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MoF and UAQ FTZ sign MoU on international standards of transparency and exchange of information for tax purposes

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Dubai - The Ministry of Finance (MoF) recently signeda memorandum of understanding (MoU) with Umm Al Quwain Free Trade Zone Authority (UAQ FTZ). This agreement has been signed to ensure international standards of transparency in the exchange of information for tax purposes, as perOrganisation 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 at MoF and Sultan Saeed Sultan Al Ali, Executive Director Port, Customs and Free Zone Establishment Government of Umm Al Quwain; during a ceremony which was also attended byHE Younis Haji Al Khoori, Undersecretary of MoF and Majid Ali Omran, Director of International Financial Relations Department at MoF.

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 UAQ FTZ; to implement the UAE's double taxation avoidanceand exchange of information agreements.

Commenting on the MoU, HE Khalid Ali Al Bustani stressed the Ministry's commitment to cooperate with economic zones within the UAE in order to sign similar MoUs. These agreementssupport two key goals, which include meeting principlesof transparency and the exchange of information for tax purposes;as well as strengthening cooperation between authorities responsible for the exchange of information for tax purposes on a local, regional and global level.

HE continued: "The signing of this agreement isin line with the UAE Cabinet resolution No. (17) of 2012,whereby the Ministry is authorised to collect and exchange tax information as per UAE international tax agreements. The Ministry will continue to strengthen relationships with local government entities in the UAE, in order to support the national economy, attract more investments and guarantee prosperity."

Majid Ali Omran, Director of International Financial Relations Department at MoFadded that the UAE has completed its Phase 1 Global Forum on Transparency and Exchange of Information for Tax Purposesreview and is now undergoing the Phase 2 review process.In addition, he highlighted that he Ministry has previously signed a number of similar MoUs with several local government entities within the UAE.

Sultan Saeed Sultan Al Ali, Executive Director Port, Customs and Free Zone Establishment Government of Umm Al Quwain said: "The MoU will implement transparency and exchange of information between both MoF and UAQ FTZ. The MoUis meant to ensure that global best practices and specific procedures are applied to tax regulations that affects companies and individuals registered at UAQ FTZ. The MOU also aims to support the competent authorities responsible for the exchange of information for tax purposes. By signing the MoU, companies and individuals registered at UAQ FTZ can avail the benefits of various Double Taxation avoidance treaties entered upon by the UAE".

Johnson George, General Manager of UAQ FTZ Authority said: "Setting up entities at UAQ FTZ allows 100 per cent foreign ownership, full repatriation of capital and profits, and full tax exemption to investors. UAQ FTZ has business center facilities, offices, warehouses and land for lease. UAQ FTZ provides investors with a selection of real estate facilities to suit the business requirements, including premium offices, warehouses, and land for development. Our aim is to become a business friendly free trade zone in the UAE. Our clients will be benefited from the personalized attention, quick and easy facilitation of their requirements. Lower operational cost and the costs of living in Umm Al Quwain benefits the clients to maximize their profits. We welcome investors to join us for a great success".