UAE signs the MAC and MCAA, OECD releases two CRS updates, and FATCA reporting deadline set by the UAE Central Bank and DFSA
Following the UAE’s commitment to introduce OECD’s Common Reporting Standards (CRS) by 1 January 2017 to implement automatic exchange of information of financial accounts, His Excellency Muadid Hareb Mughair Al-Khaili, the UAE’s Ambassador to France, has signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters in the presence of the OECD Deputy Secretary-General, Rintaro Tamaki.
The convention provides administrative assistance in tax matters for all forms of: 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. The convention will enable the UAE to fulfil their commitment to begin the first of such exchanges by 2018.
The first was an updated edition of the Standard for Automatic Exchange of Financial Account Information in Tax Matters. According to the OECD, the updated version:
…expands the last part on the CRS XML Schema User Guide. It also sets out additional technical guidance on the handling of corrections and cancellations within the CRS XML Schema, as well as a revised and expanded set of correction examples. The other parts remain unchanged relative to the first edition that was issued in 2014.
The second update was a set of 12 “frequently asked questions” providing guidance about the CRS. The attached pdf has a review of each of the new FAQs.
The UAE Central Bank has made some changes to the format for FATCA reporting as per the US Internal Revenue Service requirements received. These changes have been posted to the FATCA Test and Live portals. The UAE Central Bank have added that the reporting deadlines will be as follows:
Further, the Dubai Financial Services Authority (DFSA), the regulatory body governing the DIFC, has announced that the reporting deadline for the 2017 reporting year, for all foreign financial institutions (FFIs) registered with the DIFC in the UAE will be 15 June 2017, for 2016 financial information. As before, FFIs registered with the DIFC must report through the DIFC portal which can be accessed here. The DFSA have added that:
…This is a month longer than the 2016 deadline of 15 May. Considering this extended period, all Firms should be aware that no extensions will be provided this year and timely submission of the data should be ensured.
We can expect that the Insurance Authority, the Securities and Commodities Authority, and the Abu Dhabi Global Market will also have a June reporting deadline (deadlines are yet to be announced).
Read the full alert here.
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