Urs StirnimannManaging Partner

ILC International Legal Consultants

United Arab Emirates

A Global Business Hub

Urs StirnimannSwiss Management Services JLT, Dubai

10 April 2013

Overview

• General Info about the UAE• Major Free Zones of the UAE• UAE Offshore Companies• Double Tax Treaties

3 Forms of Companies

• Companies with local Partner or Service Agent• Free Zone Companies• UAE Offshore Companies

Free Zones• Since 1985 Free Zones.• 100% foreign ownership allowed.• Freedom to repatriate capital and profits without

restrictions. • No taxes.• More than 30 Free Zones in UAE.• Most of the service Free Zones like Internet City,

Media City, Healthcare City, Knowledge Village are in Dubai.

• Masdar Free Zone in Abu Dhabi.• Excellent conditions for specific businesses.

Offshore Company

• Since 2003, Offshore Companieseither from

• Jebel Ali Free Zoneor

• Ras Al Khaimah Investment Authority• No physical presence is necessary nor allowed. • Regulations similar to BVI and Jersey. • ILC International Legal Consultants Registered

Agent for such Offshore Companies.

List of Free Zones in Dubai

• Jebel Ali Free Zone• Dubai Airport Free Zone• Dubai Internet City• Dubai Media City• Dubai Studio City• Dubai International Media Production Zone• Dubai Knowledge Village• Dubai Outsource Zone• Dubai Logistics City• Dubai Gold and Diamond Park• Dubai Multi Commodities Centre / Jumeirah Lakes Towers• Dubai Cars and Automotive Zone

List of Free Zones in Dubai

• Dubai International Financial Centre• Dubai Industrial City• Dubai Maritime City• Dubai Carpet Free Zone• Dubai Technology Free Zone• Dubai Silicon Oasis• Dubai Flower Centre• Dubai Health Care City• Dubai Biotechnology & Research City• Dubai Textile Village• International Humanitarian City

Free Zones in other Emirates

• Sharjah Airport International Free Zone• Hamriyah Free Zone• Ajman Free Zone• Ahmed Bin Rashid FZ (UAQ)• Fujairah Free Zone• Ras Al Khaimah Free Trade Zone• Ras Al Khaimah Investment Authority• Masdar, Abu Dhabi• Abu Dhabi two four 54

Jumeirah Lakes Towers (JLT)Dubai Multi Commodites Centre (DMCC)

• Swiss Tower• Accepts nearly all activities• 40 minutes by car from

Dubai airport• 60 minutes bay car from

Abu Dhabi airport• Next to expensive villas as

well as reasonable apartments

• 2 metro stations• near to Dubai Marina,

beach

Licenses

• Individual Shareholders• Subsidiary• Branch

Double Tax Treaties• Algeria• Armenia• Austria• Belarus• Belgium• Bulgaria• Bosnia• Canada• China• Czech Republic• Egypt• Finland• France• Germany• India

• Indonesia• Italy• Korea• Lebanon• Luxembourg• Malaysa• Malta• Morocco• Mozambique• New Zealand • Morocco• Mozambique• New Zealand• Pakistan• Philippines• Poland• Romania

• Seychelles

• Singapore

• Spain

• Sri Lanka

• Sudan

• Syria

• Switzerland

• Tajikistan

• Thailand

• Tunisia

• Turkey• Turkmenistan• Ukraine• Usbekistan• Yemen

•Signed: 6 October 2011

•Ratified: in 2012

•In Force: 1 January 2013

Double Tax Treaty Switzerland - UAE

Art. 10: Dividends– Swiss withholding tax of 35%.– Dividends of Swiss companies to UAE Sovereign Funds

exempted from Swiss withholding tax.– Swiss Dividends to UAE shareholders:

Witholding tax reduced to • 5% (if owning at least 10% of Swiss company)• 15% (if less than 10%)

Double Tax Treaty Switzerland - UAE

Art. 25: Information Exchange– In accordance with OECD model art. 26– Fishing Expeditions excluded.

Double Tax Treaty Switzerland - UAE

Normal Swiss Withholding Tax on Dividends: 35%

Double Tax Treaty Switzerland - UAE

Swiss CompanyA

UAE Company

Swiss CompanyB

>10% OwnershipWithholding Tax 5%

<10% ownershipWithholding Tax 15%

Shareholder

Through Employment or Shareholder of a UAE CompanyWork and Residence Permit

Renewable after 3 Years (in some locations 2 years)

Only Condition:Not to be outside the UAE for more than 6 months

Residency in the UAE

ILC OfficesDubai

Swiss ILC Management Services JLTUrs StirnimannManaging PartnerSwiss Tower, Office 3601P.O. Box 309057Dubai, UAETel: +971 4 374 0700Fax: +971 4 374 0701Email: us@ilc-group.net

DohaILC International Legal Consultants Michel DailletManaging PartnerQatar Financial CenterP.O. Box 23245Doha, QATARTel: +974 655 0987Fax: +974 438 3838Email: md@ilc-group.net

SingaporeILC International Legal Consultants Bernhard WeberManaging Partner70 A Club Street069443 SingaporeSINGAPORETel: +65 6223 6096Fax: +65 6223 9071Email: info@ilc-group.netwww.ilc-group.net

ZurichRitter Attorneys-at-LawRichard RitterFounding PartnerBahnhofstrasse 268022 ZurichSWITZERLANDTel: +41 44 222 1515Fax: +41 44 222 1500Email: mail@rcrlaw.com