Britain's Culture Secretary Oliver Dowden said the G7 wants to forge a compelling vision of how tech should support and enhance open and democratic societies in the digital age'. AFP
Britain's Culture Secretary Oliver Dowden said the G7 wants to forge a compelling vision of how tech should support and enhance open and democratic societies in the digital age'. AFP
Britain's Culture Secretary Oliver Dowden said the G7 wants to forge a compelling vision of how tech should support and enhance open and democratic societies in the digital age'. AFP
Britain's Culture Secretary Oliver Dowden said the G7 wants to forge a compelling vision of how tech should support and enhance open and democratic societies in the digital age'. AFP

Technology

G7 leaders plan to ‘turbocharge' exports by digitising outdated paper systems

Group also agrees to tackle online safety to reduce illegal and harmful activity

Alice Haine
Alice Haine

April 28, 2021

  • English
  • Arabic

Leaders from the G7 agreed to replace outdated paper-based systems with digital tools in a bid to speed up exports and international trade, during a virtual meeting hosted by Britain's Culture Secretary on Wednesday.
Oliver Dowden and his counterparts from Canada, France, Germany, Italy, Japan, the US and the EU agreed on plans "to turbocharge exports by digitising the cumbersome and centuries-old paper-based system" for key international trade transactions, while also improving the free flow of data.

The G7 also agreed to a series of principles to tackle online safety by ensuring major tech companies have systems and processes in place that reduce illegal and harmful activity and prioritise child protection.

The joint ministerial declaration, signed ahead of June’s G7 summit, is part of the first of seven ministerial declarations due to be signed this year.

“As a coalition of the world’s leading democracies and technological powers, we want to forge a compelling vision of how tech should support and enhance open and democratic societies in the digital age," Mr Dowden said.

“Together we have agreed on a number of priorities in areas ranging from internet safety to digital competition to make sure the digital revolution is a democratic one that enhances global prosperity for all.”

The leaders also agreed to tackle concerns over the market power of big tech platforms, with international regulators and policymakers set to meet the UK’s Competition and Markets Authority in autumn to discuss long-term co-ordination and enforcement.

Felicity Burch, director of digital for the Confederation of British Industry, said the latest moves from the G7 mark “a major milestone in the international digital agenda”.

“Over the last year, digital technologies have acted as a bedrock of resilience for economies,” Ms Burch said.

"This agreement can be a springboard for an inclusive, sustainable recovery and industry is ready to play its part to deliver this shared vision.”

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How to get there

Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
 

Mohamed bin Zayed Majlis
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Ten tax points to be aware of in 2026

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If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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