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Tax Haven UAE

On the bases that tax haven is denoted as a territory with zero or nominal taxes, the UAE are habitually considered a tax haven. At a federal level, there are no corporate taxes, and while there are local corporate income taxes, these currently apply only to foreign oil companies and branches of foreign banks. To support the declaration of tax haven UAE, there are also no withholding taxes or personal taxes of any kind applicable in the UAE.

Within tax haven United Arab Emirates UAE you will find, Dubai, one of the seven territories that make up the tax haven UAE. The tax haven of Dubai is situated at the south of the Persian Gulf. In all of tax haven UAE, Dubai is the second largest. The official language of Dubai is Arabic but English is widely spoken and recognized as the business language in the tax haven. Here you will find the Dubai International Financial Centre (“DIFC”) – a financial free zone based in the Emirate of Dubai.

In the Uae tax haven, there are territories that qualify as a tax havens as they offer companies that are incorporated there, a tax free environment for doing business. Offshore companies that are set up in the Jebel Ali Free Zone (JAFZ) and the Ras Al Khaimah Free Trade Zone (RAK FTZ) . These companies are mostly manufacturing companies which export its entire turnover. These companies can be owned by foreigners. Companies with no business interest in those UAE tax havens of Dubai and Ras Al Khaimah will pay no local taxes. The UAE tax haven does not tax business corporations on incomes which they realize outside of the territory. In Dubai there is no income tax, corporate tax, capital gains tax or withholding tax. Offshore companies set up in the Jebel Ali Free zone are exempted from import duty and is guaranteed exemption from local taxes for fifty (50) years.

Offshore banking has become very popular in the offshore tax haven UAE, especially in Dubai. Offshore bank accounts can be set up for individuals and offshore corporations. In the UAE, Dubai offshore bank accounts benefit from privacy laws. Information in a Dubai offshore bank account cannot be made available to third parties without the consent of the offshore bank account holder. Information in offshore bank accounts at UAE and Dubai offshore banks is considered to be private and can only be given out in cases of criminal investigations. The offshore banks available in Dubai are very efficient institutions. Services offered at offshore bank in tax haven Dubai include credit cards and debits cards which can be used anywhere in the world, internet banking among other services.

The company legislation of UAE Ta havens, Dubai also provides privacy for the owners of offshore companies in the tax haven. The accounting records of such companies remain private whilst there is no need for the owners of the offshore companies to make their names and identity known of the Registrar of Companies in the tax haven. An offshore company in Dubai needs only one shareholder and two directors for offshore company formation.

In tax haven Dubai there is no exchange control in place at present. This makes it easy for persons using the free trade zone in the territory to engage in international trade. The absence of exchange controls in Dubai also makes it easy for the owners of offshore bank accounts to move capital in and out of the country.

The government of the offshore tax haven of Dubai recently created its Dubai International Finance Centre (DIFC). The DIFC will act as an access point for banks, brokers and other financial institutions wishing to access the markets in Dubai and other emirates. The Dubai International Finance Centre will focus on banking, asset management, Islamic finance and operations, insurance, investment planning and capital markets. Dubai government has shown its dedication to the tax haven with the introduction of the DIFC. The government plans on extending the reach of the DIFC making it powerful as the international finance centers of Hong Kong, London and New York.

he UAE tax havens are steadily making a mark as a top tax haven and international finance center. There is much modern legislation to support the offshore companies, banking and asset management which is being offered in the jurisdiction today. The very popular and sophisticated cities of tax haven UAE, such as Dubai, are the headquarters for many of the world’s top companies as the tax haven gives corporations and individuals a purely legal means of reducing taxes which is very important these days given the state of the world economy.

The tax haven UAE has entered into a number of bilateral treaties on double taxation Double Taxation Agreements DTAs. Some of the DTAs are combined with tax information exchange agreements (TIEAs). This would give a foreign government considerable scope compared to the remainder of the legal exceptions to secrecy, as the latter allow the exchange of information only where criminal tax matters are involved. But still, many countries, including the UK, do not have TIEAs with the UAE.