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