🇦🇪 UAE12m
🌐 GlobalTax & Compliance10 min read30 January 2024
Cross-Border Tax Planning for High-Net-Worth Individuals and Family Offices
UHNW individuals and family offices operating across multiple jurisdictions face increasingly complex tax obligations. This guide examines the key planning strategies available under current international tax rules.
The UAE as an International Tax Planning Platform
For UHNW individuals, the UAE has emerged as the premier global tax planning platform: no personal income tax, no capital gains tax, no inheritance tax, a growing network of 135+ double tax treaties, and a Tax Residency Certificate framework that is recognised internationally.
The UAE's tax treaty network covers key investment destinations including the UK, Germany, France, India, Singapore, and China, reducing withholding taxes on dividends, interest, and royalties received from these jurisdictions.
Key Planning Strategies
ILS Consultancy's tax advisory practice focuses on four principal strategies for UHNW clients: (1) establishing genuine UAE tax residency and obtaining TRC; (2) structuring investment portfolios through optimal holding entities; (3) managing controlled foreign corporation (CFC) risks in home country jurisdictions; and (4) estate and succession planning using trusts, foundations, and family constitutions.
Frequently Asked Questions
What is tax residency and why does it matter?
Tax residency determines which country has primary taxing rights over an individual's worldwide income and assets. For UHNW individuals, establishing clear tax residency — typically through the UAE's Tax Residency Certificate (TRC) — is the foundation of effective international tax planning.
Can the UAE issue a Tax Residency Certificate?
Yes. The UAE Federal Tax Authority issues Tax Residency Certificates (TRCs) to individuals who have been resident in the UAE for at least 180 days in the relevant year and can demonstrate a permanent home in the UAE. The TRC is recognised under the UAE's growing network of double tax treaties.
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