The Ministry of Finance (MoF) of UAE has signed a memorandum of understanding (MoU) with Abu Dhabi Global Market (ADGM) for automatic exchange of information (AEoI) on tax purposes.
The MoU stipulates commitment of the two parties to implement international standards and requirements of the automatic exchange of information.
It also requires the two parties to develop cooperation to implement international tax agreements, as well as update and maintain guidelines in line with international tax treaties.
Further, the agreement requires ADGM-licensed financial providers to offer their data on an annual basis through the agreed upon automated system, as well as enables implementation of Foreign Account Tax Compliance Act (FATCA) reports and other automatic exchange of information agreements.
ADGM chairman Ahmed Al Sayegh said: "This MoU with the Ministry of Finance underscores our strong commitment to work together in exchanging pertinent tax-related information that will safeguard and uphold international practice and standards in Abu Dhabi and the UAE.
“By drawing upon our respective strengths and expertise, we will ensure that appropriate measures are in place to prevent tax evasion, to improve the efficiency of tax collection and ultimately to raise the bar on compliance standards.
Moreover, the MoU specifies quality and pertinence of the data exchange, communication with competent authority and financial institutions, confidentiality and security of AEoI, and security checks on people and contracts.
"My sincere gratitude to the Ministry of Finance for their unwavering support. We will continue to collaborate closely with them and to cultivate meaningful collaborations and partnerships with all relevant authorities and stakeholders both locally and globally to further cement ADGM's position as a leading international financial centre," Al Sayegh added.