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If there’s one thing that businesses around the world hate to hear its high tax rates! Unfortunately, a large majority of governments seem to think the exact opposite. As they go from one fiscal crisis to another, governments turn to milking businesses for they’ve got. A quick glance at the tax rates around the world throws up some scary statistics. Corporate taxes range from the low twenties to the high thirties across Europe, Asia, North America and the Middle East. But that is not all. Indirect taxes including Value Added Tax (VAT) among others are another bone of contention. These range from 5% to 20+% across the Europe, Asia, North America and the Middle East. Add to this the high levels of personal and income tax. These range in the 30% to 40% bracket. Given that the trend has been observed to be slanting towards higher taxation rates, the picture looks quite grim. In fact; from certain perspectives does look rather bleak, dark and grey. Finding it tough to gulp down the hard truth? Apple, the poster child of the tech world has had to fork out a humungous $8.3 Billion dollars in taxes that were payable around the globe. Taxes that end up supporting the local, state and federal government hugely. Others too weren’t that far behind. Oracle, Microsoft, Google and their likes have all voiced their opinion that a time has come to perhaps rationalize the pie. This is further exacerbated by the fact that the world has gone digital. No longer is it necessary for corporations to maintain a large scale physical setup in every country they set up shop. The digitalization phenomenon has revolutionized the industry forever and products may be billed in one country and sold all over the world. Little need then, for a lot of industries to look for more favourable alternatives. Recognizing the need to encourage trade and commerce in this new economy, progressive governments in regions like the Middle East for example, have pulled out all stops. A Offshore company formation in Dubai, UAE & RAK has become one of the simplest things to do for businesses in need of a more conducive environment. There are quite a few beneficial elements to such an approach. Foreigners are encouraged to set up businesses. They are supported with trade friendly laws, which mean that there are no more of those ugly barriers, seen elsewhere around the world. There is smooth passage both, to and fro of finances, funding and capital. Taxation rates are kept at the lowest to encourage trade. Some even go on to abolish taxes completely. Thus, businesses need no longer worry about paying Income Tax, Personal Tax, Corporate & Value Added Taxes, etc. They are free to do business and rake in as much profit as they like. Certain places like RAK business centres even allow for full repatriation of profits and capital, back to the parent country. No surprise then to see ever increasing demand for such conducive trade locations. Ones where, the local governments too are responding rapidly with the latest infrastructure and investor friendly laws. AUTHOR BIO :
A Offshore company formation in Dubai, UAE & RAK has become one of the simplest things to do for businesses in need of a more conducive environment. They are supported with trade friendly laws, which mean that there are no more of those ugly barriers, seen elsewhere around the world.
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