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The UAE has also become one of the most important tax havens in the world, Reuters reports, citing a Tax Justice Network study published on Tuesday. The Arab country has thus joined such illustrious tax havens as the British Virgin Islands, the Cayman Islands or even Bermuda.
The Middle Eastern state has become one of the fastest growing corporate tax havens since Multinationals have transferred more than $ 218 billion in foreign direct investment through the Netherlands to the United Arab Emirates, to save taxes.
By the way, the Netherlands also occupies a prominent place in the ranking of ten countries of the Tax Justice Network; the full list can be found below. According to a Reuters article, this $ 218 billion cash flow is huge, even for a country rich in oil reserves:
- On the one hand, it is about half of the UAE’s annual GDP,
- on the other hand, it boosted the volume of financial activities by almost 180 percent in the case of multis in the United Arab Emirates.
Reuters, citing a spokesman for the Dutch Finance Ministry, writes that the Dutch are trying to tax cash flows between countries with low corporate taxes, including the United Arab Emirates and the Netherlands. The goal is not to use your country as some kind of channel for tax evasion. However, according to its Ministry of Finance, this cash flow is lower.
You don’t have to be a tax expert to see why more than $ 245 billion in corporate taxes disappear in a global tax system programmed by the Wealthy Tax Havens Club.
– The article quotes Alex Cobhamt, CEO of the Tax Justice Network.
By the way, not only the Dutch government but also the Cayman Islands government has responded, claiming that they “support a fair tax system” and are committed to “international tax rules.”
List of the top 10 corporate tax havens (Corporate Tax Haven Index 2021):
- British Virgin Islands
- Cayman Islands
- Bermuda Islands
- Netherlands
- Swiss
- Luxembourg
- Hong Kong
- sweater
- Singapore
- United Arab Emirates
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