UAE Cabinet approved the Multilateral Competent Authority Agreement (MCAA) – CRS local legislation expected soon..
November 10, 2016: Following UAE’s commitment to introduce OECD’s Common Reporting Standards (“CRS”) by 01 January 2017 (i.e. first exchange of information by 2018) to implement automatic exchange of information of financial accounts, the UAE Cabinet has approved the agreement on mutual administrative assistance in tax matters and the multilateral competent authority agreement (MCAA). Further, the Ministry continues its efforts to sign the agreement with OECD and the Global Forum on Transparency and Exchange of Information.
As predicted, the Ministry recently held a meeting with relevant regulatory authorities in the UAE such as the Ministry of Economy, Ministry of Justice, Ministry of Foreign Affairs and International Cooperation, Insurance Authority, Securities and Commodities Authority, UAE Central Bank, Dubai International Financial Centre (DIFC), and Abu Dhabi Global Market (ADGM), to implement effective procedures and processes for the exchange of tax information as per international standards.
Given these developments, we can soon expect the MCAA to be signed followed by local legislation implementing CRS in the UAE, being issued by the Ministry.
On the other hand, governance arrangements for a Common Transmission System for exchanging data have been agreed by the Global Forum on Transparency and Exchange of Information. Information on this system is not yet available.
If you have any questions, please do not hesitate to contact Nilesh Ashar.