The Ministry of Finance (MoF) of the United Arab Emirates (UAE) signed a Memorandum of Understanding (MoU) with the Ras al-Khaimah Free Trade Zone, (RAK FTZ) on 17th November, 2014 (WAM). This agreement ensures that the free zone complies with the international standards of transparency in the exchange of information for tax purposes.
Ras al-Khaimah is one of the seven Emirates that form the UAE. The Ras al-Khaimah free zone is a special economic zone in which businesses may locate and benefit from certain privileges in respect of access to infrastructure, business support services and tax breaks.
The agreement will provide transparency and a clear exchange of information between both MoF and RAK FTZ, ensuring that a principled process is applied to tax legislation that affects both companies and individuals. Furthermore, the MoU aims to strengthen the teamwork between the competent authorities responsible for the exchange of information for tax purposes, elevating the UAE’s tax practices in line with a global benchmark.
