#The Concept of Tax Residence in UAE

[theprivatewolf]

Taxes In UAE For Foreigners: Everything You Need To Know

The United Arab Emirates (UAE) is known for its dynamic business environment, luxurious lifestyle, and tax advantages. For foreigners looking to work, invest, or set up businesses in the UAE, understanding the country’s tax system is crucial. In this guide, we will explore the ins and outs of taxes in the UAE for foreigners.

Basic Overview of the UAE Tax System

The UAE operates on a territorial tax system, which means that taxes are imposed only on activities that occur within the country’s borders. This tax system has several key components:

No Personal Income Tax: Individuals in the UAE, including foreigners, are not subject to personal income tax. This is a significant advantage for expatriates.

No Capital Gains Tax: There is no tax on capital gains in the UAE, making it an attractive destination for investors.

No Inheritance Tax: The UAE does not impose inheritance tax on the transfer of assets upon a person’s demise.

Income Tax in UAE for Foreigners

As mentioned, there is no personal income tax for individuals in the UAE. This means that foreign workers can enjoy their earnings without the burden of income tax deductions, allowing them to save more of their income.

VAT in UAE

The UAE introduced Value Added Tax (VAT) in 2018. Currently set at 5%, VAT applies to most goods and services, but there are several exceptions, including essential food items, healthcare services, and education. Businesses with an annual turnover exceeding the mandatory threshold must register for VAT.

Other Indirect Taxes Foreigners Should Be Aware Of

In addition to VAT, the UAE imposes excise taxes on specific goods, such as tobacco products and sugary drinks. Understanding these taxes is essential, as they can significantly affect the cost of certain items.

Tax Obligations for Foreign Companies

Foreign companies operating in the UAE should be aware of the following tax obligations:

Corporate Income Tax: As of now, the UAE does not impose corporate income tax on businesses, which is advantageous for foreign companies operating in the country.

Withholding Tax: The UAE generally does not impose withholding tax on dividends, interest, or royalties, but it’s essential to review the specifics of tax treaties between the UAE and your home country.

Tax-Free Zones for Foreign Businesses

The UAE offers various free zones designed to attract foreign investment. Companies registered in these zones can benefit from 100% foreign ownership, no import or export duties, and no personal income tax for employees. Some of the popular free zones include Dubai Multi Commodities Centre (DMCC), Jebel Ali Free Zone (JAFZA), and Abu Dhabi Global Market (ADGM).

Navigating the UAE Tax Landscape

Navigating the UAE tax landscape can be complex, especially for foreign businesses and investors. It’s advisable to seek professional guidance from tax advisors and consultants who are well-versed in UAE tax regulations. This will help ensure that you comply with all obligations and take full advantage of the tax benefits the UAE has to offer.

In summary, the UAE’s tax system is highly favorable for foreigners. With no personal income tax, a reasonable VAT rate, and numerous tax-free zones, it’s a prime destination for expatriates, entrepreneurs, and investors looking to make the most of their earnings and business opportunities. However, staying informed about tax regulations and consulting experts is essential to make the most of the UAE’s tax advantages.

M.Hussnain

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[simplysolvedagency]

What Is Transfer Pricing, And How Does It Impact My UAE-based Business?

What is Transfer Pricing?

In the wake of the implementation of Corporate Tax in UAE, The idea of transfer Pricing (TP) is receiving greater attention in the Ministry of Finance (MoF) released Questions and Answers as well as the Public Consultation documents.

In the case of many locally-owned companies, this idea could be completely new, leading to numerous issues and Transfer Pricing considerations for implementation. The topic of this article is transfer Pricing, as well as its implications for UAE, which will be discussed. UAE will be reviewed to provide more information to business owners.

The most common definition of transfer pricing is commonly referred to as:

“the prices of goods and services sold or purchased between the entities with associated parties.”

A related party is an entity or person with a prior relationship with a company through control, ownership, or kinship (in instances of natural people).

Naturally, related party transactions may allow entities to manipulate profit. Therefore, a strong emphasis on transfer Pricing is evident in an introduction to the UAE corporate tax introduction. The world’s tax justice network defines Transfer Pricing as “a technique used by multinational corporations to shift profits out of the countries where they operate and into tax havens.” 

Both definitions explain that transfer prices are a way to make money. But it’s helpful to go back and expand the definition. One could include that Transfer Pricing means:

A tax law to prevent abuse was enacted to enforce the “arm’s     length” principle.

It is a requirement that the price of the goods and services     charged by the respective parties must be precisely the same as they would     be should the parties involved in this transaction have never been     connected.

The goal of the arm’s-length concept and transfer pricing (“TP”) guidelines is to ensure that there are no instances of pricing mismatch in transfers due to improper transfer Pricing methods. In which the prices of transfers are deliberately manipulated to gain certain tax advantages which benefit several related entities.

Transfer pricing is of crucial importance to corporate taxation. Transfer Pricing directly impacts the distribution of losses and profits for companies subject to corporate tax. Notably, the practices of Transfer Pricing taxpayers have an immediate impact on the tax revenues of a nation.

Suppose the tax rates for corporations of the respective countries differ significantly. In that case, the associated parties might be motivated to establish their transfer rates to allocate profits to the tax-free jurisdiction, thus reducing the total (group) global corporate tax burden.

Even when a country has lower tax rates and is not governed by Transfer Pricing laws, transfer mispricing could result in substantial tax revenue being removed.

For instance:

Company A, a tax resident of Bangladesh, manufactures electronic and personal computers in a country taxed at a rate of 32.5 percent. The company sells its manufactured items to the UAE-related tax-resident business Company B, which pays 0 percent or the corporate tax rate of 9% for the resale of its products in third markets and the UAE.

In this scenario, company A will likely be driven to sell the product for price or with a lower profit cost to company B. Company B can resell the product with the highest possible margin and take home the more significant portion of the profits, to make both companies pay corporate taxes at a lower amount.

Tax authorities in Bangladesh are likely to audit and modify the tax on corporate income paid by company A, thereby taxing a substantial portion of the profits that the UAE taxes. Suppose company B had paid taxes on corporate income in the UAE.

In that case, company B is likely to be keen to reduce the tax paid by the UAE to avoid and lessen the phenomenon known as “double economic taxation” through the transfer pricing adjustment. That’s why countries with corporate tax systems, in general, must develop transfer pricing laws and establish an administrative capacity to manage the request for adjustment.

Additionally, accounting, as well as legal and corporate tax laws and practices, vary from one country to the next and from country to country. It is essential to be aligned with the Transfer Pricing law to ensure that the appropriate TP adjustments are based on the same rules and principles as the Transfer Pricing procedure.

Will It Impact A UAE-Based Business?

The simple answer is yes. The documents published by the MoF documents ( Press release and Public Consultation) clarify that UAE companies must adhere to Transfer Pricing regulations and documentation requirements based on the Transfer Pricing Guidelines.

