The UAE will begin to apply in 2018 the agreements on information exchange for tax purposes developed by the OECD and the G20 in accordance with the provisions of the FATCA Law (Foreign Account Tax Compliance). The UAE joined the Global Forum on Transparency and Exchange of Information for tax purposes following the decision of the UAE Council of Ministers in 2010 and earned him a seat on the International Steering Committee of that Forum.
There are many reasons to put yourself in the hands of a consulting firm with a long history and Swiss tradition that will help you manage your assets efficiently.
It may seem that Islamic banking is against profiting from its actions, something contradictory in today's capitalist world. However, the islamic banking offshore It is against usury, in other words, the practice of charging excessive interest on loans. There are extensive passages in the Koran that condemn this practice. In many cases “excessive interest” is interpreted as any type of interest. However, interest is understood by our western banks as financial compensation to the lender for the cost of lending the money.
The word "riba" literally means "excess" or "addition", and has been translated as interest, usury, excess, increase or addition. According to Shariah terminology, it implies any overcompensation without due consideration.
On the other hand, these entities work mainly with the Asian region. This is one of the reasons why they only offer customer service in two languages: English and Arabic.
There are two important areas known by their initials JAFZA and RAK where registered companies can benefit from a tax exemption for 50 years. The Jebel Ali Free Zone in Dubai is one of the most recognized free trade zones; It was created in 1985 to attract investors and create a tax-free, barrier-free business environment. About 30 kilometers from Dubai International Airport, Jebel Ali has the largest man-made port facility in the world. More than 3.000 companies from more than 60 countries have already established themselves in this area. On the other hand, the Ras Al Khaimah Free Zone (RAK) offers important advantages, especially in terms of establishment costs.
The main reason for this situation is the tax status of companies. Many people register an offshore company in the Emirates Registries with the intention of keeping it inactive. The resident director of Dubai will be listed as the owner safeguarding the identity of the beneficial owner. This way you will not have to declare it in your country of origin.
There are many similarities between the two. However, each of them is established for completely different purposes.
Both can be wholly (100%) owned by a foreigner without the need to partner with a local entrepreneur. All companies may benefit from having a bank account in a Emirati bank and all of them will be registered in the country's registers. However, there are also differences between them.
A Free Trade Zone company aims to carry out commercial activities within the United Arab Emirates without the taxes associated with this activity and with the certainty that the capital can be totally foreign owned.
However, unlike a company in the Free Zone a offshore companyIt cannot operate directly in the United Arab Emirates, despite being registered as a legal entity with the corresponding Free Zone authorities in the United Arab Emirates.
Banks often adjust the structure of their assets with the help of specialized wealth structuring managers. Among the services offered of medium quality, the Wealth planning. This medium quality service is offered by specialists in the global structuring of family, private or business assets to optimize ownership, management and capital movements, taking into account the tax regime applicable to each client.
Local banks are usually strong and do not depend on the outside for their business. They generally do not have foreign branches outside the Gulf region. The banking system allows unlimited cash transfers at all hours of the day and with the ability to move large amounts of money.
Depending on the type of service that the islamic banking it will be slower and more expensive. For example, if accounts are requested for a personal account, there is a requirement that the client must go in person to the bank branch and taking into account that these banks do not usually work in the European area, it will be somewhat expensive.
On the other hand those who wish open an offshore company subsidiary in the country will have to face the inconvenience of time and the high cost of document certification with its corresponding translations and other administrative procedures.
Depending on the type of service that is required, Islamic banking will be slower and more expensive. For example, if accounts are requested for a personal account, there is a requirement that the client must go in person to the bank branch and taking into account that these banks do not usually work in the European area, it will be somewhat expensive.
On the other hand those who wish open a foreign company subsidiary in the country will have to face the inconvenience of time and the high cost of document certification with its corresponding translations and other administrative procedures.