The United Arab Emirates has signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, joining 108 other jurisdictions, reports Tax News.
The Convention provides for all forms of administrative assistance in tax matters: exchange of information on request, spontaneous exchange, automatic exchange, tax examinations abroad, simultaneous tax examinations, and assistance in tax collection. It guarantees extensive safeguards for the protection of taxpayers' rights.
According to the OECD, the Convention is seen as being the ideal instrument for swift implementation of the new Standard for Automatic Exchange of Financial Account Information in Tax Matters developed by the OECD and G20 countries, as well as for the automatic exchange of country-by-country reports under the OECD/G20 Base Erosion and Profit Shifting (BEPS) project.
Signing the Convention will enable the United Arab Emirates to fulfil its commitment to begin exchanging information by 2018.