In the context of the Corporation Tax introduction as part of the Corporate Tax introduction, the UAE will implement Transfer Pricing rules.

That means that all transactions between related parties and persons who are connected (“intercompany transaction”) will have to comply with applicable TP requirements according to the principle of arm’s length outlined in the OECD Transfer Pricing Guidelines.

Who are the Related Parties?

As per the UAE Corporate Tax Consultation Document [22��(“Consultation Paper”), A related person is an individual an entity with an existing connection to a business by control, ownership, or family kinship (in cases of natural individuals).

The document also lists these relationships in the form of connected parties:

A minimum of two or more persons who are related with the 4th     degree of kinship or affiliation, for example, through marriage, birth, or     adoption;

When alone or in conjunction with a partner, a person, or a     legal entity, the individual directly or indirectly holds more than 50% of     this legal entity.

One or more legal bodies, where one legal entity on its own     or in conjunction with a related entity directly or indirectly, holds at     least a 50% percentage of or controls each legal entity

More than two legal entities, if the taxpayer, either alone     or in conjunction with a related person directly or indirectly, holds at     least 50% of each or is the sole owner;

A taxpayer and its branch or permanent establishment

Members of the same unincorporated partnership and

Non-exempt and exempt business activities of the same     individual (for instance, an exempt-free zone-based business).

Who Are Connected Persons?

Consultation Paper Consultation Paper stresses that in the absence of taxation on personal income in the UAE, individuals who own tax-deductible companies would be encouraged to reduce the UAE corporate tax base through excessive payments to themselves or those associated with them.

So, benefits or payments given by a company for the “Connected Persons” will be tax-deductible only if the company can show that the benefit or payment conforms to “arm’s length” or the “arm’s length principle” and the expense is entirely and solely for the benefit of your business.

Connected Persons differ as Related Parties. A person is considered as being connected to a business in the scope of the UAE Corporate Tax regime it is:

An individual who either directly or indirectly owns an     ownership control or interest in the tax-paying person.

An officer or director of a taxable person.

An individual who is related to the director, owner, or     another officer tax-paying person in the extent of the 4th degree of     family kinships such as through marriage, birth, or adoption.

If the tax-paying person is a member of an unincorporated     partnership or any other     partner of the same partnership and

A Related Party of any of the above.

What Are the Compliance Obligations?

Transfer Pricing rules usually place the onus probandi (burden of evidence) on the taxpayer. The taxpayer is responsible for intercompany transactions with an amount greater than a specific threshold in the applicable tax year to create the Transfer Pricing documents and show that the transactions between its companies were carried out at an “arm’s length.”

The value of intercompany transactions has yet to be defined and is expected to be clarified following the implementation of UAE Corporate Tax Legislation. Consultation Paper Consultation Paper does specify the mandatory Transfer Pricing documentation that will comprise a Local File along with a Master file (according to the formatting and content required in OECD BEPS Act 13 as well as following the World’s Best practices).

Additionally, the arm’s-length nature of intercompany transactions must be confirmed using any of the internationally accepted Transfer Pricing methods or another approach when the business can prove that the specified method can’t be used reasonably.

If the requirements are met, companies must complete and submit a Transfer Pricing disclosure form with information about their intercompany transactions. It is unclear how it is necessary to submit the Transfer Pricing disclosure form will need to be filed simultaneously with when filing the tax return (i.e., at least 9 months from the date of expiration of the relevant period of tax) or by an earlier date.

[aurabusinessservices]

TAX RESIDENCY CERTIFICATE

The UAE’s thriving economic activity is currently improving international trade links, but they can also become complicated when they are exposed to the tax system. Due to this, businesses are battling the issue of double taxation.

To address this issue, the concept of obtaining a Tax Residency Certificate in the UAE appears as a solution.The TRC is a certificate that allows qualifying government entities, businesses, and people to take advantage of double taxation treaties signed by UAE.

For natural persons, the applicant must have been a resident of the UAE for at least 180 days whereas for legal persons, he/she must have been established for a period of at least one year.The UAE’s thriving economic activity is currently improving international trade links, but they can also become complicated when they are exposed to the tax system. Due to this, businesses are battling the issue of double taxation. To address this issue, the concept of obtaining a Tax Residency Certificate in the UAE appears as a solution.

The TRC is a certificate that allows qualifying government entities, businesses, and people to take advantage of double taxation treaties signed by UAE. For natural persons, the applicant must have been a resident of the UAE for at least 180 days whereas for legal persons, he/she must have been established for a period of at least one year.

[rewindconsultancysblog]

Unveiling the Complexities of Corporation Taxation in Dubai, UAE

In the bustling business landscape of Dubai, understanding corporation taxation is essential for companies looking to navigate the complexities of the UAE's tax system. Corporation tax, also known as corporate tax, is a levy imposed on the profits of businesses operating in Dubai and the wider UAE. In this blog post, we'll delve into the intricacies of corporation taxation in Dubai, UAE, shedding light on key concepts, regulations, and considerations that businesses need to be aware of.

Understanding Corporation Tax in Dubai, UAE

Corporation tax in Dubai, UAE is governed by federal laws and regulations set forth by the UAE Ministry of Finance. Unlike many other countries, the UAE does not impose a federal income tax on corporations. Instead, each emirate, including Dubai, has the authority to levy taxes independently. In Dubai, corporations are subject to a corporate tax rate of 0% on profits, making it an attractive destination for businesses seeking tax-friendly environments.

Tax Residency and Nexus

One of the fundamental aspects of corporation taxation in Dubai, UAE is determining tax residency and nexus. While Dubai does not impose corporate tax on profits, businesses must establish their tax residency status based on their activities, operations, and presence within the UAE. Understanding the criteria for tax residency is crucial for businesses to ensure compliance with local tax laws.

Tax Planning and Optimization

Despite the absence of corporation tax in Dubai, UAE, businesses still engage in tax planning and optimization strategies to enhance their financial efficiency and mitigate tax risks. This may involve structuring business operations, transactions, and investments in a tax-efficient manner, taking advantage of available incentives and exemptions, and ensuring compliance with relevant tax regulations.

Compliance and Reporting Obligations

While Dubai may not impose corporate tax on profits, businesses operating in the emirate are still required to comply with various reporting obligations and regulatory requirements. This includes maintaining accurate financial records, submitting annual financial statements, and adhering to other statutory reporting obligations imposed by relevant regulatory authorities.

Rewind Consultancy: Your Trusted Tax Partner

At Rewind Consultancy, we understand the nuances of corporation taxation in Dubai, UAE, and are committed to helping businesses navigate the complexities of the UAE's tax landscape. Our team of experienced tax professionals provides expert guidance and tailored solutions to ensure compliance with local tax laws while optimizing tax outcomes for our clients.

