UAE removed from EU Tax Haven Blacklist
On October 10, the UAE has been removed from the EU’s list of non-cooperative jurisdictions for tax purposes.
Following a rigorous review of its bloc’s lists of countries, the EU finance ministers decided to remove the UAE, given it has adopted new rules on offshore structures in September and passed necessary reforms to improve its tax policy framework and implement economic substance requirements for companies domiciled in the emirates.
The UAE was included on the list in March.
This announcement is outstanding news for the UAE as it would serve to dispel any potential negative investor trust that may have been created as a result of the UAE’s initial blacklisting.
The UAE, will continue to comply with EU standards on transparency and cooperation.
The implementation of the Economic Substance Regulations in April enhanced the requirements for entities registered in the UAE to substantiate their presence and economic activity in the country, through varying criteria enforced as per global standards.
After removing from the EU blacklist, the UAE market shall see more business from the European states during this last quarter of 2019. This also proves that the UAE is now compliant with the highest international standards on taxation as a mature and stable financial center.
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