Friday 31 March 2023 - 5:22:03 pm

UAE will continue to support all global efforts to combat base erosion, profit shifting: Ministry of Finance

ABU DHABI, 26th July, 2021 (WAM) -- The UAE has welcomed the statement issued by the Organisation for Economic Cooperation and Development and the G20 (G20/OECD) on the Inclusive Framework on Base Erosion and Profit Shifting (Inclusive Framework) with regards to laying the building blocks for a new global tax framework on 1st July 2021.

The UAE is one of the 132 member countries (out of 139) that have joined the consensus. These building blocks have also been endorsed by the G20 Finance Ministers in its 10th July 2021 meeting in Venice, Italy.

In a statement on Monday, Saeed Rashid Al Yateem, Assistant Under-Secretary of the Resource and Budget Sector at the Ministry of Finance, said the UAE’s policies have been carefully designed to support the country's fiscal needs and meet international requirements. "This approach has created a business-friendly environment that affirms the UAE’s global position as a stable and attractive place to facilitate global investment," he added.

Since joining the Inclusive Framework in May 2018, the UAE has actively participated in various initiatives and discussions to improve the transparency of the international tax environment and the coherence of the global tax system. The UAE’s tax system has also been subject to recent external and independent reviews by the OECD and the EU and is not considered to be ‘harmful’.

The successful implementation of economic substance and transparency rules is a testament to the UAE’s ability to adapt its practices to meet global standards, the statement went on to say.

Al Yateem noted that the UAE is supportive of a global consensus approach to combat aggressive tax avoidance and profit shifting, and emphasises that the final design of the rules should contain sufficient allowance for businesses with real economic activities. "The UAE is fully committed to working collaboratively with the OECD and IF members to further advance the technical discussions to ensure a fair and sustainable outcome can be achieved," he concluded.