In conclusion, corporation taxation in Dubai, UAE is a multifaceted subject that requires careful consideration and strategic planning. By understanding the intricacies of tax residency, nexus, tax planning, compliance, and reporting obligations, businesses can effectively manage their tax affairs and position themselves for success in the dynamic business environment of Dubai, UAE.

For comprehensive tax advisory services and expert guidance on corporation taxation in Dubai, UAE, trust Rewind Consultancy as your dedicated tax partner.

Contact us today to learn more about our services and how we can assist you with your tax needs.

[cigdubaiae]

Setting Up Your Dream Venture: Company Formation in the UAE

The UAE's vibrant economy and strategic location have made it a fertile ground for ambitious entrepreneurs to cultivate their dream ventures. If you're brimming with a groundbreaking idea and seeking to plant the seeds of your business in the UAE, this guide will serve as your roadmap to a successful company formation process.

Building a Strong Foundation: Market Research and Planning

Before delving into legalities, solidify your business concept through meticulous market research:

Understanding the Competition: Conduct a thorough analysis of existing businesses in your chosen sector. Identify their strengths and weaknesses to carve out a unique niche for your company and ensure your product or service fills a gap in the market.

Target Market Analysis: Define your ideal customer. Analyze demographics, purchasing habits, and unmet needs to tailor your product or service effectively. This ensures you're targeting the right audience and maximizing your potential customer base.

Developing a Business Plan: Construct a comprehensive business plan that outlines your company's goals, strategies, financial projections, and marketing plan. This roadmap will be instrumental in attracting investors and securing funding, acting as a blueprint for your business's growth.

Choosing the Right Pot for Your Plant: Selecting Your Business Structure

The UAE offers a variety of legal structures, each catering to specific needs:

Limited Liability Company (LLC): Popular amongst small and medium-sized businesses, LLCs limit owner liability. However, on the mainland, foreign ownership is capped at 49%, requiring a local partner (unless in specific circumstances). Free zones often offer 100% foreign ownership.

Sole Proprietorship: Ideal for single-owned businesses, it offers a simple setup but no liability protection, meaning the owner's personal assets are at risk.

Branch Office: An existing foreign company can set up a branch in the UAE to operate under the parent company's license.

Planting the Seeds: The Company Formation Process

Once you have a solidified plan and chosen structure, it's time to navigate the legalities involved in company formation:

Define Your Business Activities: Clearly define the core activities your company will undertake. This will determine the licenses and permits you need to operate legally.

Location, Location, Location: Decide on your business location: mainland UAE, a Free Zone, or an offshore company. Each has distinct advantages (like tax benefits in Free Zones) and limitations (like geographical restrictions). Consider factors like business activity restrictions and ease of operation when making your choice.

Pick a Memorable Name: Select a unique and appropriate business name that complies with UAE naming regulations and reflects your brand identity.

Company Registration: Register your company with the Department of Economic Development (DED) for the mainland or the relevant Free Zone authority. This typically involves submitting required documents and paying registration fees.

Licensing and Permits: Obtain the necessary licenses and permits to operate legally. The specific licenses required will depend on your chosen activity and location.

Corporate Banking: Open a dedicated corporate bank account in the UAE to manage your company's finances.

Securing Visas: If you plan to employ foreign workers or reside in the UAE for business purposes, apply for the appropriate visas.

Nurturing Growth: Beyond the Paperwork

While completing the legalities is crucial, successful business growth requires additional steps:

Building Relationships: The UAE business community thrives on connections. Network with local businesses, government entities, and potential partners. Building trust and fostering positive relationships can pave the way for future success and open doors to valuable opportunities.

Cultural Awareness: The UAE has a rich culture with specific business etiquette. Understanding and respecting these cultural nuances is essential for fostering positive interactions with colleagues, clients, and partners.

Assembling Your Team: Recruiting a skilled and dedicated team is vital for your company's growth. Leverage the UAE's diverse talent pool to find the right individuals who share your vision and possess the skills necessary to propel your business forward.

Harvesting Your Success: Embrace the Journey

Set up a company in UAE is a rewarding journey filled with challenges and triumphs. By conducting thorough research, choosing the right legal structure, navigating the legalities efficiently, and building a strong foundation, you can transform your dream venture into a thriving business in this dynamic and opportunity-rich environment. Remember, the UAE offers a supportive ecosystem for entrepreneurs. Embrace the journey, cultivate your business with dedication, and watch your dream venture blossom into a flourishing reality.

[havenhomesuae]

Villas for Sale in Abu Dhabi

The demand for villas for sale in Abu Dhabi is increasing, particularly in gated communities within the Abu Dhabi real estate market. This property type is suitable for large families with children and individuals who prefer separate living spaces with ample land area. In most cases, villas come complete with private gardens, amenities, and parking spaces.

Abu Dhabi, the capital of the United Arab Emirates, serves as the cultural, economic, and political hub of the country. The city's favorable real estate tax policies contribute to its appeal for living and working, attracting residents, businessmen, and investors alike.

Specifications of Villas for Sale in Abu Dhabi The capital offers luxurious villas in gated communities along the coast and budget-friendly residences in various projects. Buyers can choose from a wide range of offerings in different price categories, catering to their preferences and financial capabilities.

Luxury Villas Features Luxury villas are characterized by unique architectural concepts, distinctive designs, sustainable development, and prime locations. These properties are often situated in beautiful natural surroundings with excellent amenities. In many cases, they include private beaches or provide easy access to the sea and beach clubs.

Affordable Villas Features For those seeking reasonably priced villas, considering projects in Al Reef, Al Shamkha, and Al Ghadeer is beneficial. These developments offer secluded locations, cost-effective yet high-quality real estate solutions, and comfortable living conditions.

#Villas_in_Abu_Dhabi #UAE #Abu_Dhabi

[tvgrealtors]

Dubai Investor Visa Benefits: Your Gateway to Prosperity

Dubai, with its towering skyscrapers, breathtaking landscapes, and an enticing blend of tradition and modernity, has become a magnet for investors worldwide. If you’re pondering the idea of securing a Dubai Investor Visa and contemplating the benefits it brings, you’re in the right place. In this comprehensive guide, we’ll not only explore the advantages of the Dubai Investor Visa but also introduce you to the professionals who can make your property dreams come true — TVG Realtors. We’ll delve into the Dubai real estate scene, including the best areas to buy property and how TVG Realtors can assist you in making the most of this golden opportunity.

What is a Dubai Investor Visa?

To begin our exploration, let’s demystify the concept of a Dubai Investor Visa. Simply put, it’s a visa designed to attract foreign investors to Dubai’s vibrant and ever-growing economy. This visa is granted to individuals who invest in the UAE, typically through dubai property investment, and offers an array of benefits, making it a sought-after choice for investors worldwide.

Key Benefits of a Dubai Investor Visa

1. Long-Term Residency

One of the most alluring aspects of a Dubai Investor Visa is the potential for long-term residency. Depending on your investment, you can secure residency for up to ten years. This offers stability and a sense of belonging, allowing you to fully immerse yourself in the Dubai experience.

