Presently, there is a multitude of so called tax heavens for business in the world. Essentially, these are jurisdictions representing certain tax benefits for business. Many of these jurisdictions levy taxes based on the territorial principle and do not levy taxes on the foreign capital. There are many cities and countries in the world which can provide special conditions for business setup and living. Some have good conditions for business and some for living. UAE is the ideal combination of both, business and living.
Dubai – the tax haven
Dubai, being a tax haven can provide the very best conditions for business and living. Quite recently, one of the international analytical agencies Knight Frank has published the results of its regular yearly study. The given study examined conditions and level of living in the very different regions all over the world. More than 20 cities were considered with the most favorable tax conditions.
The popularity of the various jurisdictions was determined based on the following parameters:
- The cost of living and quality of life.
- The cost of various goods and services.
- The total number of sunny days in a year
- Modern infrastructure.
- The government policy and stability of such policy.
- The availability of air and sea junctions.
Dubai has clinched the first place of this rating. The modern megapolis has got the highest marks in the following categories:
- Number of international schools and universities.
- Number of entertainment venues.
- Modern infrastructure.
- Number of sunny days.
The list of the best tax havens in the world also includes Palm de Majorca, Geneva and Cayman Islands.
Dubai – the tax haven for business and living
The Dubai jurisdiction gains ever-greater popularity in the world. The entrepreneurs and qualified specialists, wanting to gain maximum profit from their business pay their attention ever-more often to the United Arab Emirates. The greatest stimulus for attracting investment capitals and highly qualified specialists from all over the world are tax-free private income and profit from business.
Dubai represents a tax haven with a zero tax rate for legal persons and natural persons. There are no such terms as income tax from natural persons and corporate tax on profit from legal persons. Exactly for that reason, Dubai is recognized as the most favorable tax jurisdictions in the world. The following tax exemptions are in Dubai amongst others:
- Tax on private income and profit.
- Tax on capital gain and profit.
- Inheritance tax.
- Tax on income from property sale.
Obviously, these factors ensure Dubai high competitiveness on the international scale amongst multiple tax jurisdictions.
One of the significant factors for the attraction of investment is the double tax treaty agreement with a number of countries, preventing the double taxation of the financial assets. Not every modern tax haven can boast such a high number of advantages and opportunities for business and living.
It must be noted, that Dubai is not an offshore zone in its conventional sense. Dubai is not included in the list of offshore zones.
Offshore and Onshore tax-free companies in Dubai.
The most attractive factor of the United Arab Emirates is the opportunity to register offshore and onshore company in the Free Trade Zone. The registration of a company in the Emirates is linked to certain financial expenses, however all those expenses are compensated by the exemption from taxes.
It is necessary to determine a Free Trade Zone for the company registration, where you plan to perform your business activity. Each of these Free Trade Zones has its own advantages and opportunities in tax planning. Besides, there are tax benefits for the international trade.
You are provided with a full confidentiality of any information related to the ultimate beneficiaries and business owners, allowing for performing strategies for effective protection of the financial assets.
The offshore companies have also got the opportunity to purchase real estate on the territory of the Emirates.
Living in Dubai – other advantages – in addition to the tax benefits
The living standard in Dubai is worth a separate attention. Virtually, the whole world recognizes the living conditions in the Emirates as the most ideal. Wonderful weather conditions, the sun shines throughout the year, the lowest crime rate, the highest level of education and health care – all this makes living in Dubai safe and comfortable.
Dubai has duly conquered the status of the largest trade center in the world. The most contemporary shopping malls expect their guests with their world famous brands in Dubai. Here, you will find the best of the best from all over the world. By and large, the Dubai’s attraction as the best place to do business and live in a tax haven is duly reasoned for its objective reasons.