Presentation Transcript

1. UAE: A Different concept of international jurisdiction Globalserve Moscow Seminar September 2013 ByPhani Schiza Antoniou

2. UAE- SOME FACTS

   UAE OR ‘The Emirates ‘ Situated in the southeast of the Arabian Penisula on Persian Gulf Federation of seven emirates since 1971 Dubai, Abu Dhabi, Ajman, Fujairah, Ras Al Khaimah, Sarjah, Umm Al Quwain Legal system is founded jupon civil law principles and Islamic Shari’a law, the latter constituting the guiding principle and source of law8.19 million population out of which 15% only are locals Non Oil Sector contribbutes 71% to GDP

3. WHY UAE?

   Strategic Location closest proximity to top European and Asian markets: Access to 2.2 Billion Consumers World-class free zones -100% foreign ownership of business 100 per cent repatriation of capital and profits Easily accessible raw materials, cheap energy sources Zero corporate profit taxes and personal income taxes. No minimum capital requirement to establish a limited liability company. Advantageous Tax Treaties with 71 Countries Stable Political Environment World Bank ranked UAE 23rd for Doing Business in 2013 Offshore location with zero taxation with the exemption of foreign banks and oil exporting cos

4. Types of Company registration

   There are 3 main options for registration of company in UAE : Mainland company registration Freezone onshore Offshore company

5. 1. Mainland company registration

   Gives access to the local market Maximum foreign participation allowed 49% Local partners UAE nationals with minimum 51% participation Need office space/ warehouse Residence permit is issued Employee VISAs are eligible No taxation No foreign exchange restrictions

6. 2. Free-Zone onshore company Registration

   100% foreign ownership Could do business with companies within the free-zone or outside the country Can do business locally only through a local distributor being a company registered in the mainland There are free-zones which provide license with and without taking any genuine office space/warehouse Residence permit issued Employee VISAs are eligible to apply No taxation No foreign exchange restrictions

7. 3. Offshore company formation

   Do business only outside UAE Can have tax free bank account in UAE No employee VISAs are eligible to apply No restrictions on foreign exchange No taxation

8. UAE OFFSHORE COMPANIES

9. UAE ONSHORE COMPANIES

10. UAE RESIDENCY Fastest and Easiest way to become UAE Resident By obtaining “UAE Investor Visa” Setup a free zone company 100% foreign ownership No paid up share capital No corporate tax Travel to and from the UAE is easier No personal income tax in the UAE The UAE is an OECD “white listed” jurisdiction Renewal Residency Visa every 3 years
11. COMPARISON RAK OFFSHORE & RAK ONSHORE COMPARISON
12. COMPARISON RAK OFFSHORE & RAK ONSHORE COMPARISON

13. Double Tax Treaty with Russia

    Ratified 7/6/2013 and is expected to enter into force as of 2014 But limited scope of application Covers the UAE and 7 emirates governments, the Central Bank of UAE, Investment Authorities of Abu Dhabi and of Emirates, any financial institution or investment entity , establishment, agency or any other body wholly owned by the government of UAE WHT on dividends/interest is zero, is paid to an entity as above described Contains exchange of information clause Limitation of benefits clause i.e. tax treaty benefits may be denied if proven that the only reason was tax Facilitates inflow of investments into Russia ( note that currently UAE investors in Russia pay 20% tax on repatriated profits, 15% on profits from interest and 20% on Capital gains

14. USES

    For trading or for services internationally and in the region For Asset protection being the last shareholder in a structure Property investment in UAE