2. Access to World-Class Education

If you have children, the Dubai Investor Visa provides access to top-notch education institutions. Dubai’s schools and universities are renowned for their quality, making it an ideal choice for families.

3. Business Opportunities

Dubai is a thriving hub for businesses. With your Investor Visa, you have the opportunity to establish or expand your business in a dynamic and tax-friendly environment.

4. Security and Safety

Dubai is known for its low crime rates, providing a safe and secure environment for residents. Your Investor Visa contributes to this sense of security.

5. Healthcare Access

As a visa holder, you and your family gain access to world-class healthcare facilities, ensuring that your well-being is well taken care of.

TVG Realtors: Your Trusted Partner

Now that you’ve glimpsed the benefits of a Dubai Investor Visa, let’s introduce you to the professionals who can make your journey seamless — TVG Realtors. With years of experience and a deep understanding of Dubai’s real estate market, they are your trusted partners in achieving your property investment goals.

The Dubai Real Estate Landscape

Dubai’s real estate scene is a fascinating mix of luxury, innovation, and variety. From iconic skyscrapers along the coastline to lush villa communities, the options are diverse. Whether you’re interested in residential or commercial properties, Dubai has it all. TVG Realtors will guide you through this vibrant landscape, helping you make informed investment decisions.

Best Areas to Buy Property in Dubai

Dubai’s neighborhoods are as diverse as its residents. But which areas are the best for property investment? Here are some key regions to consider:

1. Palm Jumeirah

This iconic man-made island offers luxury living with stunning waterfront views.

2. Downtown Dubai

Home to the Burj Khalifa and the Dubai Mall, it’s a bustling hub of culture and entertainment.

3. Dubai Marina

A waterside paradise, perfect for those seeking a modern, urban lifestyle.

4. Arabian Ranches

A family-friendly community with a suburban feel and lush green spaces.

5. Jumeirah Village Circle (JVC)

A rapidly growing community that balances affordability and quality living.

These are just a few options, and TVG Realtors can help you explore the best fit for your investment goals.

How TVG Realtors Can Help

TVG Realtors excel in providing comprehensive real estate solutions. They offer:

In-depth market insights and analysis.

Property selection tailored to your preferences.

Legal guidance and assistance throughout the buying process.

Expertise in obtaining Dubai Investor Visas.

Access to exclusive property listings and off-plan opportunities.

The Application Process

The application process for a Dubai Investor Visa is relatively straightforward. Here’s a simplified breakdown:

Choose your investment: Typically, this involves property investment.

Complete the purchase and obtain the title deed.

Apply for an Investor Visa through the Dubai Land Department.

Provide the necessary documents, including proof of investment and a clean criminal record.

Await visa approval.

Conclusion: Invest in Your Future

In conclusion, the Dubai Investor Visa offers an array of benefits that extend far beyond just property ownership. It’s your gateway to long-term residency, business opportunities, access to world-class education, and a secure future for you and your family. To make the most of this opportunity, partner with TVG Realtors, the experts in Dubai’s real estate market, and embark on a journey towards prosperity and security in one of the world’s most exciting cities. Dubai is waiting to welcome you to its vibrant, cosmopolitan community. So, why wait? Invest in your future today.

[investmentincitizenship]

CITIZENSHP BY INVESTMENT

CBI “Citizenship by Investment” programs are not a new concept rather been existing since 1984 by one of the Caribbean islands named St. Kitts & Nevis. CBI “Citizenship by Investment” program allows foreign investors and their families to obtain Alternate Citizenship and Passport(s) by Contributing to the economy of the host country.

To opt it there are several instruments such as contributions / donations in the countries approved national fund(s), investing in a Government approved real-estate option, or investing in a Government approved bond. As of today, over 100 countries in the world have some form of investment migration legislation in place, however, a few offers Citizenship by Investment (i.e., Antigua & Barbuda, Commonwealth of Dominica, Grenada, Malta, Montenegro, North Macedonia, St Kitts & Nevis, St Lucia, Türkiye, Vanuatu etc.)

The lowest possible contribution / investment starts with a one-time non-refundable contribution of USD 100,000 plus other related fees in a Government approved fund of the concerned country. The minimum contribution / investment may vary depending on the country of citizenship and the family size.

BENEFITS OF CITIZENSHIP BY INVESTMENT

In addition to letting you include your spouse, dependent (children, siblings, parents and grandparents) , these investment programs comes with multiple other benefits such as:

Global mobility allows passport holders to travel visa-free to over 145 countries and jurisdictions that include Hong Kong, Singapore, United Kingdom, and the Schengen Area (also Russia and China depending on the country offering Citizenship by Investment).

Citizenship by Investment programs are considered to be an Insurance policy or a Plan B for many individuals from underdeveloped countries, these programs help them avoid any political unrest and for the security of their loved ones and their investments. A second passport is the ultimate contingency plan against the risk of political or economic turbulence in one’s home country.

Holding a single Citizenship can curtail an individual’s ability to conduct business on a global scale, with dual nationality, individuals can enjoy Access to international business hubs, and it can assist them to grow their business on a global stage.

Most of the Caribbean countries offering Citizenship by Investment are home to the best United States offshore universities (Grenada for instance is home to St George’s University which is one of the finest medical, veterinary, and arts and sciences schools, and graduates train in some of the top hospitals in the United States and the United Kingdom and is internationally accredited). Having a Second Passport means Greater opportunities for better education for you, your spouse and or the kids.

Citizenship by Investment provides countless opportunities to extend your business in different jurisdictions, and it provides a better-quality life, with complete assets protection, access to healthcare services, luxury living locations, diversified culture, and much more.

Caribbean countries offering CBI programs are considered tax havens. There are ZERO taxes for inheritance, gifts, wealth, and no capital gains. There are also no taxes on income generated from earnings abroad. ​

Holding a single Citizenship limits you in diversifying your investment portfolio, opting for dual Citizenship enables you to invest in different jurisdictions, easily open a bank account, and ease of business.

About the Author

Imran Mirani, is an Independent Investment Advisor with over 14 years of RCBI “Residency / Citizenship by Investment” and Business Migration experience, he is a member of the IMC “Investment Migration Council”. Over the time he has been handling the portfolio of (ultra) high net-worth clients globally and have helped hundreds optimize their their residency and citizenship with strategic investment.

Mobile Phone: +971 50 288 0795 UAE | +92 322 824 5008 E-mail: mirani@investmenttoday.net — www.investmenttoday.net

[elevateaccounting]

Elevate: Your Trusted Market Research Company in Dubai for Comprehensive Business Feasibility Studies

When it comes to launching a successful business or evaluating the viability of a new project, conducting a thorough feasibility study is of utmost importance. This evaluation provides crucial insights into the practicality and profitability of your venture, enabling you to make informed decisions. Elevate stands as a leading market research company in Dubai, specializing in providing comprehensive feasibility studies. With a focus on calculating net present value (NPV) and ensuring clarity throughout the process, Elevate is your trusted partner in transforming business concepts into successful realities.

