Due to the traditional image etched in people’s minds of shady tax holiday islands (where secretive bankers do clandestine deals with international smugglers carrying sacks of ill- gotten cash !!!!), offshore jurisdictions around the world and companies set up in such jurisdictions often get a bad reputation by association.
Thankfully over the past decade, the world has rapidly evolved where compliance and transparency are constant companions of most international businesses and entrepreneurs. Even jurisdictions with ‘flexible’ laws and procedures have been forced to change their errant ways.
However, there is still a sizeable market for legal tax planning. Multinational businesses look at certain geographies for tax efficient solutions that will assist in their tax planning while being legally compliant with local and international laws.
The UAE in general and Dubai in particular, has put its hand up as a viable option for offshore tax planning. Its political stability and ease of doing business has quickly made it rise in the ranks in the eyes of global businesses. Through a slew of business-friendly free zones like Jebel Ali Free Zone (JAFZ) and Ras Al Khaimah International Corporate Centre (RAKICC), UAE provides a few solutions and incentives for businessmen looking for tax efficient solutions.
Some of the key benefits of setting up an offshore company in UAE are:
- No corporate or individual taxes
- Modern legislation – in line with the best practices around the world
- Ease of formation and maintenance
- Registered address in UAE
- International business can be conducted
- No limitations on any nationality (except internationally sanctioned countries)
- Free income and capital expatriation
- Confidentiality of corporate information
- Access to local and international banks
- Protected assets – the legal system prevents international creditors from seizing assets tied up in the offshore company
- Lawsuit Protection – assets held under offshore entities are safe under Lawsuit Protection.
How can PKF assist
- Advising on devising a tax efficient and secure structure for your business
- Expert knowledge on UAE offshore centres – assists in catering to all your needs
- Expert assistance and end to end handholding in formation process
- Timely updates on latest regulatory developments
- Assistance in annual maintenance of offshore entities