Article Credit: https://lnkd.in/fymg6PP
Published By Emirates News Agency
DUBAI, 11th March, 2019 (WAM) — The Ministry of Finance, MoF, held an official ceremony today to celebrate 30 years of signing the avoidance of double taxation and bilateral investment agreements. A press conference to announce and sign a three-year extension of the MoU between the UAE and the Organisation for Economic Cooperation and Development, OECD, also took place.
The MoU stipulates mutual cooperation between both parties in developing a better understanding of the practical application of international tax principles.
H.H. Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance; H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Civil Aviation Authority, Chairman and Chief Executive of Emirates Airline and Group, and Second Vice Chairman of Dubai Executive Council; Obaid bin Humaid Al Tayer, Minister of State for Financial Affairs, as well as Ambassadors, Consuls, senior UAE government officials, and strategic partners of the ministry attended the ceremony.
Younis Haji Al-Khoori, MoF Under-Secretary, on behalf of the UAE, and Grace Perez-Navarro, Deputy Director of the Centre for Tax Policy and Administration, on behalf of the OECD, signed a Memorandum of Understanding to extend the programme of joint educational seminars for three years (2019-2021). The programme aims to provide support and assistance to countries of the MENA region in the area of tax agreements and help them develop better understanding of the practical application of international tax principles.
Sheikh Hamdan bin Rashid emphasised the strategic importance of these agreements, adding that the UAE leadership’s forward-looking vision recognises the importance behind said agreements to reduce the tax burden on local investments abroad and protect them from non-commercial risks, thereby enhancing the competitiveness of the country and its attractiveness to investments from around the world.
“The agreements to prevent double taxation and protect and promote investments are an important element in the process of attracting foreign investment and improving the nation’s competitiveness, which in turn contribute to supporting the country’s development goals and diversifying sources of national income,” His Highness added.
Obaid Al Tayer affirmed the ministry’s commitment to expand the UAE’s international network of relations by signing agreements to prevent double taxation and agreements to protect and promote investment. “These agreements strengthen the country’s trade and economic relations, provide more investment opportunities for companies, boost foreign investments and promote trade, commodity exchange and cross-border movement of capital,” he said adding that the Ministry of Finance has taken important steps in this direction and has signed as many as 210 tax agreements to date.
“The nation also assumed an important position in disseminating knowledge related to double taxation issues in the region and the world. Furthermore, as a strategic partner of the OECD it has held regional workshops on tax treaty issues, and raised awareness among governments of the region on these issues,” he added.
The first negotiation on the avoidance of double taxation and protection and promotion of investment agreement, which aims to achieve economic balance and protect investments from all non-commercial risks, took place in 1989 with friendly countries.
Overall, between 1989 and 2018 the UAE has signed 210 agreements, including 123 agreements to avoid double taxation and 87 agreements to protect and promote investment. The country ranked second in the world in terms of avoidance of double taxation agreements and first among the Arab nations.