UAE Offshore Investments

  Overview

  • Offshore Investments in Ras al khaimah – UAE
  • Political and economic stability
  • Main activities of UAE OFFSHORE COMPANY
  • Fiscal & Regulatory benefits of UAE OFFSHORE COMPANY
  • Main features of UAE OFFSHORE COMPANY
  • Europe, India & Other Countries
  • UAE Offshore and Properties
  • Advantages of UAE offshore
  • List of Double Taxation Avoidance Agreements

  OFFSHORE INVESTMENTS IN RAS AL KHAIMAH – UAE

Expanding and shifting your business activity through a UAE Offshore Company set up. The International Business Companies (IBC) Registry allows foreign investors to register offshore companies as RAK Offshore, a division of RAK Investment Authority (RAKIA) without the need to establish a physical presence in the UAE.
Companies are usually incorporated within 24 hours. Any non-resident individual or corporate entity can register a company. Many jurisdictions are considered only as tax havens. The United Arab Emirates is a ‘real’ country with a ‘real economy’ with a population of approximately more than 4 million. It has an established history of international trade, finance and business, and today it is one of the fastest growing countries in the world with one of the highest standards of living.The choice of a suitable jurisdiction is an important decision and requires careful considerations.

  Political and economic stability of the jurisdiction

* The availability of a modern and flexible legislative framework
* Simple incorporation and filing requirements
* The availability of Double Taxation Avoidance Agreement (DTAA)
* State of the art banking system
* State of the art telecommunication facilities

Uniqueness
UAE is not a dependent or ‘overseas’ territory of another country. Pressure has been put on traditional low tax jurisdictions by the Commission of the European Community (EU) in conjunction with the Organization for Economic Cooperation and Development (OECD). The UK parliament has converted British Dependent Territories to British ‘Overseas’ Territories (in 1998). The UK government may apply greater control over its tax haven progeny (ie Bermuda, BVI, Caymans, Gibraltar, Turks & Caicos)

UAE has Double Taxation Avoidance Agreements (DTAA) with a number of countries
Double taxation agreements prevent individuals and corporations from being susceptible to paying tax on the same item during the same time period. These agreements determine which of the two states concerned should levy tax in a particular situation: Austria, Belarus, Belgium, Canada, China, Czech Rep., Egypt, Finland, France, Germany, India, Indonesia, Italy, Lebanon, Malaysia, Malta, Morocco, New Zealand, Pakistan, Poland, Romania, Singapore, Sudan, Thailand, Tunisia, Turkey and Ukraine.

UAE is not a member of the Organization for Economic Cooperation and Development (OECD)
No foreign exchange of information
UAE is not on the OECD ‘blacklist’ of tax havens (nor the FATF blacklist)
UAE is not a member of the EU, and is not subject to EU regulation

  Main activities of UAE OFFSHORE   COMPANY

Activities held Outside UAE

• General Trading
• Consulting and Advisory Services
• Holding Company (Buy/Hold/Sell stakes of companies)
• Investments Company
• Property Owning
• International services
• Professional Services
• Shipping and ship management companies
• Commission Agents Company – Intermediary Brokers (IB’s)

Activities held inside UAE

• Holding Assets
• Invoicing
• Holding Bank Account
• Intellectual Property
• Property Owning (Freehold Areas)

  Fiscal & Regulatory benefits of UAE   OFFSHORE COMPANY

• 100% income tax exemption
• 100% corporate tax exemption
• 100% capital and profit repatriation
• 100% ownership in Free Zones
• No capital gains tax
• No Value-added tax
• No Withholding tax
• Proximity to entire Gulf and global markets

 UAE Offshore and Properties – Real Estate

Many speculators, investors and end users prefer buying, selling, managing (especially UAE) properties through a UAE Offshore company – Called corporate ownership rather than individual ownership.

Advantages of using a UAE offshore company for buying and selling Properties:

Set up time: 24hours.

