Governments around the globe, including the United Arab Emirates, are building commitments towards International initiatives developed to fight tax evasion and promote tax transparency.
This does not mean that legitimate companies and individuals will lose the advantages being offered by the UAE in terms of quality of life and zero tax structures presently enjoyed, it means that there are matters and changes that need to be considered to ensure that whilst being compliant you remain at zero tax or as close to it as possible.
The Organization for Economic Co-Operation and Development (OECD) has developed the “Common Reporting Standard” initiative, which requires governments in participating jurisdictions to collect financial account information from their financial institutions. The account information collected are related to customers who are tax resident outside of the country in which they hold their accounts.
Then they automatically exchange this information on an annual basis with other jurisdictions if these are also participating in CRS. Participating jurisdictions will enact and implement the Common Reporting Standard under their local laws. Banks worldwide will be reaching out to customers to request information or documents to confirm their tax residency status.
Please refer to the OECD website http://www.oecd.org/tax/automatic-exchange/common-reporting-standard/ for more information about the Common Reporting Standard.
Should you be interested in an initial assessment of your particular circumstances and how the CRS will affect you and what options you have, please do not hesitate to contact us for a free no obligation initial assessment.