MoF and Abu Dhabi Global Market Sign MoU

Following its commitment to exchange tax information according to international requirements and sign agreements on the avoidance of double taxation, the Ministry of Finance recently signed a Memorandum of Understanding with Abu Dhabi Global Market, ADGM, on the automatic exchange of information (AEoI) for tax purposes in ADGM premises.

The MoU was signed by Younis Haji Al Khoori, Under-Secretary at the MoF, and by Ahmed Ali Al Sayegh, Chairman of Abu Dhabi Global Market, in the presence of Khalid Ali Al Bustani, Assistant Under-Secretary of International Financial Relations at the MoF.

The agreement stipulates both parties’ commitment to implement international standards and requirements on the automatic exchange of information for tax purposes, establish a formal basis for cooperation in order to implement any requirement under any International Tax Agreement, and update and maintain guidelines specific to the regulations and laws that serve the purpose of the International Tax Agreement.

The MoU also states the need for the ADGM to register all financial institutions and provide data on an annual basis through an agreed upon automated system, develop, implement, update and maintain the FATCA reporting system for collection of information for tax purposes. The agreement also specifies the quality of information and accurate exchange of information, communication with competent authority and financial institutions as well as the confidentiality and security of AEoI and background checks and contracts.

Commenting on the MoU, Younis Haji Al Khoori said, "The Ministry of Finance continuously seeks to sign similar agreements to ensure implementation of international standards of transparency, by ADGM providing information and data for tax purposes which the Ministry exchanges with different countries to maintain the global financial and trading position of the country. Signing the agreement contributes in maintaining confidentiality of tax information circulated among stakeholders, as well as in setting plans to face potential data leakage risks."

Ahmed Ali Al Sayegh said, "We appreciate the Ministry of Finance’s efforts to strengthen economic cooperation and security by signing international agreements with local entities. This benefits the country and other parties and helps in achieving the economic vision. The MoU helps in preventing tax evasion and enhancing tax collection efficiency, the automatic exchange of information is considered as a new standard for international cooperation to achieve transparency and tax justice."

Al Sayegh added, "I would like express my sincere thanks to the Ministry’s support to ADGM’s efforts in strengthening its position as a leading international financial entity and we look forward to cooperate with local and international stakeholders to ensure a suitable environment for business."

MoF continuously seeks to highlight the importance of exchanging information for tax purposes and its impact on the country’s economy and tax payers. The Ministry previously organised local, regional and international workshops on exchange of information for tax purposes, and included topics on identifying the common international standards in tax reports related field, implementation mechanisms, legal frameworks adopted in AEOI fields as well as ways to identify specialised development foundations that is in line with any modern updates.