Goodbye to Dubai and all UAE Banks friendliness?

[Martin Everson]

Konstanz said:
It will change sooner or later. EU will pressure when the first tax fraud cases appear in UAE.
I think we can expect these changes:
1. More difficult to get residence, by requiring real rental rental / property ownership. Real address. Not some fake address or stay at 'hotel'.
2. More monitoring on how long resident will have to stay to get tax residence certificate. 2 days will not be enough in the future.
3. Increased due diligence in banks.
4. Corporate income tax might appear in the future.
The existing model of 0% corporate tax cannot sustain forever.
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Thank you. Someone that actually gets it thu&¤#

Point 2 will come as a shock soon to some people. Been saying this for years on here. But like I always say people are gonna learn the hard way.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Golden Fleece]

Martin Everson said:
Thank you. Someone that actually gets it thu&¤#

Point 2 will come as a shock soon to some people. Been saying this for years on here. But like I always say people are gonna learn the hard way.
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Yes, this is why it is best just to live in a low-tax country and pay some reasonable amount of tax -- and to also have multiple residencies and bank accounts, because things can change with little notice. Just look at all the retirees forced to leave Ireland when it arbitrarily raised the minimum pension income to 50,000 Euros with no explanation.

 

[kingx321]

Fred said:
99% of the banks will give you a flat no without any Residence Visa and Emirates ID.

However if you bring 1m+$ in initial deposit with you we can start some conversations with smaller banks and the rest depends on the company and personal profile.

If the above is the case just send the company documents, bank statements of the company (if any), personal bank statement, your CV and company profile (3-4 lines about the purpose of the company) and your citizenship to [email protected] or use the Messenger via www.dls-dubai.com - in case you have a good Citizenship like Germany we can try some things.

However the best advise I can give you is that you get yourself a Residence Visa through an Onshore Dubai Company and once you have the Residence Visa and Emirates ID you have plenty of options even for your RAK ICC.
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Thank you for your answer!

If i get a residence visa through an onshore Dubai Company, do i have to live in Dubai or stay there a certain amount of time?

 

[Fred]

kingx321 said:
Thank you for your answer!

If i get a residence visa through an onshore Dubai Company, do i have to live in Dubai or stay there a certain amount of time?
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To keep the Residence Visa active you are required to be every 6 months for at least one day in the UAE.

You are all good if you come 2 days per year to the UAE.

Of course you need a reliable partner like us that works banking out for you.

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[BlueMist]

Martin Everson said:
Point 2 will come as a shock soon to some people. Been saying this for years on here. But like I always say people are gonna learn the hard way.
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I don't think you can get tax residence certificate from authorities for being just 2 days in a year!
The following documents must be attached:
- A copy of the passport + valid permit of residence
- A copy of ID card
- A certified copy of (residential) lease agreement
- Validated 6-month bank statement from a local bank
- Source of income/Salary certificate
- A report from the General Directorate of Residency and Foreigners Affairs specifying the number of days the resident has stayed in the UAE

 

[Fred]

BlueMist said:
I don't think you can get tax residence certificate from authorities for being just 2 days in a year!
The following documents must be attached:
- A copy of the passport + valid permit of residence
- A copy of ID card
- A certified copy of (residential) lease agreement
- Validated 6-month bank statement from a local bank
- Source of income/Salary certificate
- A report from the General Directorate of Residency and Foreigners Affairs specifying the number of days the resident has stayed in the UAE
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Just from practice experience they issue the certificate without staying 183+ days in the UAE.

However you are right that are the official requirements and it looks like they don't enforce them.

I think @Gediminas and @CaptK already mentioned that they made similar experience when it comes to the days of stay within the UAE and getting the tax residence certificate.

Don't want to motivate anybody to not follow what the GoV is mentioning public but to keep it fair I need to mention that we have plenty of examples with a shorter stay then 183+ days in the UAE.

However you definitely need Personal Bank Statement, Emirates ID and Residence Visa in Passport but for everything else it seems they don't take it that much serious.

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[Konstanz]

Fred said:
Just from practice experience they issue the certificate without staying 183+ days in the UAE.

However you are right that are the official requirements and it looks like they don't enforce them.

I think @Gediminas and @CaptK already mentioned that they made similar experience when it comes to the days of stay within the UAE and getting the tax residence certificate.

Don't want to motivate anybody to not follow what the GoV is mentioning public but to keep it fair I need to mention that we have plenty of examples with a shorter stay then 183+ days in the UAE.