 The Importance of a Feasibility Study:

A feasibility study serves as the foundation upon which your project plan resides. By evaluating the strengths, weaknesses, opportunities, and threats of an existing business or a future venture, it enables you to assess the cost versus value creation of your proposed project. Through meticulous analysis of financial and operational aspects, market research, and considerations of legal and tax obligations, a feasibility study helps determine the return on investment potential.

 Comprehensive Components of a Feasibility Study:

 ●      Executive Summary: A concise overview that highlights the key findings and recommendations of the feasibility study.

●      Description of the Product/Service: A detailed explanation of the offerings, including its unique features and value proposition.

●      Technology Considerations: Assessment of the technological requirements and infrastructure needed for the successful implementation of the project.

●      Marketing Strategy: Market research to identify the target audience, competition analysis, and effective marketing tactics for the project's success.

●      Human Resource Planning: Evaluation of the manpower requirements, organizational structure, and skill sets needed to operate and manage the business effectively.

●      Project Schedule: A well-defined timeline outlining the critical milestones and key activities from project development to implementation.

●      Financial Projections: Comprehensive analysis of the financial aspects, including projected income statements, cash flow forecasts, revenue streams, and pricing strategies.

●      Findings & Recommendations: Summarizing the results of the feasibility study, presenting key findings, and providing actionable recommendations for the project's success.

 Steps Involved in a Feasibility Study:

 ●      Conducting a Preliminary Analysis: Outlining the project plan, understanding the concept, and assessing market viability and target customers.

●      Preparing a Projected Income Statement: Analyzing financial expenses, working backward to determine funding requirements, and assessing the project's financial feasibility.

●      Conducting Market Survey: Identifying the market area, target audience, and potential market share through thorough market research to gauge the project's viability.

●      Preparing Business & Operations Plan: Drafting a cohesive plan that incorporates technical, financial, technological, human resources, and legal factors aligned with the market research and income forecast.

●      Reviewing & Analyzing the Data: Re-evaluating the projected income statement, assessing the realism of assets, liabilities, expenses, and income to gain a comprehensive view of the project's viability.

●      Making a Go or No-Go Decision: Based on the cumulative findings and analysis, making an informed decision on whether the project should proceed to implementation.

 Elevate: Your Feasibility Study Consultant in Dubai, UAE

Elevate emerges as a distinguished market research company in Dubai, UAE, offering comprehensive feasibility study services to bring your business concepts to fruition. With a team of experienced professionals and a customer-centric approach, Elevate ensures that your project is thoroughly evaluated for success. The company's expertise includes exit strategies, cash flow forecasts, marketing plans, supply chain analysis, business operations, forecasting, HR planning, organizational structures, visions and missions, growth plans, route-to-market strategies, pricing, and overall viability.

[aspirationworxx]

5 Things To Know About Corporate Tax UAEUAE corporate tax defined

5 Things To Know About Corporate Tax UAEUAE corporate tax defined

Corporate tax in UAE is a federal tax imposed on the profits earned by companies operating in the country. The tax is currently set at a rate of 5% on the taxable profits of companies, with some exceptions for certain industries and government-owned companies.

Companies that are required to pay corporate tax in UAE include those that are tax residents in the country, meaning they are either incorporated in UAE or have their management and control based in the country. Non-resident companies may also be subject to tax if they have a permanent establishment in the country.

The taxable profits of a company are calculated by deducting allowable expenses and losses from its gross income. The allowable expenses include items such as salaries, rent, and depreciation, while the allowable losses may include bad debts and inventory write-downs.

Companies that are liable to pay corporate tax in UAE must register for tax, obtain a Tax Registration Number (TRN), and file their tax returns annually. Failure to comply with the tax regulations can result in penalties and fines.

It is important for companies operating in UAE to seek professional advice to ensure compliance with tax laws and to properly manage their tax liabilities.

Registration for UAE corporate tax

Companies that are required to register for corporate tax in UAE should follow these steps:

1. Obtain a Tax Registration Number (TRN): Companies that are liable to pay corporate tax in UAE must first obtain a TRN. The application can be submitted through the Federal Tax Authority (FTA) website, and the TRN is typically issued within a few days.

2. Register for tax: Once the TRN is obtained, the company must register for tax with the FTA. The registration process can be completed online through the FTA's e-services portal.

3. Maintain records: Companies must maintain records of their financial transactions and tax-related documents for a period of at least 5 years. The records should be accurate, complete, and in compliance with the tax regulations in UAE.

4. Submit tax returns: Companies must submit their tax returns annually through the FTA's e-services portal. The tax returns should be filed within 4 months from the end of the financial year.

5. Pay tax: Companies must pay their corporate tax liabilities within 30 days from the date of the tax assessment. The payment can be made online through the FTA's e-services portal or through other designated channels.

It is important to note that failure to register for corporate tax or comply with the tax regulations in UAE can result in penalties and fines. Companies should seek professional advice to ensure compliance with the tax laws in UAE.

5 Things To Know About Corporate Tax UAE

1. Tax system: UAE has a federal tax system, where each Emirate is responsible for implementing its own taxation policies. However, in 2017, the UAE introduced a federal corporate tax of 5% on the profits of all companies operating in the country, with some exceptions.

2. Exceptions: The federal corporate tax in UAE does not apply to companies engaged in certain activities such as oil and gas production, and companies that are at least 51% owned by the federal or local government.

3. Tax residency: In order to determine the tax liability of a company in UAE, the concept of tax residency is used. A company is considered tax resident in UAE if it has been incorporated in the country or if its management and control are based in the country.

4. Tax returns: Companies in UAE are required to file their tax returns annually, even if they have not generated any profits in the country. The tax returns should be filed within 4 months from the end of the financial year.

5. Penalties: Failure to comply with the tax regulations in UAE can result in penalties and fines. For example, failure to file tax returns on time can result in a penalty of AED 1,000 for the first month, followed by AED 100 for each subsequent day of delay. Additionally, intentional tax evasion can result in a penalty of up to AED 50,000 and imprisonment for up to five years.

Faq'sQ: Which companies are exempt from corporate tax in UAE?

A: Companies engaged in certain activities such as oil and gas production, and companies that are at least 51% owned by the federal or local government are exempt from corporate tax in UAE.

Q: How is a corporate tax in UAE calculated?

A: Corporate tax in UAE is calculated on the taxable profits of a company, which is determined by deducting allowable expenses and losses from its gross income. The tax rate is currently set at 5%.

Q: When are corporate tax returns due in UAE?

A: Corporate tax returns in UAE must be filed annually within 4 months from the end of the financial year.

Q: What are the penalties for non-compliance with corporate tax regulations in UAE?

