the Fujairah Free Zone Authority.
The agreement follows MoF's strategy of attaining tax fairness for all tax payers, whether individuals, or companies/organisations. This will be achieved through ensuring that transparency principles are always applied, and that tax data is continuously being exchanged by relevant parties. These principles ultimately aim to increase cooperative efforts between the different related authorities to enhance efficiency and maintain global standards.
Al Khouri empasised the important role of these kind of agreements in promoting the rapid exchange of information between different areas and counties to ensure the proper application of different tax agreements in line with the activities of taxpayers. Such agreements set a legal framework for tax authorities when exchanging information, which do not contradict with the sovereignty of each individual country or with the rights of taxpayers.
MoF had already set an action plan to host a number of meetings with different local authorities to promote the application of the recommendations that appeared in the UAE National Report, particularly the section pertaining to the exchange of information. This follows the UAE Cabinet's decision No. (17), issued in 2012, which provides MoF with the full authority to collect and exchange information pertaining to individuals and entities that are licensed to work and operate in the UAE, including its free zones. This is in line with the bilateral tax agreements signed with other countries.
The UAE has signed numerous tax agreements to date, which reflects the county's strong economic standing and the attractive offerings it provides to investors.