KPMG in the United Arab Emirates (UAE) reports that the country has signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters and entered a new tax treaty with Jordan.
The UAE has signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, which provides for administrative assistance in tax matters for all forms of:
The convention commits the UAE to begin the first such exchanges by 2018. The agreement also guarantees extensive safeguards for protecting taxpayers' rights.
To date, the UAE has signed 104 bilateral agreements to avoid double taxation, eight agreements on the exchange of information for tax purposes, and an intergovernmental agreement with the U.S. in relation to the U.S. Foreign Account Tax Compliance Act, which includes bilateral cooperation in the exchange of tax information.
The UAE’s compliance with international requirements for multilateral agreements on tax cooperation is expected to strengthen the UAE’s position as a global financial and trading center and enhance its tax competitiveness.
The UAE and Jordan concluded a new tax treaty, which is currently in force and applies to tax years starting on or after 1 January 2018.