Prudent tax strategy key to making Dubai world’s largest diamond hub

Prudent tax strategy key to making Dubai world’s largest diamond hub

In a letter to French scientist Jean-Baptiste Leroy in 1789, Benjamin Franklin famously said, “In this world, nothing can be said to be certain except death and taxes,” a statement widely misquoted as a metaphor for the unavoidable nature of our own mortality and the ever-present spectre of the tax collector. And for the most part, I agree with both. Tax, in its idyllic state, serves as a useful and necessary mechanism where members of society contribute towards common services and or amenities that ensure basic needs are met, thereby creating an equitable and civilised foundation on which communities and businesses can flourish. However, as our world continues to become further interconnected, the outcome of tax design is no longer as simplistic as a source for revenue, but a delicate balance that has the power to influence a wide range of factors for both businesses and nations alike. As a nation, the UAE has no federal income tax and a targeted income tax that is restricted to foreign banks and oil companies, making it highly attractive to expats who make up approximately 80 per cent of the population and who ultimately reinject at least a portion of their earnings into