UAE and OECD discuss ways to strengthen strategic relations

Younis Haji Al Khoori, Undersecretary of Ministry of Finance (MoF), on Sunday met Pascal Saint-Amans, Director of the Centre for Tax Policy and Administration at the Organisation for Economic Cooperation and Development (OECD) and his accompanying delegation.

Both parties discussed common-interest issues, strategic relations, and means of strengthening cooperation between the UAE and the OECD.

Khalid Al Bustani, Director General of the Federal Tax Authority (FTA); Saeed Rashid Al Yateem, Assistant Under Secretary of the Resource and Budget Sector at MoF; Ms. Azza Mohammed Al Suwaidi, Director of Revenue Development at MoF; and Abdullah Ahmed Al Obaidly, Director of Relations and International Financial Organisations, as well as several officials from MoF and the FTA attended the meeting.

During the meeting, Younis Haji Al Khoori stressed on the importance of the joint cooperation with the OECD, and reaffirmed the UAE’s commitment to the OECD standards, especially in exchanging information for tax purposes. He said: “The UAE is keen to coordinate with the OECD in all relevant areas, in line with its commitment to implement international tax standards and practices with the highest levels of transparency with regard to tax related matters.”

Khalid Al Bustani said: “The UAE adopts well-thought-out balanced financial and tax policies, legislations, and systems that meet the objectives of the national development plans, while ensuring commitment to the highest levels of transparency and preventing harmful financial and tax practices. This is to meet international requirements for the management and application of tax systems. The UAE will continue to support international efforts to combat base erosion and profit shifting, to contribute to the continuous improvement of the global economic environment.”

The meeting deliberated the UAE’s progress in implementing international tax standards, the Base Erosion and Profit Shifting (BEPS), as well as the latest updates on the requirements of the Country by Country Reporting (CBCR), the Economic Substance Regulations (ESR), and the Common Reporting Standard (CRS). That, in addition to the UAE’s readiness to implement the global consensus on Pillar 1 and 2 to Address the Tax Challenges arising From the Digitalisation of the Economy.

Furthermore, both parties discussed the inclusive framework on Carbon pricing and the extension of the UAE-OECD strategic partnership by renewing the UAE-OECD MoU for 2022-2024. Additionally, both parties reviewed the OECD’s ongoing work in the economic field and tax reform in the UAE.

MoF signed an MoU with the OECD in 2007, which is periodically renewed to build a strong tax partnership for the Middle East and North Africa region by sharing experience and seeking solutions to common problems in the exchange of information for tax purposes.

Younis Haji Al Khoori recently met International Monetary Fund (IMF) Article IV consultations’ Mission. The meeting took place virtually as part of the IMF’s annual consultations to discuss the UAE’s economic and financial performance.

The relevant departments of the ministry attended the meeting, along with Dr Mahmoud Mohieldin, Executive Director of the Arab Group at the IMF and Ali Al-Eyd, Article IV Consultations’ Mission Chief, and a number of the IMF employees.

Al Khoori stressed on the importance of the consultations that the Ministry of Finance is conducting with the IMF, to review the opinions of experts regarding the country’s economy. “The Ministry of Finance is keen to continue working with all strategic partners, foremost of which is the IMF, to advance the financial and monetary policies in the country, in line with the best international practices and standards,” he said.

The meeting sought to review the main aims and focus of the Article IV Consultations’ Mission. Both parties deliberated the UAE’s fiscal responses to COVID-19, progress on UAE-wide fiscal framework, government financial resources, the UAE’s Federal Budget, and fiscal outturns and performance in 2021-2022. They also discussed the UAE’s macroeconomic policies, fiscal policy coordination, public debt as of end of 2021 and issuance plans, as well as other topics of common interest.

Article IV Consultations’ Mission will hold a series of virtual meetings with the rest of the concerned authorities in the country, from February 28 to March 10, 2022.

Separately, The Ministry of Finance (MoF) has received two awards in the 6th edition of the Mohammed Bin Rashid Government Excellence Award, at Expo 2020 Dubai.

The event was held during a ceremony organised by the UAE Government under the patronage and presence of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai.