MoF and OECD explores ways to implement best tax system in UAE

By Arya M Nair, Official Reporter
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The UAE Ministry of Finance (MoF), and a delegation from the Centre for Tax Policy and Administration (CTPA) at the Organization for Economic Cooperation and Development (OECD) have explored areas of mutual interest, strategic relations, and ways to strengthen economic cooperation.

Mr. Younis Haji Al Khoori, Undersecretary of Ministry of Finance (MoF), and Mr. Pascal Saint-Amans, Director of CTPA discussed the inclusive framework on Carbon pricing and the extension of the UAE-OECD strategic partnership by renewing the UAE-OECD MoU for 2022-2024. Additionally, both parties addressed the OECD’s ongoing work in the economic field and tax reform in the UAE.

During the meeting, Mr. Al Khoori stressed the importance of the joint cooperation with the OECD, and reaffirmed the UAE’s commitment to the OECD standards, especially in exchanging information for tax purposes.

“The UAE is keen to coordinate with the OECD in all relevant areas, in line with its commitment to implement international tax standards and practices with the highest levels of transparency with regard to tax-related matters,” added Mr. Al Khoori.

Khalid Ali Al Bustani
Khalid Ali Al Bustani

“The UAE adopts well-thought-out balanced financial and tax policies, legislations, and systems that meet the objectives of the national development plans while ensuring commitment to the highest levels of transparency and preventing harmful financial and tax practices. This is to meet international requirements for the management and application of tax systems. The UAE will continue to support international efforts to combat base erosion and profit shifting, to contribute to the continuous improvement of the global economic environment.”

The meeting deliberated the UAE’s progress in implementing international tax standards, the Base Erosion and Profit Shifting (BEPS), as well as the latest updates on the requirements of the Country by Country Reporting (CBCR), the Economic Substance Regulations (ESR), and the Common Reporting Standard (CRS), in addition to the UAE’s readiness to implement the global consensus on Pillar 1 and 2 to Address the Tax Challenges arising From the Digitalization of the Economy.

MoF signed an MoU with the OECD in 2007, which is periodically renewed to build a strong tax partnership for the Middle East and North Africa (MENA) region by sharing experience and seeking solutions to common problems in the exchange of information for tax purposes.

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