"Company Set-Up in the Emirates. Why?"
During the past 20 years the United Arab Emirates have become the most important commercial centre of the golf region. Dubai, as one of seven independent emirates within the United Arab Emirates, is known as an extravagant commercial and economic centre of the Middle East and is also known as a hub for goods, finances and services.
The United Arab Emirates also possess a sophisticated infrastructure. The economic and political situation is very stable. Among the rest, this means, well-qualified and multilingual workforce at competitive labour costs. Cost of energy and financing expenses are also as competitive in the international comparison, coupled with a high liquidity level.
The Emirates are offering significant tax benefits to foreign companies and have additionally signed a double taxation agreement with more than 40 countries.
In contrast to customary companies, which have to be in UAEs hands about 51% or more, companies within the Free Trade Zones in the UAE are allowed to claim foreign ownership about 100%.
PROFITERABLE CUSTOMS REGULATIONS
In Dubai there are no exchange controls, i.e. exportations of capital and profits are permitted.
Due to liberal commercial regulation there are no commercial barriers or commercial rates. The import customs are about 4% and moreover permit to numerous exemptions.
The United Arab Emirates maintain double taxation agreements with more than 40 countries - Germany, Austria and Switzerland included.
This means, the earned profits are not paid tax on twice. There is also the fact that Dubai is "whitelisted", i.e. Dubai does not stand on the black list of the OECD or the FATF.
NO DOUBLE TAXATION
As the United Arab Emirates raise neither income tax, corporation tax nor other taxes on income achieved there, they are known as a tax haven.
Hence, the in the UAE achieved income by companies or employees are basically subject to no taxation (except for oil companies and establishments of foreign banks). There is also the fact that 100% amount to capital and profit repatriation.
Disadvantageous effects are to be checked if necessary within the scope of the regulations for the Controlled Foreign Corporation of the countries - so in Germany within the scope of §8 AStG (foreign transact tax act).