A: Non-compliance with corporate tax regulations in UAE can result in penalties and fines. For example, failure to file tax returns on time can result in a penalty of AED 1,000 for the first month, followed by AED 100 for each subsequent day of delay. Intentional tax evasion can result in a penalty of up to AED 50,000 and imprisonment for up to five years.

Q: Can companies offset losses against their tax liability in UAE?

A: Yes, companies in UAE can offset their losses against their taxable profits for up to 5 years, subject to certain conditions and limitations.

[businessincorporationzoneuae]

Best Home Based Business Ideas in Dubai

For company investors looking to advance, Dubai makes sense. Dubai has grown to be one of the most significant places for business establishment. Due to its diversified population and booming economy, Dubai has great opportunities for large investors.

One benefit of setting up a business in Dubai is the tax system, which promotes growth among businesses. It is now easier to start Dubai mainland business thanks to the government of Dubai's relaxation of requirements.

The economy of the Middle East primarily rely on Dubai. Dubai is a growing market leader due to its robust financial sector, lack of taxes, and well-connected transportation system. Dubai's growth in the number of home-based enterprises operating there and the requirement for home-based business licences

Creating Art and Crafts: In Abu Dhabi and Dubai, the demand for handcrafted goods has skyrocketed in recent years. Dubai's small business community is growing when it comes to starting an arts and crafts business. A great approach for women to establish a home-based business is to sell their own goods. You can sell things like paintings, decoupage bottles, tissue boxes, picture frames, woodwork, pottery, tissue holders, and so on.

Real Estate: There are many immigrant workers with families in Dubai, which has become one of the top international investment destinations. So, opening a real estate agency will be a wise decision.

Online Teaching: It  is one of the most profitable concepts for a home-based online company. A room is all you need to conduct online education. By building a website and sharing knowledge on it, you can start your own business in Dubai.

Freelance Service Provider: Freelancing is one of the simplest, quickest, and most affordable ways to start a home-based business. if you are informed about it and possess related expertise. Now that the rules have changed, it is possible for independent contractors to live and work in Dubai, but you must first apply for a freelancer residence.

Consultancy: The consulting sector represents one of the largest markets in the UAE. Dependable consulting firms have grown significantly. Although you don't need any formal training to operate an online consulting firm, having the appropriate expertise will be a huge asset.

Digital Marketing Agency: Online marketing has gained popularity recently as a result of Covid. With little initial investment, you can start an online marketing and website creation business from home. Web design companies are now needed by small and medium-sized organizations. Many tiny and newly established businesses place a high priority on online marketing and business setup. Thus, opening a digital marketing agency in Dubai is the best option.

The Business Incorporation Zone can help you launch a home-based business in the UAE. Our qualified experts will assist you to start Dubai mainland business and license acquisition. They will give you guidance at every turn because they are knowledgeable and skilled. To find out more, call us right away. We are pleased to assist you!

[simplysolvedagency]

Federal Corporate Tax in UAE – Published Official CT Legislation

In the wake of the public announcement regarding the benefits of Corporate Tax in UAE (CT) and the frequently asked questions (FAQs) on January 31, 2022, as well as the publication of the Public Consultation Document in April 2022, the Federal Decree-Law no. 47 of 2022 regarding the Taxation of Corporations and Businesses Corporate Tax Law has been released on December 9, 2022.

The UAE Corporate Tax Law is Federal Decree-Law No. 47 of 2022, issued on October 3, 2022, and becomes effective 15 days following its announcement in the Official Gazette. The Corporate Tax law applies to the profits of businesses for fiscal years that begin on or after June 1, 2023.

This article gives brief highlights of the new rules, which were it was announced by The Ministry of Finance (“MoF”) and the Federal Tax Authority (“FTA”). It is important to note that the new rules align with the Public Consultation Document.

More details are awaiting Cabinet and Tax Authority Decisions, and further guidelines are expected to be issued to finalize all Corporate Tax Legislation in areas such as the Free Zone and Director compensation guidelines. Following the publication of Corporate Tax Legislation, the MoF has confirmed that its introduction is scheduled for June 2023.

Scope of Corporate Tax in UAE

Corporate Tax in UAE applies to the adjusted net profit of the worldwide accounting of the company.

The Corporate Tax in UAE Regime has two rates of different types:

A tax-free rate applies to tax-deductible earnings up to a     certain amount that is to be set in a Cabinet Decision (the FAQs relate to the threshold of AED 375,000)

The tax standard for the statutory rate is 9 percent.

Confirming the minimal tax burden of just 9% aims to ensure that the UAE has a competitive tax rate worldwide.

The Corporate Tax Law is silent in Article 3 on aspects governing the global minimum of 15% tax rate. That applies to MNEs that fall within the definition of Pillar Two, which is part of BEPS Pillar 2. OECD BEPS project and applies to multinational corporations (MNCs) that have consolidated worldwide revenues exceeding EUR 750 million (c. the equivalent of AED 3.15 billion) at any time in two of the last four years. The FAQs address the possibility of adopting within the UAE of BEPS Pillar 2.

Individuals:

Individuals are affected by corporate taxation if they engage in business activities that are in line with an overall VAT concept for business activities. A Cabinet decision is anticipated regarding how to apply Corporate Tax in UAE to natural people. That means that Corporate Tax does not apply to a person’s salary and other earnings earned through employment. However, those earning income through part of a business venture would be covered by Corporate Tax in UAE.

Free Zones

A specific and defined regime (subject to a further Cabinet decision) is provided for all businesses in UAE-free zones. These zones:

Maintain sufficient substance and

Earn qualifying income.

What is a sufficient income will be defined by a Cabinet decision. According to the Public Consultation Document, this could refer to the requirement not to do Business with the mainland UAE. It is stated that Free Zone companies can choose to be taxed as a corporation at a rate of 9 percent.

A wide range of UAE rules for sourcing is in force and essential for businesses in the Free zone who want to satisfy the requirements of substance.

Withholding Tax

There will be no withholding tax on specific categories of UAE State Sourced income produced by a non-resident. In turn, foreign investors who don’t carry any businesses in the UAE, in general, will not be taxed within the UAE.

Foreign Entities

Foreign entities can be residents of the UAE if they are operated and controlled in the UAE. Foreign entities who aren’t considered to be residents in the UAE, however, may have a permanent establishment in the UAE. The Definitions of Permanent Establishment have been clarified as fixed PE and the term “agency PE. Further details on PEs will be subject to a Ministerial decision.

Exempt Entities

The UAE Corporate Tax Law retains the exemption for Investment Managers exempted from Public Consultation Documents. Rules apply to Partnerships, and Family Foundations can also use to increase tax transparency.

Government entities and government-controlled entities, as well as qualifying public benefit entities and investment funds, will be exempt from the UAE Corporate Tax Law. Extractive companies (upstream oil and gas companies) are exempt if they earn revenue from their extractive businesses.

