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Dubai: As part of its initiatives to support the federal government's efforts in strengthening the UAE’s global status and reiterating its role in international and regional organisations, the Ministry of Finance (MoF) and the Organisation for Economic Co-operation and Development (OECD) have organised a workshop titled ‘Implementing Multilateral Mechanisms and Taxes amid a Digital World.’ The workshop opened yesterday morning in Dubai and will continue until November 21, 2018.
More than 55 participants from 15 countries in the Middle East, Africa and Asia, along with representatives from the Ministry of Foreign Affairs and International Cooperation, the Ministry of Economy, the UAE Central Bank, Emirates Airline, Etihad Airways, Mubadala and other relevant federal entities are attending the workshop.
HE Younis Haji Al Khoori, undersecretary of MoF said: “This event is part of the Regional Cooperation Initiative to organise a series of seminars on international taxation as part of the MoU signed between MoF and OECD for 2016-2018. The MoU provides technical assistance on tax agreements, international tax issues for the Middle East, Africa and Asia, and ensures exchange of knowledge on the latest developments in tax policies and best practices.
HE praised the economic and trade relations between the UAE and regional countries, which MoF seeks to enhance in all areas of mutual interest. HE added: “As part of the ministry’s strategy we have successfully negotiated 118 agreements to avoid double taxation on income with most of the nation’s trading partners. The ministry achieved this economic balance by exempting or reducing taxes on sovereign state investments, private sector institutions and national airlines engaged in international transport.”
The workshop focused on major international developments in the field of taxation, primarily the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI), its main provisions and principles, implications, and developments associated with transboundary digital transactions. Additionally, the mechanisms for developing medium- and long-term solutions, as well as the opportunities and challenges associated with digital assets were also discussed.
The OECD was tasked by the G20 to develop effective processes and solutions for transferring benefits. Recognizing the organisation’s role of proper application of international taxation principles and tax treaties through regional dialogue, the workshop program was developed to address a range of important tax issues, including the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS, defining the multilateral agreements articles, and developing the G20’s work on this agreement as well as its impact on existing agreements. Furthermore, the OECD’s current work on the implementation of the Base Erosion and Profit Shifting project and peer evaluation, as well as the developments relating to cross-border taxes and opportunities with digital currencies were also discussed.
HE added: “In June 2018, the UAE signed a Multilateral Agreement, which covers more than 80 jurisdictions, and will be effective from June 1, 2019. The OECD recognises the UAE's leading role in the MENA region when it comes to building a sophisticated and efficient tax network.
“The strategic partnership between the ministry and the OECD is in line with the government's strategy to highlight the importance of the nation’s role on the global arena, raise its ranking in international indices, while benefitting from the organisation's training policy and programs in order to enhance the financial management capabilities within the nation and the countries of the region.”
The UAE has become a hub for regional dialogue, since its first memorandum of understanding with the OECD in 2007, which has now been extended for the fourth time in order to bridge the knowledge and technology gap in tax treaties. To achieve this the OECD has been organising specialised workshops for the past three years for individuals responsible for negotiations and implementation of tax agreements in target countries. An average of 50 trainees attend these workshops annually, as they work to develop the region’s understanding of tax conventions, as well as their objectives, interpretation and implementation. This has enabled the OECD to gain a deeper understanding of tax systems in the MENA region.
It worth noting that in accordance with the Council of Ministers Resolution No. 227/19 of 2006, MoF is the nation’s representative in the OECD in the field of fiscal and public finance policies. The UAE continues to work with MENA countries to share expertise by developing effective tax networks in the region in cooperation with the OECD and creating regional dialogue on issues around tax treaties. The UAE also continues to create channels of communication to help them support their tax networks and raise implementation efficiency.
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