However you definitely need Personal Bank Statement, Emirates ID and Residence Visa in Passport but for everything else it seems they don't take it that much serious.
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Everything works fine until you have official investigation by your home country.
Many things can happen. They can send official request to UAE to confirm if you really live there and they find out that your home address is fake.
They can get bank statements and see you don't spend money in UAE and your home country can claim your UAE residence is domicilation fraud to evade tax.
From UAE prospective everything in nice and easy.
Any introducer like you, should inform their clients about possible risks if they don't live in UAE and claim tax residence

 

[Fred]

Konstanz said:
Everything works fine until you have official investigation by your home country.
Many things can happen. They can send official request to UAE to confirm if you really live there and they find out that your home address is fake.
They can get bank statements and see you don't spend money in UAE and your home country can claim your UAE residence is domicilation fraud to evade tax.
From UAE prospective everything in nice and easy.
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Yes as a Dubai Expat living fulltime in the UAE I can always only mention the side of the UAE.

Still I see what people do in practice and how they get away with it.

As soon as this changes I will update all of you guys for sure - no question.

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[CaptK]

Fred said:
Just from practice experience they issue the certificate without staying 183+ days in the UAE.

However you are right that are the official requirements and it looks like they don't enforce them.

I think @Gediminas and @CaptK already mentioned that they made similar experience when it comes to the days of stay within the UAE and getting the tax residence certificate.

Don't want to motivate anybody to not follow what the GoV is mentioning public but to keep it fair I need to mention that we have plenty of examples with a shorter stay then 183+ days in the UAE.

However you definitely need Personal Bank Statement, Emirates ID and Residence Visa in Passport but for everything else it seems they don't take it that much serious.
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Just to add you need to pay yourself from the business account to your personal account, by way of dividend or salary.
It has to make senses and you should still behave how a normal person would with regards to business money and personal money

 

[glengoolie]

Golden Fleece said:
The problem is not taxes. The problem is confiscatory taxes. There is a huge difference between paying 5% to 15% in taxes and over 50% in taxes. Enjoy your life. Live where where you want. Pay a fair amount of tax.
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i think personal taxes are never the problem. most rich folk get money through dividends anyway. but coming from EUrope, the problem is always healthcare and social security and that together takes 50% of your income right away, just like that, puff, it's gone. i say they can get effd.

 

[Sols]

This thread is in the Offshore Company category and is about AML compliance/goAML and tax matters in UAE.

The UAE lifestyle discussion is interesting, and can be continued here (some posts moved over): Life in UAE advantages & disadvantages

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This is the probably the answer to your question.

 

[Michaelpitt]

Fred said:
Yes as a Dubai Expat living fulltime in the UAE I can always only mention the side of the UAE.

Still I see what people do in practice and how they get away with it.

As soon as this changes I will update all of you guys for sure - no question.
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I have UAQ FZ license and investor visa with the shiny flexi desk office.

Banks hate it and I am not able to get a bank account, neither personal (new ones are not possible, but I got one personal bank account from ENBD 2 years ago) nor a business bank account. How can I get a bank account? I am into the ecommerce space, no shady activity.

 

[Fred]

Michaelpitt said:
I have UAQ FZ license and investor visa with the shiny flexi desk office.

Banks hate it and I am not able to get a bank account, neither personal (new ones are not possible, but I got one personal bank account from ENBD 2 years ago) nor a business bank account. How can I get a bank account? I am into the ecommerce space, no shady activity.
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E-Commerce with Flexi Desk is considered high risk by all UAE banks nowadays. UAQ additional redflag.

Reach out via Mail to [email protected] or via Messenger on www.dls-dubai.com and send us some more detailed information and we check for you if it's possible to get you a Business Bank Account with this setup.

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[Michaelpitt]

Fred said:
E-Commerce with Flexi Desk is considered high risk by all UAE banks nowadays. UAQ additional redflag.

Reach out via Mail to [email protected] or via Messenger on www.dls-dubai.com and send us some more detailed information and we check for you if it's possible to get you a Business Bank Account with this setup.
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What FZ with Ecommerce activity is not a red flag? All of the FZ offer flexi desk only, or am I missing something?

 

[troubled soul]

Fred said:
E-Commerce with Flexi Desk is considered high risk by all UAE banks nowadays. UAQ additional redflag.

Reach out via Mail to [email protected] or via Messenger on www.dls-dubai.com and send us some more detailed information and we check for you if it's possible to get you a Business Bank Account with this setup.
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True , Very Easy to doing money laundering with E-Commerce, That's why Bank takes cautions.

Which Business Categories are good with Flexi Desk ? And bank easily accept it ?
Can you give the categories, It will Help.

Thanks.

