UAE, Dubai Bank Secrecy & Shareholders’ Confidentiality

It is common knowledge that the UAE’s banking system is more efficient and applies more effective policies than most countries around the world. This is no exception when it comes to protecting shareholder’s personal information.

The UAE companies are not subject to harmful tax practices, meaning they do not have different tax regime for resident companies operating within UAE and UAE companies which operate from abroad. That is, most countries apply a different tax regime and tax rate to companies operating within the country and a different tax regime and tax rate to companies that conduct business outside the country. Additionally, the UAE does not impose tax on the majority of the corporate entities, despite the nature of its activities and its place of operation. Therefore, the UAEs are not accused or pressured from regulatory authorities or other jurisdictions that they apply special tax regimes for different types of corporate entities.

Main features of UAE for protecting shareholder’s information:

  • A company owner’s information is not publicly available and thus cannot be disclosed;
  • The UAE is not obligated to keep records of a company’s shareholder(s) in any central or public registries;
  • The UAE is not obligated to publish financial statements of companies’, in any public or central registries;
  • The UAE banks do not obtain information regarding the beneficiaries of non-resident companies, which a UAE company makes transfers or payments.
  • The UAE maintains a confidentiality policy and are fully compliant with international standards on anti-laundering policies. This is the main reason the UAE has never been added to the Financial Action Task Force (FATF) blacklist;
  • UAE banks do not report for CRS purposes individuals with UAE residency Visa or individuals who participate in active trading companies.

The UAE has formed an extensive double tax treaty network. Some of the countries, which have a double tax treaty with the UAE, are the following:

Japan, Sri Lanka, South Korea, Chile, Switzerland, Czech Republic, France, Holland, Georgia, India, Tajikistan, New Zealand, Italy, Spain, Vietnam, Germany, Lebanon, Malta, Belarus, Canada, Herzegovina, Brazil, Jordan, Morocco, Tunisia, Ukraine, , Turkey, Sudan, Finland, Poland, Romania,  Hong Kong, Cyprus, Yemen, Pakistan, Mongolia, Colombia, Bulgaria, Malaysia, Egypt, Singapore, Greece, Uzbekistan, Thailand, Seychelles, China, India, Mauritius, Syria, Korea, Bangladesh, Venezuela, Indonesia, Luxemburg, Belgium, Austria, Mozambique, Bosnia, Libya, Azerbaijan and Turkmenistan.

Based on a study conducted by the Tax Justice Network & Financial Secrecy Index, the UAE is one of the most dependable and consistent countries regarding confidentiality, throughout the world.