The UAE continues to advance its global tax leadership. On 20 November 2025, the Federal Tax Authority (FTA) and the State Taxation Administration of the People’s Republic of China (STA) signed a landmark Memorandum of Understanding (MoU) in Dubai, establishing a new framework for deep, strategic cooperation in taxation.
This MoU is another milestone in the UAE’s commitment to strengthening global partnerships, enhancing compliance systems, and accelerating digital transformation across its tax ecosystem.
Overview of the UAE–China Tax Cooperation MoU
The MoU was formally signed at the FTA headquarters by:
- H.E. Khalid Ali Al Bustani — Director-General, Federal Tax Authority (UAE)
- H.E. Jinglin Hu — Commissioner, State Taxation Administration (China)
The agreement strengthens bilateral collaboration between the two tax authorities, with a focus on:
- Exchange of expertise
- Sharing technical knowledge
- Joint development of best practices
- Cooperation on new tax policies and procedures
- Digital transformation and training initiatives
- Mutual visits, official meetings, and coordinated development proposals
Officials emphasized that the MoU aligns with the FTA’s strategy to expand international partnerships and build a tax system that emphasizes transparency, compliance, and advanced technology.
Key Highlights of the MoU
Deep Expertise & Knowledge Exchange
Both authorities agreed to exchange:
- Tax administration best practices
- Technical expertise
- Insights on implementing new tax rules
- Information on emerging tax policies and global regulatory trends
This knowledge-sharing helps both sides benchmark themselves against the world’s leading tax systems.
Enhanced Coordination & Joint Projects
The MoU paves the way for coordinated:
- Policy discussions
- Training programs
- Joint improvement initiatives
- Development of new tax administrative ideas
This ensures smoother international tax processes for businesses operating across both markets.
Strengthening Governance & Transparency
The agreement directly supports the FTA’s objective to create a tax environment rooted in:
- High governance standards
- Clear procedures
- Greater taxpayer confidence
- Transparent administration of tax laws
This commitment promotes voluntary compliance and enhances the UAE’s global standing.
Focus on Digital Transformation
One of the most important pillars of the MoU is digital capability enhancement.
The cooperation includes:
- Development of advanced digital tax systems
- Adoption of innovative tax technology solutions
- Sharing experience on digital compliance platforms
- Upgrading tax service delivery through automation
This aligns with the UAE’s leadership in digital government transformation.
Training, Capacity Building & Professional Development
The MoU encourages:
- Joint training programs
- Staff exchange visits
- Capability development
- Technical sessions on tax administration
This helps both authorities strengthen workforce expertise and adopt emerging global best practices.
Why This MoU Matters for UAE Businesses
While the agreement is between tax authorities, its impact will gradually be felt across the business landscape in multiple ways:
More Efficient & Transparent Tax Processes
As digital cooperation expands, businesses can expect:
- Better online tax systems
- Faster processing
- Fewer administrative errors
- Clearer compliance requirements
The UAE’s push toward best-in-class digital tax administration directly benefits registrants.
Stronger Global Tax Alignment
China is one of the UAE’s largest economic partners. Enhanced cooperation supports:
- Multinational operations
- Cross-border investments
- Supply chain tax clarity
- Better understanding of bilateral tax frameworks
This contributes to smoother business operations for groups working in both countries.
Improved Tax Governance & Compliance Standards
The MoU supports the UAE’s long-term objectives:
- Stronger tax administration
- Higher accuracy in filings
- Enhanced transparency
- More consistent enforcement of tax rules
Businesses will need to ensure tighter processes, internal controls, and documentation.
More Advanced Digital Tax Services
As both authorities collaborate on digital transformation, UAE businesses will benefit from:
- Upgraded portals
- Automated services
- Improved user experience
- Faster resolution of tax matters
This supports compliance while reducing administrative burden.
What This Means for International Tax Competitiveness
With this agreement, the UAE:
- Strengthens its global tax credibility
- Enhances its position as a digital taxation leader
- Continues aligning with international best practices
- Reinforces investor confidence
- Supports long-term economic growth
The MoU is part of a broader UAE strategy to build a tax environment built on compliance, technology, transparency, and international cooperation.
How The Capital Zone Supports Businesses in a Changing Tax Landscape
As the UAE strengthens global tax cooperation and compliance standards, businesses must stay updated and prepared. The Capital Zone provides end-to-end tax support to help you navigate these changes with confidence.
Our key services include:
- Corporate Tax Advisory & Filing – Full compliance with UAE Corporate Tax laws, documentation, and submissions.
- VAT Registration, Accounting & Filing – Complete VAT cycle management from invoicing to returns.
- Cross-Border Tax Advisory – Support for UAE–China operations, international tax treaties, and group structures.
- Tax Governance & Compliance Frameworks – Policies, internal controls, and risk assessments for audit-ready compliance.
- Digital Tax Transformation Support – Guidance for upcoming digital tax administration and reporting requirements.
- Regulatory Updates & Tax Alerts – Timely updates on new MoUs, tax rules, and policy changes.
Whether you operate in the Mainland, a Free Zone, or across multiple jurisdictions, The Capital Zone ensures your tax systems remain compliant, efficient, and future-ready.
Office Address:
Office 605, Park Lane Tower, Business Bay, Dubai – UAE
General Inquiries: info@thecapitalzone.com | +971 4 285 0200
Marketing & Collaborations: marketing@thecapitalzone.com | +971 50 209 9514