 

[petal355]

CaptK said:
Just to add you need to pay yourself from the business account to your personal account, by way of dividend or salary.
It has to make senses and you should still behave how a normal person would with regards to business money and personal money
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You said otherwise on your message of 28 march, you mentionned about qualifying to the tax residence in UAE and obtaining the certificate if your company is not active (without bank, activity, thus without uae sourced salary as its what happened to many) :
I quote your 28 march message : "So long as you satisfy the time period you are automatically entitled to it."

I couldnt find testimonies whether people could fully secure and qualify their physical person tax residence in Uae in case their company wouldnt be used, for example if they have no bank account access, under a fake unused activity to behave as a mere visa provider for the physical person.

I was wondering, in case you dont have a work but are a mere trader, is it possible to buy a company that runs in uae and would grant you a director salary to secure your residence better than creating a dormant or fake activity ?
What price would it cost ? Im thinking buying a low cost hairdresser salon or whatever, lets say for 30k cash?

Last edited: Apr 14, 2021

 

[234628725]

petal355 said:
You said otherwise on your message of 28 march, you mentionned about qualifying to the tax residence in UAE and obtaining the certificate if your company is not active (without bank, activity, thus without uae sourced salary as its what happened to many) :
I quote your 28 march message : "So long as you satisfy the time period you are automatically entitled to it."

I couldnt find testimonies whether people could fully secure and qualify their physical person tax residence in Uae in case their company wouldnt be used, for example if they have no bank account access, under a fake unused activity to behave as a mere visa provider for the physical person.

I was wondering, in case you dont have a work but are a mere trader, is it possible to buy a company that runs in uae and would grant you a director salary to secure your residence better than creating a dormant or fake activity ?
What price would it cost ? Im thinking buying a low cost hairdresser salon or whatever, lets say for 30k cash?
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I'm not an expert, apologies if I am wrong.

I assume that you want to become non-resident in a high tax country by moving your centre of life to UAE.

Get familiar with law in that country. No certificate from UAE will save you. Under hypothetical investigation in your home country, it will become clear how much time you spent here and there. To stay safe aim for 183+ days/year in UAE, at least at the beginning. You don't need a job or residency certificate to be tax resident in UAE and/or to have centre of life in UAE.

Rather than buying a hairdresser salon, consider buying a cheap flat in UAE. It will be a better indicator confirming that your centre of life is in UAE.

You can be considered tax resident in more than one country if you don't cut ties to your home country.

Last edited: Apr 14, 2021

 

[Konstanz]

234628725 said:
I'm not an expert, apologies if I am wrong.

I assume that you want to become non-resident in a high tax country by moving your centre of life to UAE.

Get familiar with law in that country. No certificate from UAE will save you. Under hypothetical investigation in your home country, it will become clear how much time you spent here and there. To stay safe aim for 183+ days/year in UAE, at least at the beginning. You don't need a job or residency certificate to be tax resident in UAE and/or to have centre of life in UAE.

Rather than buying a hairdresser salon, consider buying a cheap flat in UAE. It will be a better indicator confirming that your centre of life is in UAE.

You can be considered tax resident in more than one country if you don't cut ties to your home country.
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It depends. Let's say home country has DTA agreement with UAE. It's enough to show that you don't have address/residence in home country, but you have permanent home address in UAE. However, if they check and see that you don't live in UAE, so the question were you live will arise. They can still say that it's domicilation fraud to avoid tax despite of DTA agreement. Everything depends on how much your home country is interested to tax you. If you have centre of life in UAE and stay some decent time there you should be fine.
As said having apartment in UAE would show some decent substance of residence.

 

[Golden Fleece]

Konstanz said:
As said having apartment in UAE would show some decent substance of residence.
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Another possibility is entering into a long-term lease that you can show your home country. Perhaps pay someone $200 to $400 per month for the use of their extra bedroom, with their knowledge that you will only visit a few times a year. That is like free money for them.

So, for less than $5,000 per year you have a long-term lease as proof of residency. Perhaps you could also join some local clubs and organizations as additional proof of ties to the country, along with a local driver's license. And if you use a second passport for most of your travels, your home country passport would only show a few travel stamps.

 

[Konstanz]

Golden Fleece said:
Another possibility is entering into a long-term lease that you can show your home country. Perhaps pay someone $200 to $400 per month for the use of their extra bedroom, with their knowledge that you will only visit a few times a year. That is like free money for them.

So, for less than $5,000 per year you have a long-term lease as proof of residency. Perhaps you could also join some local clubs and organizations as additional proof of ties to the country, along with a local driver's license. And if you use a second passport for most of your travels, your home country passport would only show a few travel stamps.
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You can but they see its 200$ rent agreement in UAE. They will understand that you don't live there