Banking operations are affected by Corporate Tax in UAE (unless an institution falls located in a Free Zone and is eligible for the zero-interest rate).

Implementation Date

Article 69 of the UAE Corporate Tax Law provides that the Law will apply to Tax Periods that begin on or after June 1, 2023.

Businesses with a financial year that begins on January 1 are subject to CIT starting on January 1, 2024.

Financial records & Requirement to Maintain Audited Statements

Taxpayers must create and keep financial statements backed by all records and documents to support Corporate tax returns. The forms must be kept for a minimum of seven years.

This obligation will apply to every UAE entity (unless included in the Corporate Tax Group).

Every entity must create its financial statements. However, only some entities may be audited for financial information. A subsequent Cabinet Decision(s) will define the types of tax-paying individuals that must keep certified or audited accounting statements.

Small Business Tax Relief

Reliefs for small-scale businesses with revenues or gross income below the threshold of a specific amount are made. Qualifying businesses will be considered to have no tax-deductible income and must comply with a simplified set of requirements.

The threshold is determined by the revenue, not the earnings or taxable income. That is likely to be confirmed by an upcoming Cabinet Decision.

Deductible / Non-Deductible Expenses

The expenses incurred solely and exclusively for business reasons (and which are not to be capitalized) can be deducted.

Deductions are not allowed when expenses are incurred to earn tax-free income. In the case of any expenditure with a mixed purpose, removal is not permitted. Interest expense is deductible subject to a limit of 30% of EBITDA.

Financial assistance rules are in effect and prevent companies from getting funding to pay dividends or distribute profits.

Entertainment costs are set at 50 percent.

Donations not tax-deductible include those made to a non-Qualifying Public Benefit Entity and bribes, fines, and dividends.

Notably, the amounts withdrawn from the Business by any natural person who is a tax-deductible individual are not deductible.

Exempt Income & Relief

The following income categories will be exempted from Corporate Tax in UAE (Article 22 of the UAE Corporate Tax Law):

Capital Gains and Dividends, and other distributions of     profits from a Resident

Capital Gains such as dividends, capital gains, and other     distributions from Qualifying shareholding in a legal entity of a foreign     country that is subject to a hold duration of 12 months, the minimum     contribution of 5 percent, and at the minimum, subject to 9 percent CIT     for the source country. From which they originate.

The income from a foreign PE is subject to certain conditions     and the option to apply an exemption (rather than credit)

Earnings of an individual who is not a resident of the     country come from operating ships or aircraft involved in international     transport.

These transactions can be subjected to a specific reduction, i.e., effectively an exemption from taxation:

Restructurings and intragroup transactions that qualify as     qualifying Entities will be eligible when they hold 75 percent common     ownership.

Restructuring relief for businesses under specific conditions.

Transfer Pricing

Related party’s transactions should be carried out under the arm’s-length principle as outlined in Section 34 under the UAE Corporate Tax Law. In addition, it states that the five conventional OECD Transfer Pricing strategies are suitable to help support the arm’s length character of arrangements with related parties and allows the use of alternative methods when needed.

Article 34 provides that when a tax authority adjusts to a foreign country that affects the tax structure of a UAE entity, the application must be submitted to the FTA to request a similar adjustment that allows the UAE firm to be exempt against double taxation. Any adjustments that result from domestic transactions do not require an application.

The requirements for documentation on transfer pricing are covered in Article 55. UAE businesses will have to follow the rules for transfer pricing and the documentation requirements set by OECD Transfer Price Guidelines, which lead to three-tier reports, i.e., master file, local file, and country-by-country reporting. A reference to a controlled transaction disclosure form is provided (details of which are still to be determined).

It should be noted that no thresholds for the materiality of the product are provided. Separate legislation will be released later. Advance pricing plans will become made available via the normal clarification process currently in place.

UAE has introduced provisions requiring the payment and benefits given to persons connected to be tax-deductible in their market value. The same rules are followed in Article 34 of the UAE CIT Law.

Administration & Enforcement

The MoF is the sole authority for purposes of multilateral     bilateral or multilateral agreements as well as for the exchange of     information between countries.

The FTA is accountable for the corporate tax system’s     administration, collection, and application. Fines and penalties are governed     under a law known as the Tax Procedures Law.

Companies will require a VAT Registration UAE from     the FTA.

Companies that are required to comply with UAE Corporate Tax     are required to submit the Corporate Tax return online for every financial     year within nine months from the date of the end of that Financial Period.     (A financial period generally refers to any financial period that is 12     months long)

Free Zone companies that are subject to CIT at 0 percent CIT     must also submit a CT Return.

Foreign Tax Credits

Tax credits for foreign taxation are allowed for Corporate Tax in UAE due as per the Public Consultation Document. Businesses can claim less corporate tax owing and the sum of tax withholding effectively removed. There is no way to carry forward. There will be no credit for taxes paid to the individual Emirate.

Tax Grouping

Fiscal unity or Tax Group: UAE companies can form a “fiscal unity” or Tax Group to serve UAE purposes. The main requirement for a Tax Group is to comply with the (in)direct sharing requirement, which is 95 percent. Free zone entities subject to zero percent cannot join the Tax Group. Additionally, the parent (which may be intermediate) must be a UAE company.

Losses

By article 37 of the UAE Corporate Tax Law, losses can be carried forward for up 75 percent of taxable income. Losses can be transferred between members of the same group of corporations if those entities have 75 percent direct or indirectly owned. Losses cannot be transferred from exempt individuals or entities that are free zone. Loss offsets are also subject to the cap of 75 for businesses that roll forward losses.

Tax-deductible losses may be lost in the event of an ownership change (50 percent or more) if the new owner runs the same or similar Business. The criteria to be considered for this have been established.

Anti-Abuse

UAE will adopt an Anti-Abuse General Rule, also known as “GAAR.” The GAAR applies to cases where one of the primary reasons for a transaction is to gain an income tax benefit for the corporation that is incompatible with the purpose or intent of the UAE Corporate Tax Law.

The FTA will deal with and alter or counteract the transaction. The GAAR only applies to agreements or transactions entered after the UAE Corporate Tax Law is published in the UAE Official Gazette on October 10, 2022, in issue #737.

Summary

With the publication of the UAE Corporate Tax Law and confirmation of a 9% tax rate and a 9% rate, UAE has established a globally competitive rate for Corporate Tax in UAE and confirmed its intention to implement Corporate Tax in June 2023.

It is expected that additional information to be released over the coming months to be fleshed out and provide more excellent knowledge of its implementation. Nevertheless, several key elements are already confirmed, including introducing compulsory transfer pricing rules.

[accruonuae]

Introduction to corporate Tax

Introduction to corporate Tax

1.Introduction 

The United Arab Emirates (UAE) published Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses on December 9, 2022 (hence referred to as the “Corporate Tax Law”).

