UAE Corporate Tax Guide: Dos & Don'ts

[Cryptohodler]

True, it's unfortunate but the freezone company can opt⁠ to get taxed as a mainland company and avail of the threshold of three million⁤ AED tax free.
What I don't understand is why anyone would incorporate a freezone company⁣ anyways since they have all but lost their advantages over mainland companies.

 

[Berti]

From what I know⁠ it is more expensive and more difficult.

 

[manukahoney]

Well, freezones don't need to charge VAT when working with non-UAE clients and other freezones.‌ So one less tax to manage and 5% cheaper for clients.

 

[fshore]

Do mainland charge vat to foreign clients??

 

[manukahoney]

Probably not, but‌ if they trade with freezones - they do (or so I was told).
So the‍ only advantage of FZCO for non-qualifying trading is basically FZCO-FZCO trade. I might be wrong,⁠ I tried to ask several accounting guys and received the opposite views.

 

[John Doe GOLDEN STAMP]

Emiratisation, yes. Keep your staff to 20 people and that's it.. It is also‍ important to mix nationalities. But I don't see any problem to hire some familiar Emirati⁠ after 20 personal employees. P.S. Fines from 50 to 500 thousand dirhams.

 

[clemens]

It's worth to keep your self up to date with the latest tax regulations in‌ the UAE.

Right now, it feels like a total mess in the UAE - I‍ bet even the tax folks there don't have a clue about their own rules. It's⁠ like pure chaos. Kinda like when you chop off a chicken's head, and it just⁤ keeps running around all over the place, totally lost.

 

[ecool]

Last month I paid quite a big amount for a reputable tax consultant agency in‌ Dubai to do a tax assessment for the company. After around a month back and‍ forth they said they could not still clearly say if we had to pay tax⁠ or not and they refunded most of the payment. Their suggestion was to wait more⁤ for government clarification. And check back again… so I can understand nobody knows

 

[John Doe GOLDEN STAMP]

Let me agree with you)) It's not dangerous for small businesses. But if we talk about⁣ companies "exceeding their income by 375K", then audits, reporting, registration...headache. And yes, we are all⁢ waiting for the template when they finally have a single document (draft to fill out)︀ for Corporate tax and VAT.

 

[clemens]

Are there any update to the current tax situation for Dubai companies or is everything‌ still not clear on how to collect taxes to the Dubai regime ?

 

[ImKing]

The situation in Dubai is the same, no one knows anything about the changes there‌ and the 9% tax apply to all companies incorporated during the last years.

 

[John Doe GOLDEN STAMP]

Greetings to you! Everything is very clear. The best advice for you⁠ if you do not want to hire an accountant or pay for a detailed consultation⁤ is to visit the FTA website.