To date, it is no secret that registration of a company or business in specialized offshore jurisdictions helps to optimize tax payments, and therefore allows to get more income to develop own business. However, before choosing an offshore jurisdiction appropriate for your business, the possibilities and advantages of particular offshore zones shall be carefully considered.
There is a wide range of offshore zones for tax optimization. They may be located in Europe or on exotic islands. Among this variety choosing the best offshore zone is quite difficult. However there are offshore zones meeting all business needs and requirements. One of such favorable tax planning jurisdictions is the United Arab Emirates.
The main advantages of this offshore zone are significant tax privileges and existing bilateral international double taxation avoidance agreements. Due to these business advantages, the United Arab Emirates are attractive for foreign businessmen and investors.
There is no taxation in this jurisdiction as such. Foreign companies registered in the UAE specialized economic zones are exempt from all types of corporate taxes and may be eligible for customs privileges. Exception is companies operating in the oil and gas, banking and hotel sectors.
The jurisdiction of offshore zones in the United Arab Emirates implies exempting the business from the following types of taxation:
- Taxes on income derived from sale of real estate in the UAE ;
- Taxes on profits from sale of securities registered both in the UAE and abroad;
- Taxes on income in the form of dividends and interest;
- Taxes on income and other types of corporate taxes.
Nevertheless the Emirates are not classified as an offshore jurisdiction, but as a jurisdiction fully recognized and respectable for business, allowing to use p tax advantages it provides. The United Arab Emirates are unique in their way as they provide the possibility of registration not only of non-resident companies, but also of fully resident companies doing business in the country and abroad, and at the same time enjoying full tax exemption in the UAE.
The main criteria in determining the most reliable offshore are reliability and recognition of jurisdiction, favorable taxation conditions, lack of international sanctions and possibility of obtaining the corporate tax residency without incurring the risk of taxation in the country. The United Arab Emirates fully and absolutely perfectly meet all these requirements.