EN
DETo truly thrive, companies need a proactive approach that anticipates the potential short- and long-term impacts of tax planning decisions, coordinated on a global scale and aligned with broader business goals.
Executives should be asking key questions, such as
- Where should operations be located?
- What are the tax costs and benefits of entering a new market?
- Which type of entity structure is optimal?
- What are the regulatory tax requirements?
- How should operations be financed?
- What will be the impact on the effective global tax rate?
Additionally, with frequent changes to tax legislation and increasing scrutiny of tax structures, executives need to
- Ensure that tax planning remains relevant to evolving business operations and aligns with the company’s culture
- Monitor continuous changes in tax law across multiple jurisdictions
- Manage compliance and internal control requirements
- Address heightened scrutiny of tax decisions by an expanding range of regulators
Our services
Paulson & Partner’s international tax team is here to help you avoid pitfalls and seize tax opportunities by navigating the complexities of multiple tax systems and international regulations.
We tackle these challenges with an international perspective, having supported numerous clients in planning and implementing tax structures for expansion across the Middle East, Africa, Asia, and Europe. Our services include (displayed in boxes/flashcards)
Automatic Exchange of Information (AEOI)
As businesses become increasingly global, Automatic Exchange of Information (AEOI) has expanded in scope, driven by the need to reduce tax evasion through transparency. Building on the US Foreign Account Tax Compliance Act (FATCA), the OECD’s Common Reporting Standard (CRS) represents another step toward a globally coordinated approach to the automatic exchange of financial account information for non-resident customers and investors.
Paulson and Partners supports clients in navigating the complexities of international tax compliance and global reporting. AEOI involves the systematic transmission of substantial financial information—from investment income to account balances—from the jurisdiction where the account is held to the tax authority in the taxpayer’s country of residence. This global exchange enables tax authorities to validate taxpayer-reported income, reinforcing transparency and accountability.
The financial services industry faces significant added responsibilities with AEOI, as global financial institutions must now meet rigorous identification and reporting requirements. These responsibilities vary by jurisdiction in detail and timing, posing both reputational and financial risks for organizations that fall short of compliance. In this environment, financial institutions need agile, reliable systems to manage complex customer data and ensure regulatory complianceacross all operating regions.
With the rapid pace of regulatory change, businesses often face challenges in maintaining consistent AEOI compliance. Paulson and Partners provides a full suite of tailored services to help clients confidently navigate AEOI requirements across jurisdictions. Our services integrate advanced technology-based solutions, project management accelerators, technical tax advisory, and specialized training programs. We also offer customized process and control planning to ensure efficient compliance.
Our team includes highly experienced professionals, including former regulators, tax authorities, and industry experts, who have helped develop Intergovernmental Agreements (IGAs), negotiate bilateral and multilateral tax instruments, and draft compliance guidance. By maintaining close communication with tax authorities and active involvement in global advisory committees, our team stays ahead of regulatory changes, ensuring that clients meet evolving AEOI standards.
The United Arab Emirates (UAE) has enacted FATCA and CRS regulations to counter tax evasion and promote ethical tax practices. These policies are designed to ensure appropriate tax payments are made to the relevant tax authorities. Financial institutions in the UAE—including banks, investment companies, and specific insurance providers—are mandated to submit annual compliance reports to the Ministry of Finance. These reports, which require approval by a local auditor, demonstrate alignment with FATCA and CRS requirements.
At Paulson and Partners, we simplify global information reporting, ensuring that systematic information—such as investment income—flows seamlessly between tax administrations. This structure allows tax authorities to verify that taxpayers accurately report income, upholding the highest standards of international tax compliance in the UAE.
Our UAE-based team comprises highly experienced professionals who have contributed to the development of IGAs, negotiated international tax treaties, and crafted compliance guidelines. We maintain active dialogues with local tax authorities and governmental officials, providing clients with up-to-date, compliant strategies that align with evolving global tax standards and minimize business disruption.
In response to the European Commission’s concerns, the United Arab Emirates (UAE) was added to the European Union’s list of non-cooperative tax jurisdictions. Consequently, the UAE introduced Economic Substance Regulations (ESR) through Cabinet Decision No. 57 of 2020, which took effect on 1 January 2019.
Under ESR, UAE entities—including offshore companies and branches of both local and foreign companies—that conduct and derive income from Relevant Activities must maintain an economic substance in the UAE tailored to each activity. Failure to comply with the annual filing requirements can lead to significant penalties.
This document provides an overview of the ESR requirements, including key aspects of notification and reporting obligations, and outlines some practical challenges that organizations may encounter when striving to meet ESR compliance standards.
