On Thursday, Algeria took a significant step towards strengthening international tax cooperation by signing the Multilateral Convention on Mutual Administrative Assistance in Tax Matters at the OECD Headquarters in Paris. The agreement, signed by Ms. Amel Abdellatif, Algeria’s Tax Commissioner, marks a pivotal moment for the country and brings the total number of jurisdictions participating in the Convention to 148.
This important development positions Algeria within the world’s most extensive treaty focused on tax cooperation and information sharing, highlighting the nation’s commitment to enhancing transparency and accountability in its tax practices. By joining the Convention, Algeria will gain the ability to exchange vital tax information with 147 other jurisdictions, including all major financial centers, thereby expanding its capacity to tackle financial transparency issues effectively.
The Convention facilitates a variety of mutual assistance mechanisms in tax matters, such as information exchanges upon request, spontaneous information sharing, automatic exchanges, overseas tax examinations, simultaneous tax examinations, and support in tax collection. These mechanisms are designed to foster collaboration among jurisdictions while ensuring robust safeguards to protect taxpayers’ rights.
Moreover, this Convention serves as a crucial instrument for the swift implementation of the Standard for Automatic Exchange of Financial Account Information in Tax Matters (CRS), which was developed by the OECD and G20 countries. More than 110 jurisdictions are already utilizing the CRS to share information on offshore financial accounts automatically, contributing to a more interconnected global tax landscape.
In addition to its role in promoting transparency, the Convention is a powerful tool in the global fight against illicit financial flows, aligning with the objectives of the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project. This alignment underscores Algeria’s proactive approach to combatting tax evasion and avoidance.
With Algeria’s commitment to this international framework, the country is set to enhance its tax administration capabilities and foster greater financial integrity, ultimately benefiting its economy and international relations. The signing of the Convention represents a significant milestone in Algeria’s ongoing efforts to align its tax policies with global standards and reinforce its position in the international community.