Abu Dhabi – Mubasher: The UAE’s Ministry of Finance (MoF) signed a memorandum of understanding (MoU) with Abu Dhabi Global Market (ADGM) on the automatic exchange of information (AEoI) for tax purposes.
The ministry stated that the MoU will stipulate the parties’ rights and obligations to apply the international standards and requirements of the AEol. It will also establish a formal basis for cooperation to implement any requirement under the International Tax Agreement.
“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,” commented Younis Haji Al Khoori, MoF undersecretary.
ADGM has to register all the financial institutions and provide their data on an annual basis through an approved automated system, according to the statement.
The agreement allows the development, implementation, update and maintenance of FATCA reporting system. It also guarantees the quality and accuracy of the exchanged information, besides the communication with the competent authorities and financial institutions.
The MoU will ensure the confidentiality and security of the AEol, in addition to checking the background of the exchangers and contracts.
