The United Arab Emirates on April 21 signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, becoming the 109th jurisdiction to participate in the convention.
The treaty, developed in 1988 by the OECD and the Council of Europe, would enable the United Arab Emirates to fulfill its commitment to begin automatic exchange of financial account information with other countries’ tax administrations in 2018, furthering the aim of preventing tax evasion.
The convention also includes provisions that would make it easier for the UAE to implement automatic exchange of country-by-country reports on the tax affairs of multinational corporations with other countries’ tax administrations under action 13 of the OECD/G20 base erosion and profit shifting (BEPS) project. Further, it would assist the UAE implement exchange of private tax rulings involving multinationals under action 5 of the BEPS project.
The convention is not yet in force in the United Arab Emirates.