UAE Companies – How Your Business May Be Affected
If you are operating an onshore or offshore entity in a "no
or only nominal tax jurisdiction" (referred to hereinafter as
a "noon"), which amongst others, holds shares or licenses
intellectual property and receives operational income from other
jurisdictions this article should be important to you and you
should make yourself aware of the content as your business may be
materially affected by the newly introduced economic substance
rules formulated by the European Union Code of Conduct Group on
Business Taxation.
What are "Economic Substance Rules"
The European Union (EU), has implemented criteria with which
jurisdictions with no or only nominal tax policies need to comply
as part of the EU's efforts to promote economic
inter-jurisdictional transparency and to restrict so-called
"harmful tax competition" practices. Noons are required
to eliminate the facilitation of structures or arrangements aimed
at attracting
