The UAE is a white listed country that offers business opportunities which exist only in mature industrial and financial centres. International businesses moving to the UAE find themselves in a thriving market with excellent infrastructure.
Special economic zones, free trade zones, and UAE offshore companies offer 100 percent ownership, exemption from income and complete taxes, no wealth taxes, repatriation of profit and a wide network of 80 double tax treaties. Outside economic and free zones, significant incentives are being offered to investors and corporate governance provisions ensure transparency and accountability.
A probusiness government encouraging foreign investment has also developed the country into a cosmopolitan centre welcoming a diverse specialist and competitive workforce. Further, Dubai has emerged as a popular jurisdiction for the relocation of high net worth individuals and a strong alternative to UK, Switzerland, Monaco, Singapore and such countries.
Economic substance
The UAE is particularly well positioned to cope with the increasing pressure from onshore tax authorities to provide real economic substance. By making use of the UAE there are now opportunities available, even for small companies, to locate business functions there, realize tax savings and satisfy onshore tax authorities.
Tax residence
A free zone company in UAE enjoys full exemption from income and corporate taxation, 100 percent foreign ownership, no exchange restrictions, free profit repatriation and tax savings from UAE’s nearly 80 double tax treaties.
Free zone entities can issue residence permits and obtain tax residence certificates from the UAE authorities, for their foreign owners and executives. A free zone company, must have physical presence in the UAE.
A residence permit and a tax residence certificate can be useful to foreign owners and executives of free zones who wish to register their tax residence in the UAE. Banking institutions in UAE and outside, consider UAE tax residence certificates as sufficient proof of tax residency in the UAE.
Redomiciliation
Foreign companies can redomicile and enjoy the tax and other benefits provided by the UAE tax free regime and its wide network of double tax treaties. Companies redomicile in UAE for a variety of reasons including:
-
to benefit from a favourable tax environment
-
to take advantage of less stringent regulation and scrutiny
-
to reduce costs and survive downtown in global markets
-
to align their place of registration with their shareholder base
-
to move to an international financial centre
Efficient double tax treaties
The UAE has concluded nearly 80 double tax treaties, many of them with OECD countries.
Relocation and living
With no taxes applied on individuals and companies, no wealth taxes, no capital restrictions and 100 percent repatriation of capital and profits, coupled with political stability, excellent accessibility and sunny weather all around, the UAE is a very attractive proposition as a residency jurisdiction.