The Corporate Tax Law, which is applicable to fiscal years beginning on or after 1 June 2023, establishes the legal framework for the introduction and operation of a Federal Corporate Tax (the “Corporate Tax”) in the UAE.

The UAE wants to speed up its development and transformation by introducing the Corporate Tax in order to help it accomplish its strategic goals. Together with its wide network of double tax treaties, the UAE will solidify its position as a top business and investment location by guaranteeing a competitive corporate tax environment that complies with international norms.

The UAE Corporate Tax policy is based on worldwide best practises and encompasses concepts that are widely recognised and accepted due to the UAE’s status as a hub for international commerce and the global financial system. This guarantees that the corporate tax system in the UAE is transparent in its ramifications and is easily understandable.

2.What is Corporate Tax?

Corporate Tax is a form of direct tax levied on the net income of corporations and other businesses.

Corporate Tax is sometimes also referred to as “Corporate Income Tax” or “Business Profits Tax” in other jurisdictions.

3.Who is subject to Corporate Tax?

Broadly, Corporate Tax applies to the following “Taxable Persons”:

            ●UAE companies and other juridical persons that are incorporated or effectively managed and controlled in the UAE;

            ●Natural persons (individuals) who conduct a Business or Business Activity in the UAE as specified in a Cabinet Decision to be issued in due course; and

●Non-resident juridical persons (foreign legal entities) that have a Permanent Establishment in the UAE (which is explained under Section 8).

Juridical persons established in a UAE Free Zone are also within the scope of Corporate Tax as “Taxable Persons” and will need to comply with the requirements set out in the Corporate Tax Law. However, a Free Zone Person that meets the conditions to be considered a Qualifying Free Zone Person can benefit from a Corporate Tax rate of 0% on their Qualifying Income (the conditions are included in Section 14).

Non-resident persons that do not have a Permanent Establishment in the UAE or that earn UAE sourced income that is not related to their Permanent Establishment may be subject to Withholding Tax (at the rate of 0%). Withholding tax is a form of Corporate Tax collected at source by the payer on behalf of the recipient of the income. Withholding taxes exist in many tax systems and typically apply to the cross-border payment of dividends, interest, royalties and other types of income.

[tbaassociates]

Learn Top Exciting And Hidden Facts About The How To Register Holding Company

Creating a business is not simple. An offshore or international business company (IBC) has been established outside of a person's country of residence. Offshore business formations are typically done in nations with minimal or no taxes. Because of its many advantages, setting up an offshore corporation is becoming more and more popular today. Are you searching or willing to explore the real benefits and advantages of the set up offshore IBC or to know the reasons before you register holding company? If Yes. This article or writing piece is the ultimate choice or place for folks or people who want to augment their understanding of the concept and idea of set up offshore IBC or register a holding company.

Register Holding Company

The main purpose of setting up an offshore corporation is to reduce the company's tax liabilities. The UAE is one of many locations with low taxes. For instance, the UAE just enacted the VAT, which became effective in January 2018. This, however, only applies to onshore businesses. In addition to offering offshore banking services, forming a company in the offshore areas of the UAE gives your corporation and its stakeholder's exclusive control over all transactions. Along with tax advantages, the registration of an offshore company in the UAE ensures wealth secrecy.

Offshore businesses are not required to disclose their financials or the names of their directors and shareholders. Unless suspicious activity is identified, offshore financial jurisdictions will not provide any information to a third party. UAE is one of the nations that, in any case, refuses to sign the convention of disclosure. The ability to open a multi-currency bank account in any local bank and make use of first-rate banking services for your company is another advantage of setting up an offshore company. The reliable and trustworthy service provider will help you arrange a meeting with several bank executives, who will go through their policies, benefits, and other details with you so you can select the best bank with which to create a bank account in the particular place to claim all the benefits.

The cost of registering an offshore corporation is relatively low. There are several jurisdictions where capital is not required for registration like UAE neither specifies a dollar number nor offers a standard share capital. An offshore business is free to deliver items to clients and accept orders directly from buyers. The ability to acquire and distribute products is the main advantage of owning an offshore company. The difference between the buying price and the sale price will result in a sizable profit for you. This money may be invested in further businesses or real estate. By way of stocks, bonds, and real estate, offshore companies have stakes in other corporations. These investments may be subject to taxation in the country in which they are made. But some nations provide tax-free bonds. Tax rates are extremely low if an offshore jurisdiction taxes investment gains. Go ahead! And claim the top hidden benefits and advantages of the set up offshore IBC and registered holding company.

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3 Reasons why Startup Business in Dubai or UAE is best choice

You've decided that expanding your Startup Business in Dubai and the UAE is a good idea to expand or perhaps you're contemplating the possibility of Startup business in Abudhabi. Congratulations! You've made the best choice. The reasons are numerous. Accessibility, ease of use, simplified and easy-to-understand visa procedure reduced formalities, the perfect environment to develop your ideas and concepts an open and friendly society top technology infrastructure, an open and supportive government and visionary leadership - all the elements needed for an effective business are strategically put in this area.

Since its inception almost fifty years ago, this nation has transformed rapidly from a country that was once dependent on pearls and fishing, to an economic and financial engine. The country has an ideal geographical location, which allows nearly two-thirds of the world's population reachable within a six-hour flight. Affordable roads, air and maritime connections, high subsidy as well as a thriving work environment the presence of some of the world's top talent makes the UAE an attractive destination for companies seeking an ideal base to run the expansion of their Middle East and North African operations as well as expanding further.

However, this isn't all. The UAE is host to a range of economic and cultural diversity It has an efficient and stable political system that allows capital flows dependent on strong income streams, and the tax climate is favorable and the trade laws are favorable. The UAE is a perfect example of how perseverance and dedication can transform a small nation into a commercial, commercial and tourist capital for the global population to reside, work and travel.

We summarize the eight reasons that it is that UAE is a well-controlled and secure economic system and why it is your next destination for business.

3 Reasons to Explain

1. The fastest to recover from Covid-19:

A leadership foundation's foundation will be evaluated by the way it reacts to the issues. One of the most recent and the most significant issues facing the world today Covid-19, a pandemic that has ravaged the world, has been handled in such a way with Dubai which it's currently on the way towards being one of the fastest regions recovering from its loss. This is an excellent reason to believe in the economic climate that the UAE has created.

2. Support for SMEs is never-ending. SMEs:

In a time when the majority of companies worldwide were shut down because of the Covid-19 pandemic, the leadership of Dubai has offered exemplary assistance to SMEs and new businesses. This has resulted in an increase in trade as well as the development of many creative businesses to deal with the epidemic.

3. Geographical accessibility:

Dubai is located in the center of the UAE and is located in the Arabian Gulf, bordered by Oman and Saudi Arabia. The country is located between the Gulf countries and the Indian subcontinent and in the Commonwealth of Independent States (CIS) and the African region; Dubai enjoys a tactical position that permits it to provide unlimited opportunities across a broad range of industries.