The UAE Ministry of Finance has signed an agreement with Abu Dhabi Global Market (ADGM) on the automatic exchange of information for tax purposes in its premises.

This step follows the ministry’s commitment to exchange tax information according to international requirements and sign agreements on the avoidance of double taxation.

The MoU was signed by Younis Haji Al Khoori, undersecretary at the ministry and Ahmed Ali Al Sayegh, chairman of ADGM, in the presence of Khalid Ali Al Bustani, assistant undersecretary of international financial relations.

The agreement stipulates both parties’ commitment to implement international standards and requirements on the automatic exchange of information for tax purposes, establish a formal basis for co-operation in order to implement any requirement under any international tax agreement, update and maintain the guidelines specific to the regulations and laws that serve its purpose.

Commenting on the deal, Al Khoori said: "The ministry 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,” he said.

Al Sayegh lauded the ministry’s efforts to strengthen economic co-operation and security by signing international agreements with local entities.

"This helps in preventing tax evasion and enhancing tax collection efficiency; the automatic exchange of information is considered as a new standard for international cooperation to achieve transparency and tax justice,” he added.-TradeArabia News Service