n our professional opinion, a Dubai Offshore Company is an excellent corporate structure because:
- A Dubai Offshore Company is tax-free;
- A Dubai Offshore Company portrays a good image to your Clients and suppliers;
- There is no public register of shareholders and directors;
- A Dubai Offshore Company is quick to incorporate.
However, our Clients should note the following:
- A Dubai Offshore Company is not permitted to trade in the United Arab Emirates (UAE);
- A Dubai Offshore Company cannot rent local premises in the UAE;
- A Dubai Offshore Company must submit audited financial statements annually to the Dubai Government.
Dubai Company Formation? Yes, thanks to the new EU directive takes effect Dubai is becoming the better place incorporate your offshore company.
Dubai looks set to reap the rewards of a recent EU ruling under which banks are now forced to reveal information to tax authorities.
The EU Savings Directive, which came into effect on July 1, obliges financial institutions in all EU member states to either disclose tax and bank information to the relevant tax authority, or charge clients a hefty withholding tax.
Though the new directives will specifically affect EU residents, a number of banks in ‘tax havens’ have also agreed to exchange customer information, including Jersey, Guernsey, the Isle of Man, the British Virgin Islands, the Cayman Islands, Switzerland, Liechtenstein, Monaco and San Marino.
The reputation of discretion for some of these countries is being eroded. Since July 1, in order to keep details of their wealth private, bank customers now have the option of paying a withholding tax which will be levied directly in the country in which their savings are held. This will be charged at a rate of 15 per cent for the first three years, 20 per cent for the following three years, and 35 per cent from 2011 onwards.
Dubai has long enjoyed a reputation as a secure, tax-free jurisdiction for international banking and company incorporation. With this latest development from Europe, Dubai company registration and corporate and personal banking options are becoming more popular with international businesses and high net worth individuals.
Since Dubai is neither a signatory to this directive, nor agreeing to cooperate with the Organisation of Economic Cooperation and Development (OECD), it looks set to gain even further.