DIFC Legislates For Automatic Tax Information Exchange
by Lorys Charalambous, Lowtax.net, Cyprus
01 June, 2017
The Dubai International Financial Centre, a free trade zone in the United Arab Emirates, has taken a further step towards meeting international standards concerning tax transparency with the passage of DIFC Law No. 1 of 2017.
The new law facilitates amendments to existing company and partnership laws, allowing the DIFC to fully comply with its obligations as part of the OECD Global Forum on Transparency and the Exchange of Information for Tax Purposes, a forum of 142 member jurisdictions who have committed to implementing internationally agreed standards relating to tax transparency and the exchange of information in tax matters.
Among other things, the law clarifies the underlying documentation to be retained by companies and partnerships in the DIFC, bringing DIFC record keeping requirements into line with internationally recognized standards.
The DIFC is a free trade zone located in Dubai, which offers a number of perks to firms, including zero percent income tax guaranteed for 50 years, 100 percent foreign ownership, and no exchange controls.
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