In order to communicate information for tax purposes, the Ministry of Finance (MoF) and the Dubai Free Zones Council (DFZC) signed a Memorandum of Understanding (MoU). This is consistent with the ministry's ongoing efforts to make sure that the UAE's various government agencies adhere to the agreements and tax responsibilities that the nation has signed.

The MoU was signed in accordance with the rules and guidelines established by the Global Forum on Transparency and Exchange of Information for Tax Purposes and aimed to improve ways of collaboration with various local and federal government organizations around the nation in the area of information sharing for tax purposes. The objective is to achieve justice and transparency for taxpayers, both corporations and individuals and to assure their adherence to international norms and agreements in this area.

In order to improve the stability and openness of the nation's financial environment, the Ministry of Finance is eager to broaden its network of agreements on the exchange of tax information. This helps the UAE maintain its leading position on global competitiveness indices and draws additional foreign direct investment into the nation.
 

The significance of the Dubai Free Zones Council (DFZC) sharing tax data with Ministry of Finance is to improve free zone user experience, being a critical factor in a flexible and sustainable future economy. In accordance with the Avoidance of Double Taxation Agreements that the UAE has signed with other nations, as well as international agreements relating to transparency and the exchange of information by international bodies and institutions, Dubai Free Zones Council (DFZC) will provide the MoF with the necessary tax information under the terms of this MoU. The Global Forum on Transparency and Exchange of Information for Tax Purposes criteria will also be followed by DFZC.