UAE has been named among the top tax havens in the world. In tax research which was carried out, it saw Qatar leapfrog other nations to the position.
UAE among top ten tax haven in the world
The United Arab Emirates has seen a surge of tourists who are there for business or pleasure in recent times. It has gradually grown into a top tax haven according to a financial report released on Monday which looked into the more than $350 billion flowing into the nation.
The tax index which was published by the Tax Justice Network said some countries attract huge capitals to reduce their bills and escape paying huge taxes. The index indicated that the UAE has entered into the top nations known as tax havens countries. These countries include Switzerland, Bermuda, Monaco, and UAE. Also, included are British territories like the Cayman Islands and the British Virgin Islands.
Big firms transferred more than $200 billion to UAE to reduce tax
These nations are used by big firms to reduce the tax paid to governments. The UAE has now successfully joined the countries after several multinationals firms wired about $220 billion worth of international direct investments using Dubai and the Netherlands to reduce tax. The research also says this has increased financial operations and business in the Arab nation by 170%.
Moreover, an official of the Netherlands had said that some taxes are withheld to get more inflows into the country. However, officials of the UAE are yet to respond to comments about the study. The Tax Justice study is funded via several donations from NGOs and transparency groups. 'It isn't compulsory to be a tax guru to notice that Dubai and other nations encourage wealthy firms to come into their country by offering them ridiculous tax' Alex Hudson said.
The nation has been affected by the Pandemic and finding ways to augment its economy has devised many policies to get them back on track.