What structure to wrap UAE residency (and reduce US taxes)

[jazzybell]

When you work with a US‍ client, the client will ask you to file a W8 form and once you put⁠ their UAE, this means the US client should withhold 30% of the payment amount to⁤ you, that's the US client's obligation.
of course, there is a case when the client⁣ doesn't hold it and it could be a case for them to pay 30% on⁢ top of your contract.
in general, if they have good accounting, they will withhold for︀ sure.
I'm talking about B2B contracts.

if you sell products it's a different story but︁ if you provide self-service, I can't see any other options.

 

[Marzio]

“All persons ('withholding agents') making US-source fixed, determinable, annual, or periodical (FDAP) payments to foreign‌ persons generally must report and withhold 30% of the gross US-source FDAP payments, such as‍ dividends, interest, royalties, etc”

https://taxsummaries.pwc.com/united-states/corporate/withholding-taxes
Why the US client should ask to file the W8⁠ form?

 

[jazzybell]

Because if you operate as US entity and would like to put your payment‍ to expenses then, service provider have to file W8 - for non-residents or W9 for⁠ US residents.
So, as UAE resident you will file W8

 

[Marzio]

I didn’t know that without W8 payments couldn’t be accounted as expenses. I guess then‌ what you are saying is correct.