Life StyleNewsViral News

UAE is among the world’s fastest-growing tax havens, study finds

The UAE has also been criticised by the Financial Action Task Force, the global dirty-money watchdog [File: Christopher Pike/Bloomberg]

UAE is among the world’s fastest-growing tax havens, study finds

The United Arab Emirates, a magnet for the globe’s ultra-rich, has also emerged together of the fastest-growing corporate tax havens, consistent with a study released on Tuesday that highlighted the quite $200bn flowing into the country.

The Corporate country Index 2021 – published by the Tax Justice Network, which documents countries that attract companies to shrink their tax bills – added the United Arab Emirates to its top-10 ranking, which incorporates Switzerland and Bermuda.

The United Kingdoms’s offshore territories British Virgin Islands , the Cayman Islands and Bermuda were named because the most vital jurisdictions employed by companies to minimise their taxes, followed by Netherlands .

The UAE joined the highest ranking at number 10 after multinationals rerouted over $218bn of foreign direct investment via Netherlands to the UAE to save lots of taxes, the study said, bolstering financial activity by almost 180 percent.

A Dutch finance ministry spokeswoman said Netherlands had introduced a withholding to focus on flows of cash to low-tax countries, including the UAE and Bermuda, and to stop Netherlands from getting used as a conduit. It estimates, however, that the cash flows are lower.

The UAE didn’t answer an invitation for comment.

The Tax Justice Network, a gaggle funded by donations and campaigning for transparency, said its study measured multinational activity, also as tax rates and loopholes. While companies aren’t forbidden from using loopholes, the practice is viewed critically.

“You don’t got to be a tax expert to ascertain why a worldwide legal system programmed by a club of rich tax havens is haemorrhaging over $245bn in lost corporate tax a year,” said Alex Cobham, Tax Justice Network’s chief executive.

Dubai, a celebration capital within the UAE and a magnet for social media influencers, was hit hard by the coronavirus pandemic as lockdowns hurt tourism and shopping while lower oil prices weighed on the Gulf state’s revenues.

To counter the decline in local population and revive a struggling property market – after job cuts prompted many expatriates, who structure the bulk of the population, to go away – it redoubled efforts to spice up the economy.

The government loosened rules to encourage international companies to determine an area foothold and bolstered schemes offering visas to rich foreigners.

The country has been criticised by the Financial Action Task Force, the worldwide dirty-money watchdog. The UAE recently approved the creation of a replacement office to tackle concealment and terrorist financing.

The Cayman Islands government said it “supports a good tax system” and was committed to “international tax standards”. The UK’s finance ministry said overseas territories set their own policies. Other countries either didn’t respond or declined to comment.

Leave a Reply

Your email address will not be published.

Back to top button