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Dubai, UAE, 23 August 2015: The Links Group, one of the UAE's leading providers of commercial facilitation and advisory services, says the introduction of a value added tax (VAT) and corporation tax is unlikely to deter foreign investors from establishing a commercial presence in the country.
John Martin St. Valery, founding partner of The Links Group said: "Plans to introduce a federal tax system have been mooted for some time now as the UAE steps up efforts to consolidate non-oil revenues. Although a major shift in fiscal policy from a country widely recognised for its low tax status, we consider this a sign of a maturing market, with a diminishing natural resource, taking the long term seriously.
"The introduction of a sales tax and broadening of the corporation tax are obvious steps forward and, although they will necessitate changes to the administration of locally-registered companies, the anticipated low rate of taxation applied is unlikely to impact foreign investors who are typically familiar with these types of taxes.
"These taxes are also an indication to foreign investors that the UAE government recognises offering and implementing world-class infrastructure services comes at a cost. The benefits of existing infrastructure, geographical location and ease of travel, communication, and safety and security of the country more than outweigh any perceived costs.
"An efficient low tax environment is unlikely to see an exodus of expatriates or deter foreign investors from entering the market. Both Singapore and Hong Kong are testament to this. The UAE enjoys a similar geographical advantage as these markets, in terms of being a gateway to the fast-growth economies of the Middle East, the Indian sub continent and Africa.
"We are following closely the updates from the Ministry of Finance in order to best prepare our clients for the possible financial consequences of sales and corporation taxes in the UAE."
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About The Links Group
Established in 2002, The Links Group is a premier company formation specialist offering beneficial ownership protection to foreign companies entering the UAE and Qatar. It advises corporations and individuals on how best to structure a legal commercial presence in the Middle East that protects their ownership interests and affords clear succession planning.
The Links Group is the first company of its kind to be endorsed by the Government of Dubai through a strategic alliance with the Foreign Investment Office (FDI) of the Dubai Economic Department and provides an unrivalled portfolio of corporate services including nominee local partnerships, corporate administration and government liaison support. The Links Group difference is that foreign companies work with a highly structured board as their local partner as opposed to an unknown individual. This structure provides foreign businesses with a corporate entity to act as their nominee, local partner, shareholder or sponsor, thereby minimising the risks associated with appointing an unknown individual nominee and satisfying corporate governance requirements.
The Links Group has an untarnished track record with 300 clients, who represent combined annual revenues of over USD 5bn to their respective economies.
The Links Group is also recognised as a Dubai SME 100 company, a ranking of the top performing SMEs in the emirate, and an Arabian 500 company.
© Press Release 2015
