Alternatives for UAE free zones after the elimination of the tax-free regime
The transformation of the UAE tax regime has forced businesses to think about the tax consequences of operating in this country. Given the rapid change and turbulence, it makes sense to consider alternative jurisdictions for doing business.
QATAR
The jurisdiction of Qatar is rapidly gaining popularity. A successful development strategy, political and economic stability, and high-quality infrastructure distinguish the country. The country's legislation is loyal to attracting foreign investment. Qatar has one of the lowest corporate tax rates in the world - 10% and 0% in free zones. Currently, the state offers several free economic zones with attractive conditions for business.
OMAN
A stable economic and political situation, favorable investor legislation, and a flexible tax system favor the jurisdiction. Income tax is levied on companies' global income; the rate is set at 15%. Under certain conditions, the rate can be reduced to 3%. Credit for foreign taxes is possible regardless of a double taxation agreement (DTA) with the relevant country.
HONG KONG
It is a special administrative region of the People's Republic of China. Thanks to its favorable location, low corruption, and loyal investment policy, it has the status of one of the world's financial centers. The territorial principle of taxation applies there: only income received in the territory of the jurisdiction is taxed. The standard tax rate is 16.5%.
MAURITIUS
The African island of Mauritius is becoming one of the most progressive financial centers in its region. It is open to foreign investment. The advantages of the jurisdiction are a stable political atmosphere, a solid liberal economy, and an expanding network of DTA agreements. Corporate tax in Mauritius is 15%. For certain types of income, in particular dividends, interest, and royalties, partial exemption (up to 80% of income) from tax is possible.
HOW DO YOU CHOOSE AN ALTERNATIVE FOR BUSINESS?
Are you choosing business relocations and exploring options? To wisely select a suitable jurisdiction for starting a business, contact IT-OFFSHORE specialists.