Tax and duty exemption
100% foreign ownership permitted and 100% tax and duty exemption.
UAE Double Taxation Avoidance Agreement (DTAA).

Corporate Bank Account
Bank account opening with UAE prime banks, multi-currency, with full internet access, making it easier for international money transfers.

Physical Office not required
No physical office in the UAE required with the Offshore License. You will use the physical address of the registered agent, saving you a lot operational costs in terms of renting offices.

Asset Protection in Case of Death
In case of death, corporate ownership of assets (such as properties) is transferred via simple company share transfer to new beneficial owner, saving a lot of legal inheritance troubles and costs.

Confidentiality
Corporate ownership and business ensures beneficial owner’s confidentiality.

Joint Investments
Best choice in case of joint investments and joint business owners.

List of Double Taxation Avoidance Agreements:

No

Country

Execution

No

Country

Execution

1

Egypt

26/3/1995

25

Turkmenistan

24/11/1999

2

Algeria

28/11/2001

26

Armenia

29/12/2004

3

Yemen

25/8/2001

27

Tajikistan

29/01/2000

4

Tunisia

24/2/1997

28

Mongolia

29/11/2002

5

Morocco

26/9/1999

29

Azerbaijan

30/04/2007

6

Sudan

28/11/2001

30

Austria

27/04/2004

7

Syria

11/6/2000

31

Poland

29/01/1994

8

Lebanon

25/10/1998

32

Germany

18/03/1996

9

Mozambique

04/05/2004

33

Finland

24/02/1997

10

Pakistan

29/01/1994

34

Italy

20/11/1995

11

India
India (Protocol)

21/08/1993
04/09/2007

35

Czech

26/06/1997

12

Sri lanka

04/05/2004

36

France

15/11/1989

13

Philippine

29/12/2004

37

Belgium

26/06/1997

14

Korea

04/05/2004

38

Romania

09/01/1996

15

Singapore

17/06/1996

39

Turkey

29/01/1994

16

Indonesia

17/06/1996

40

Luxemburg

07/05/2006

17

Thailand

12/11/2000

41

Spain

13/08/2006

18

Malaysia

17/06/1996

42

Malta

13/08/2006

19

China

05/06/1994

43

Bosnia & Herzegovina

30/04/2007

20

New Zealand

04/05/2004

44

Seychelles

06/02/2007

21

Ukraine

28/02/2004

45

Mauritius

20/06/2007

22

Belarus

02/01/2001

46

Canada

07/01/2004

23

Holland

29/11/2007

47

Uzbekistan

26/10/2007

24

Bulgaria

22/01/2008

 

  Advantages of UAE offshore over other   Offshore Jurisdictions

Very costly and time consuming mandatory legalization and notarization of Documents by UAE consulate and Ministry of Foreign affairs from other offshore jurisdiction such as BVI, Panama, Cayman Islands etc., can be avoided.

Double Tax Avoidance Agreement (DTAA)
Since the UAE has no taxes; accordingly double taxation prevention treaties are aimed at making the UAE a more attractive territory in which to operate. Generally, under these treaties profits generated from shares, dividends, interest, royalties and fees are taxable only in the state where the income is earned according to mutually agreed terms and conditions.

• To protect UAE investors from direct or indirect double taxation.
• Investments to be taxed in the country of residence other than that country of source.
• The U.A.E signed several bilateral agreements for avoidance and prevention of double taxation with most of its major trade partners.

ADVANTAGES
• Reduced Dividends Tax
• Exempting Deposits from Tax
• Exempting Capital gains from Tax
• Exempting national air carriers and shipping companies working in international traffic from taxes and fees
• Exempting Government Sector Establishments from Taxes on Dividends, Interest and Capital Gains
• The Significance of the Tax Agreements to the Foreign Investor and the Investment funds
• Impact of the Tax Agreements on attracting Foreign Investments and capital Movements

  Contact Us! If you are interested

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