| This is an interesting jurisdiction. In Dubai | | | | studied carefully and they may not be very |
| there are no taxes of any sort one has to | | | | effective tax remedies all. .The Central Bank |
| contend with, so there is no tax filing and | | | | rules issued by the Securities and |
| no tax audits, etc. Most offshore | | | | Commodities Authority of the UAE, the |
| jurisdictions have no taxes pertaining to | | | | settlement of transactions amounting to more |
| offshore derived income but do tax onshore | | | | than Dh40,000 is required to be properly |
| derived income like if you owned a restaurant | | | | documented, and the identity of the investor |
| in the jurisdiction. Panama is loose in that | | | | verified. Whoops no privacy here. Think about |
| if you had no onshore income you do not have | | | | money being frozen while identity is |
| any tax returns to even file. Dubai has no | | | | verified. Federal Law No. 4 (2002), which |
| tax collection organization period. BUT Dubai | | | | allows financial authorities to seize |
| is in tax treaties which is generally a big | | | | suspicious funds whilst investigations are |
| negative since it opens the door to fishing | | | | taking place. The DFSA had signed two |
| expeditions.The double taxation treaties are | | | | memoranda of understanding with the Isle of |
| aimed at reducing taxation in the foreign | | | | Man's Financial Supervision Commission and |
| jurisdiction on profits generated abroad by | | | | Insurance and Pensions Authority and more are |
| foreign corporations operating in Dubai.There | | | | on the way.Other problems with Dubai are the |
| are double taxation agreements with Algeria, | | | | cost of incorporation is typically in the |
| Jordan, Sudan, Syria, Kuwait, Yemen, Egypt, | | | | $5,000 range with zero advantages and |
| Finland, France, India, Malta, Pakistan, | | | | numerous disadvantages when compared to an |
| Poland, China, Germany, India, Indonesia, | | | | anonymous Panama Bearer Share |
| Italy, Malaysia, Poland, Romania, Singapore, | | | | Corporation.Another issue is when you start |
| South Korea, Sudan, Algeria and Turkey. These | | | | receiving and sending wires to Dubai you are |
| treaties call for profits derived from | | | | going to pop up on a lot of radar (terrorism |
| shares, dividends, interest, royalties and | | | | and the whole middle east thing) which means |
| fees to be taxed only in the contracting | | | | your account will be monitored by lots of |
| state where the income is earned which should | | | | people and organizations. Then you have to |
| ideally be Dubai. There is no corporate | | | | consider the stability of the region and of |
| income tax in Dubai and the provisions of the | | | | course it is a hotbed of unrest and can flare |
| treaties do not state that such income must | | | | up any time. Then you need to study the |
| be taxed to qualify for benefits. Thus there | | | | government of the country and decide for |
| could be a tax exemption from the home | | | | yourself if you would have a fair chance in |
| country even though Dubai/UAE has not levied | | | | the courts if someone decided to sue you |
| any taxes on it. Some countries require taxes | | | | where your assets are in Dubai. You can find |
| to be paid and other have a minimum taxation | | | | better and safer jurisdictions. |
| level so the individual treaties must be | | | | |