The introduction of corporate tax in the UAE as of June 1, 2023, under Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (hereinafter – the “Law”), has necessitated a reassessment of the status of offshore companies, which have traditionally served as tools for international tax planning.
Offshore companies in the UAE are incorporated in designated registration zones, each governed by its own regulatory framework. The most well-known jurisdictions include:
- Jebel Ali Free Zone Offshore (JAFZA Offshore) – governed by Jebel Ali Free Zone Offshore Companies Regulations 2023;
- Ras Al Khaimah International Corporate Centre (RAK ICC) – governed by RAK International Corporate Centre Business Companies Regulations 2018;
- Ajman Offshore – governed by Ajman Free Zone Offshore Companies Regulations.
The primary purpose of these entities is to conduct international business outside the UAE. According to local regulations, offshore companies are not permitted to engage in commercial activities within the UAE, cannot lease office premises, do not qualify for r...