The UAE, represented by the Ministry of Finance, MoF, signed an agreement today on the avoidance of double taxation on income with Jersey, at its premises in Dubai. The agreement, known as a Double Taxation Agreement, or DTA, falls in line with the Ministry’s belief in the importance of strengthening its network of international relations with regards to the avoidance of double taxation on income.
The agreement was signed by Obaid Humaid Al Tayer, Minister of State for Financial Affairs, and Jersey’s Chief Minister, Senator Ian Gorst, in the presence of Younis Haji Al Khoori, Under-Secretary at the MoF, and Khalid Ali Al Bustani, Assistant Under-Secretary of International Financial Relations, along with a number of officials at the Ministry.
Al Tayer stressed the importance of signing agreements like these to support foreign trade and develop international economic and financial relations. He added, "The Ministry works hard on coordinating and cooperating with all financial legislative authorities across the globe to establish a legal framework through agreements on the avoidance of double taxation on income, in order to establish cooperation with tax legislations, curb the evasion of income tax, as well as providing full protection to companies and individuals from direct or indirect double taxation."
The Minister of State also highlighted the importance of the agreement in enhancing economic and financial cooperation between the two countries. The Ministry is committed to adopting the highest economic standards of transparency and the exchange of information for tax purposes, as per G20 decisions, as well as the terms and conditions of agreements on the avoidance of double taxation with other countries, which now total 96 agreements with key economic and trading partners.
Senator Ian Gorst said, "The signing of the DTA today will further strengthen the extremely good relationship we have with the Emirati Government. I am delighted to have been able to sign the agreement in the Emirates and to have had the opportunity to personally convey to the Minister the importance we attach to our commitment to a future relationship which we believe will be to our mutual advantage."
The Double Taxation Agreement is the latest in a series of agreements between Jersey and the UAE on financial issues. The Jersey Finance regional office was established in the UAE in March 2011, and earlier this year, the Jersey Financial Services Commission, JFSC, the island's financial regulator, signed a Memorandum of Understanding with the Financial Services Regulatory Authority of the Abu Dhabi Global Market, laying out a framework for future collaboration. Other MoUs between the Commission and UAE bodies include agreements with the Dubai Financial Services Authority in 2006, the UAE Central Bank in 2011, and the Emirates Securities and Commodities Authority in 2014.
Besides the growing relationship between the UAE and Jersey in financial services, the island has recently begun exporting foodstuffs to the UAE, including its well-known 'Jersey Royal' potatoes and oysters.