54 LAWYER MONTHLY MARCH 2024 A noteworthy challenge faced by corporate entities and authorities involves identifying Ultimate Beneficial Owners (“UBOs”) within complex structures, including trusts, foundations, or private investment vehicles. Newly introduced UBO identification procedures provide clarity around these complexities. 3 - A Comprehensive and Efficient Toolbox A significant surge in UAE family offices over the past three years reflects a trend towards personalized services, to meet high-net-worth families’ distinct wealth management needs. Effective structures, such as Foundation regimes in ADGM, DIFC, and RAK ICC with a proven track record for over six years, and Trusts are recognized tools for multi-generational wealth preservation and achieving succession planning objectives. Navigating the legal, regulatory, and tax landscapes governing these structures requires expertise and industry insights from local tax advisors and wealth planners, for compliance and risks and liabilities mitigation for clients. With globalization facilitating cross-border wealth movement, international tax advisors guide clients through the complexities of international tax regimes, exchange of information agreements, and jurisdictional nuances, ensuring the sustained effectiveness of these structures in achieving financial goals. 4 - Recent Key Developments The UAE’s achievement of minimum corporate taxation and its adherence to OECD’s standards (as member of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting) contribute to its international standing. Following recent assessments of preferential tax regimes conducted by the Forum on Harmful Tax Practices, the UAE CT regime applicable to Free Zones has been reported as No Harmful Tax Practice. And breaking news, on 23 February 2024, the Financial Action Task Force has removed the UAE from its “grey list”! The UAE has unmistakably emerged as one of the world’s most dynamic global hub for migrating HNWIs, embracing state-of-the-art wealth structuring practices.
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