The Ministry of Finance (MoF) recently signed a memorandum of understanding (MoU) with Ras Al Khaimah Investment Authority (RAKIA).
This MoU has been signed to ensure the implementation of international standards of transparency in the exchange of information for tax purposes, as per Organisation for Economic Cooperation and Development (OECD) regulations and principles.
The MoU was signed by HE Khalid Ali Al Bustani, Assistant Undersecretary of International Financial Relations Sector at MoF, and Yaser Abdullah Al Ahmed, Director of Government and Corporate relations at RAKIA.
The MoU stipulates both parties’ commitment to exchange available information on ownership, identity, accounting records and banking details for L.L.C and any corporate person licensed by RAKIA; based on the implementation of the UAE’s double taxation avoidance and exchange of information agreements.
Commenting on the MoU, HE Khalid Ali Al Bustani stressed the Ministry’s commitment to circulating this memorandum to various departments and investment and free zones authorities, in an effort to support the nation’s economy by increasing competitiveness in foreign investment, raising the UAE’s GDP and achieving economic prosperity.
HE continued: “The signing of this agreement and its implementation across all targeted entities at the state level is considered a real tool in promoting the UAE as a distinguished centre for attracting investment. It shows investors our commitment to international tax agreements and to raising the level of transparency and exchange of information for tax purposes, as essential elements in double taxation avoidance treaties for companies and individuals.”
Based on the MoU, RAKIA will coordinate with MoF on the exchange of information in consistence with the requirements set out in Article 26 of the OECD Model Tax Convention on Income and Capital and its commentary as updated in 2004, and the tax information exchange agreements (TIEAs) model.
MoF had signed the same MoU with Umm Al Quwain Free Trade Zone Authority (UAQ FTZ) in April 2015.