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