RAK for Daytrading

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kinglion

kinglion

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Nov 20, 2020
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Hello,

i own an German GmbH (LLC) for an online SaaS. All my 80% of my customers are germans. 15% austrian. 5% Swiss.

my company profits approximately 100 to 120k per year.
As a side hustle im daytrading with futures and i made 90k this year. My accountant told me that i have to pay 27% tax for my futures trading.

now my idea is to keep the GmbH in germany and setup an company in the Rak freezone to trade my futures.

I dont have an issue with traveling every 6 month to the UAE.

1. is it correct that i dont have to pay taxes on daytrading?
2. can i setup an holding structure for my GmbH so that i pay less taxes in germany (this is optional)

is rak the best option for me or should i look for other countries.
I have to live in germany and i want to have a company outside the EU
 
Hey,

Based on the information you have provided I understand that you are a tax resident in Germany. As a general rule, if an individual is resident and domiciled in Germany he might be taxed in Germany on his worldwide income and capital gains. It is important to understand that tax residency (not citizenship) is the most important factor in international tax planning. Therefore if you change your tax residency country you can legally benefit from extremely effective tax regimes without any risks.

Germany applies a number of “tax anti-avoidance” rules, therefore every structure must be examined in the light of these rules. For example, the “permanent establishment concept” controlled foreign corporation (CFC) or similar rules.

Nevertheless, if you have the possibility to regularly visit the UAE, stay there for a certain period of time, and perform a significant part of business functions from UAE, this country might be considered as an option.

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As far as i understand,

as long as i visit UAE every 6 month im considered as an UAE resident.

How should the german tax authority know that i have an UAE company?
 
IF you will get asked by the tax office to prove your social and economical substance in UAE, so 1 visit every 6 months won't be sufficient.

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Gediminas said:
Gediminas said:
IF you will get asked by the tax office to prove your social and economical substance in UAE, so 1 visit every 6 months won't be sufficient.
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Can you explain that further?
or can you provide me a site where i can read more?

German Tax System sucks. There are so many regulations and the taxes are too damn high
 
kinglion said:
kinglion said:
Hello,

i own an German GmbH (LLC) for an online SaaS. All my 80% of my customers are germans. 15% austrian. 5% Swiss.

my company profits approximately 100 to 120k per year.
As a side hustle im daytrading with futures and i made 90k this year. My accountant told me that i have to pay 27% tax for my futures trading.

now my idea is to keep the GmbH in germany and setup an company in the Rak freezone to trade my futures.

I dont have an issue with traveling every 6 month to the UAE.

1. is it correct that i dont have to pay taxes on daytrading?
2. can i setup an holding structure for my GmbH so that i pay less taxes in germany (this is optional)

is rak the best option for me or should i look for other countries.
I have to live in germany and i want to have a company outside the EU
Click to expand...
Click to expand...

That would work, and germany would 99% never find out about it. As long as you are a UAE resident, no crs applies.

To be 100% legit, you need to move for sure though.

Dont mix your German company and Dubai company. If you want it to be secret.
 
Dandyline said:
Dandyline said:
That would work, and germany would 99% never find out about it. As long as you are a UAE resident, no crs applies.

To be 100% legit, you need to move for sure though.
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I'm not an UAE resident. AFAIK when i set up an company, I can apply for residency visa.

Residency visa is considered as resident is that correct?
 
In Simple Word
UAE allow to maintain Resident Visa As long as you Visit UAE once in every six month.

But the Tax Domicile Certificate is different Things ,You have to spend 183 Days in the Tax year to get this certificate.
You can get more info here from government website (www.mof.gov.ae/en/mservices/Individual/VtAx/Pages/tax.aspx) or trc.tax.gov.ae

"UAE Resident Visa" Not equal to "Tax Domicile Certificate"
These are different things.
 
hirenshukla2017 said:
hirenshukla2017 said:
In Simple Word
UAE allow to maintain Resident Visa As long as you Visit UAE once in every six month.

But the Tax Domicile Certificate is different Things ,You have to spend 183 Days in the Tax year to get this certificate.
You can get more info here from government website (www.mof.gov.ae/en/mservices/Individual/VtAx/Pages/tax.aspx) or trc.tax.gov.ae

"UAE Resident Visa" Not equal to "Tax Domicile Certificate"
These are different things.
Click to expand...
Click to expand...

I only need the Tax Domicile Certificate if I want to inform the german tax office. Am I Right?
But that is exactly what I do not want. I will then be taxed in UAE but the german tax office will watch me.
If f up something they will know.
 
kinglion said:
kinglion said:
I only need the Tax Domicile Certificate if I want to inform the german tax office. Am I Right?
But that is exactly what I do not want. I will then be taxed in UAE but the german tax office will watch me.
If f up something they will know.
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Thats correct.
 
UAE is tax free.
When you remit money from company account to your personal account then tax apply.
If you use company visa/master card for your financial need.
That will be tax free.
Legally No tax.

kinglion said:
kinglion said:
I only need the Tax Domicile Certificate if I want to inform the german tax office. Am I Right?
But that is exactly what I do not want. I will then be taxed in UAE but the german tax office will watch me.
If f up something they will know.
Click to expand...
Click to expand...
 
Dandyline said:
Dandyline said:
Thats correct.
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Click to expand...
But if I have the visa I count as a UAE resident according to UAE law. That means that nothing is transferred with the CRS.
I would shoot myself in the foot when I get a Tax domicil certificate.


Does RAK/UAE make sense for my plans with futures trading etc.?
 
hirenshukla2017 said:
hirenshukla2017 said:
UAE is tax free.
When you remit money from company account to your personal account then tax apply.
If you use company visa/master card for your financial need.
That will be tax free.
Legally No tax.
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Click to expand...
I want to save taxes because I have more money to reinvest

it is clear that i have to pay income tax here in germany when the money is deposited in my private bank account
 
You keep your Trading Profit in company account ,And reinvest it ,
Do not transfer to Germany.
Nothing is wrong in that.
 
hirenshukla2017 said:
hirenshukla2017 said:
You keep your Trading Profit in company account ,And reinvest it ,
Do not transfer to Germany.
Nothing is wrong in that.
Click to expand...
Click to expand...
do you believe you can avoid taxes in Germany by doing so? I think only if no one is going to report you this will work, otherwise you will have to pay taxes in Germany and the authorities there will refuse if you only stay in Dubai or anywhere else there for 1 day!

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Who will report ? How it will be wrong ?
Can you explain me?
What is wrong in this things ?
Most big Company pay for their ceo/manager for their expenses, do they pay tax for that ?
Like Facebook paid for Mark Zuckerberg security and travel.
Do Mark Zuckerberg paid tax for that expensese ?
 
kinglion said:
kinglion said:
But if I have the visa I count as a UAE resident according to UAE law. That means that nothing is transferred with the CRS.
I would shoot myself in the foot when I get a Tax domicil certificate.


Does RAK/UAE make sense for my plans with futures trading etc.?
Click to expand...
Click to expand...

Yes, its not legal because you are tax resident in Germany. But they will never know so it doesnt matter, you will not be able to move money to Germany tho.

You can save money i Dubai for years then move there for real when you want to legitimise the money.
 
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