How to get paid a Tax Free Salary from your own company?
- Thread starter BerlusconiSchmidt
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Oh no, please not again. No, if you don't live in Europe, there are no social security contributions. For example, this doesn't exist in Dubai. Even if a European company pays your salary.
It depends on the country. Some countries do have socials. So its not exclusively "if you don't live in Europe".
Also, what do I specifically mention, and you even quote that sentence? "in Europe".
I am not aiming for anything. I reply to a comment that was made,︀ which made me wonder.
Also, what do I specifically mention, and you even quote that sentence? "in Europe".
I am not aiming for anything. I reply to a comment that was made,︀ which made me wonder.
We were talking about being paid a tax-free salary from a European company. This is different from living in Europe and receiving a salary without paying tax.
In some cases, it could be better to operate as a sole proprietor in Dubai (up to 375k AED is tax-free) and supplement that with employment income, e.g., from an Estonian company, or operate as an unincorporated partnership under a small business relief (up to 3M AED tax free).
This is because in UAE directors fee payment or benefit must align with the fair market value of︀ the service, benefit, or contribution offered by the connected person. Otherwise, there is a tax︁ risk if you pay way above the market rates. Market Value is determined by considering︂ the amount that would have been paid to any third party for providing the same︃ service received in similar circumstances. Management Remuneration can be supported by market surveys of compensation︄ by leading Human resources consulting firms or other manpower websites.
This is because in UAE directors fee payment or benefit must align with the fair market value of︀ the service, benefit, or contribution offered by the connected person. Otherwise, there is a tax︁ risk if you pay way above the market rates. Market Value is determined by considering︂ the amount that would have been paid to any third party for providing the same︃ service received in similar circumstances. Management Remuneration can be supported by market surveys of compensation︄ by leading Human resources consulting firms or other manpower websites.
Hi, can you elaborate a bit? What is the 90 days rule? How I can contact you to see if you can help me / structure me too? Many thanks!
This under 3M tax free is still valid for any︈ company or no? (offshore in UAE), thank you!
This under 3M tax free is still valid for any︈ company or no? (offshore in UAE), thank you!
If you’re running your business as a sole proprietorship in Dubai, then as far as I understand, your income should be tax-free.
On the other hand, if you’re operating through a company in Dubai and have salaries and other business expenses, the amount of tax you end up paying is minimal, since the new 9% corporate tax only applies to profits after expenses have been deducted.
On the other hand, if you’re operating through a company in Dubai and have salaries and other business expenses, the amount of tax you end up paying is minimal, since the new 9% corporate tax only applies to profits after expenses have been deducted.
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