Following its commitment to exchange tax information according to international requirements and sign agreements on the avoidance of double taxation; the Ministry of Finance has recently signed a memorandum of understanding (MoU) with Abu Dhabi Global Market (ADGM) on the automatic exchange of information (AEoI) for tax purposes in ADGM’s premises.

HE Younis Haji Al Khoori, MoF and HE Ahmed Ali Al Sayegh, ADGM

HE Younis Haji Al Khoori, MoF and HE Ahmed Ali Al Sayegh, ADGM

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

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

HE Al Khoori, said, “The MoF 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.”

The MoU also states the need for 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.