MoF and OECD forum takes up international taxation rules

The Ministry of Finance (MoF), in collaboration with the Organisation for Economic Cooperation and Development (OECD), hosted a forum on international taxation in Dubai, from Nov.12 to 14, 2024.

The event brought together government officials, economic experts, and representatives from the business and consulting sectors across 12 countries to engage in important discussions on international taxation topics.

The forum was organised as part of a Memorandum of Understanding between the MoF and the OECD, aimed at developing tax treaty networks in the MENA region and adopting international tax provisions.

This initiative seeks to address economic integration needs and promote a mutual understanding of international tax rules and regulations, including the complexities of transfer pricing provisions, which often have multi-jurisdictional implications for both businesses and tax authorities.

Younis Haji AlKhoori, Undersecretary of the Ministry of Finance, attended the event, which concludes tomorrow, alongside representatives from the Federal Tax Authority, Ministry of Foreign Affairs, and the Departments of Finance of Dubai, Ajman, and Fujairah.

The forum served as an ideal platform for exchanging insights and enhancing both regional and international tax cooperation.

“This forum, organised in collaboration with the OECD, represents a crucial opportunity to share expertise, strengthen regional and international cooperation, and contribute to the development of transparent and flexible tax systems that are well-equipped to meet global economic and technological challenges,” said Younis Haji AlKhoori during his opening address.

He added that the forum not only addresses critical global tax issues and facilitates the exchange of experiences but also underscores the UAE’s commitment to aligning its tax practices with international standards.

“This commitment enhances the UAE’s status as a leading global business hub and supports sustainable economic growth in an era of rapid digital transformation,” he noted.

Sessions

The forum included a series of in-depth discussions on key topics, such as mechanisms for implementing tax treaties, the subject to tax rule under OECD Pillar Two, and transfer pricing provisions. Sessions covered various elements of transfer pricing, including documentation requirements, risk assessment, and the practical implications of new developments, such as Amount A and Amount B of OECD Pillar One.

The forum also provided a platform for regional dialogue on tax convention policies and their practical applications, as well as other international tax issues faced by policymakers. Participants explored updates on BEPS 2.0 solutions, including technical developments led by the OECD and the G20’s Inclusive Framework, aimed at addressing tax challenges associated with the digital economy.

The Ministry of Finance shared insights into its practical experience with tax treaty implementation and highlighted recent advancements in this area.

The sessions were moderated by esteemed international experts from the OECD and HM Revenue and Customs (HMRC). Yves Van Brussel, Senior Advisor at the OECD Centre for Tax Policy and Administration, led several sessions covering the foundational principles of tax treaties and the subject to tax rule.

Kenjiroh Tomita, Senior Advisor in the Transfer Pricing Unit of the OECD, guided discussions on the evolution of transfer pricing practices and the significance of thorough documentation for global economies. Debra Evans, exchange of information specialist and Competent Authority at HMRC, presented a session on transfer pricing risk assessment and documentation strategies, with discussions continuing tomorrow on several key topics introduced during the forum.

FTA workshop in RAK: The Federal Tax Authority (FTA) hosted an awareness workshop on Corporate Tax for Free Zone Persons in Ras Al Khaimah, which marked a key milestone in the second phase of the FTA’s nationwide Corporate Tax Awareness Campaign. The campaign is aimed at providing valuable insights into the UAE’s Corporate Tax regime and tax obligations of Free Zone Persons subject to Corporate Tax.

In a press statement, the FTA highlighted its commitment to organising these workshops regularly which serve as a key platform for equipping Free Zone Persons with the knowledge and resources, they need to comply with tax laws and legislations while promoting the effective implementation of the corporate tax regime in the UAE.

The FTA emphasised the critical role of free zones in supporting the sustainable economic growth trajectory and innovation in the UAE, and reaffirmed its commitment to supporting Free Zone Persons in contributing to the diversification of government revenue sources as well as promoting sustainable economic growth.

WAM