Dubai is situated on the southern end of the Persian Gulf and is one of the United Arab Emirates. Dubai is the second largest Emirate. Dubai is a popular tourist destination. With its skyscrapers and modern communication and banking systems Dubai attracts investors from Asia, Europe, the Middle East, India and the African continent. Tourism, the oil industry and financial services all make great contributions to the economy of Dubai. Dubai has grown as a tax haven and offshore jurisdiction offering the incorporation of Dubai Offshore Companies and offshore banking services among others.
The tax havens of the world are considered to be countries and territories which use low tax or zero tax regime to entice individuals to set up business companies and to invest within their territories. Tax havens are also well known for passing legislation which will protect the privacy of corporations and individuals who invest in their territories.
The United Arab Emirate of Dubai meets the criteria to be called tax haven. As a tax haven Dubai has a no tax policy for corporations which are registered in the jurisdiction but does no business there. Profits, interest, dividends and any other type of income earned abroad by a Dubai offshore company will not be taxed locally in the tax haven of Dubai. The tax haven of Dubai has no capital gains tax, inheritance tax, estate tax or income tax which is the primary characteristics of a pure tax haven.
The tax haven of Dubai has passed legislation which protects the privacy of its offshore investors. When incorporating an offshore company in the offshore tax haven of Dubai there is no need to make the name of the beneficial owners known to the Registrar of companies. The names of the persons registering an offshore company in Dubai and the names of shareholders and directors will not be filed with the public registry therefore it will not be made public. An offshore company needs one (1) shareholder and a total of two (2) directors for incorporation in the offshore tax haven of Dubai. A registered agent who is a citizen or local of the tax haven of Dubai must be used for incorporation of offshore companies in the jurisdiction according to offshore companies’ regulations.
Offshore companies incorporated in offshore tax haven Dubai must prepare annual accounting reports for the company. Whilst these reports must be prepared they are not to be presented to any government authority in Dubai this is in keeping with privacy laws provided for offshore corporations in the offshore tax haven. The annual accounting remains for the privacy of the Dubai Corporation. The accounting records of offshore corporations in the tax haven of Dubai can be kept at any location the company desires.
Dubai offshore corporations and foreign investors are free to set up offshore bank account at any of the offshore banking institutions in the tax haven. In tax haven Dubai there are many offshore banks and subsidiaries and branches of some of the world’s leading financial institutions. The tax haven of Dubai offers an economy which is thriving in a stable political environment. Like many other tax havens in the world offshore banking in Dubai is tax free. There is no tax imposed on the interest earned by offshore bank accounts in the tax haven. Dubai offshore banks provide customers with privacy and very efficient banking services. All information in an offshore bank account in the tax haven of Dubai is confidential and will only be given out in case of criminal investigations. Dubai offshore banks offer personal and corporate bank accounts. There is no need to travel to the jurisdiction to set up an offshore bank account. Services which can be expected at a Dubai offshore banking institution includes debit and credit cards services and online banking. Offshore banking in tax haven Dubai is being regulated and monitored by the United Arab Emirates Central bank.
Currently the tax haven of Dubai has no exchange controls in place. This makes it easy for individuals and offshore business corporations to transfer funds in and out of the offshore tax haven of Dubai. Dubai offshore corporation can capitalize on the absence of exchange controls to engage in international trade. The tax haven of Dubai has not signed any tax exchange agreements so far.
The offshore tax haven of Dubai has developed into a well accepted tax haven. As the years pass by Dubai’s importance has grown in the offshore world. The country has a thriving economy topped with stable political environment. Dubai as a tax haven gives investors the legal means to save on taxes and protect assets. The authorities in the tax haven of Dubai work along with all the major players in the offshore sector to ensure that the tax haven of Dubai remains among the top tax havens in the world.