MoF, ADGM sign agreement on automatic exchange of information for tax purposes

Abu Dhabi / WAM

Following its commitment to exchange tax information according to international requirements and sign agreements on the avoidance of double taxation, the Ministry of Finance (MoF) recently signed a Memorandum of Understanding with Abu Dhabi Global Market (ADGM) on the automatic exchange of information (AEoI) for tax purposes on ADGM premises.
The MoU was signed by Younis Haji Al Khoori, Under-Secretary at the MoF, and by Ahmed Ali Al Sayegh, Chairman of Abu Dhabi Global Market, in the presence of Khalid Ali Al Bustani, Assistant Under-Secretary of International Financial Relations at the MoF.
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 cooperation in order to implement any requirement under any International Tax Agreement, and update and maintain guidelines specific to the regulations and laws that serve the purpose of the International Tax Agreement.
The MoU also states the need for the 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. The agreement also specifies the quality of information and accurate exchange of information, communication with competent authority and financial institutions as well as the confidentiality and security of AEoI and background checks and contracts.
Commenting on the MoU, Younis Haji Al Khoori said, “The Ministry of Finance 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.”
Ahmed Ali Al Sayegh said, “We appreciate the Ministry of Finance’s efforts to strengthen economic cooperation and security by signing international agreements with local entities. This benefits the country and other parties and helps in achieving the economic vision.