How Many Board Meetings?

[Businessguy32]

How Many Board Meetings?



So I have a holding company with 20sqm office and secretary as well as a resident director in Dubai. Secretary gets 2000 dirham per month, director gets 4000 dirham per month.



I am the 100% shareholder. Up to now I have lived in Dubai but I want to move to another country that has a territorial tax system (Foreign sourced income is exempt from tax)



I already have a permanent lifetime residence visa in this country and own a house there. I will be spending probably 300 plus days in this country in reality.


Do I just have to fly into the AGM once a year?


Or Should I fly in for 4 board meetings per year and spend about a week in Dubai each time even though I am not a director? (as i guess i am the controlling person)


Is this structure solid or is there more substance I need to add?

It is just a holding company that receives dividends from subsidiaries in my home country in Europe.

 

[Sols]

One is probably enough if that is the only time the company makes decisions.

But if you are trying to avoid having the company be tax resident where you live/will live, check local law and how tax residence is defined. Ask a lawyer to confirm.

Your structure sounds fine. It might even be overkill for a holding company.

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This is the probably the answer to your question.

 

[Martin Everson]

As long as your company meets the economic substance rules below which is easy to check you should be fine.

https://assets.kpmg/content/dam/kpmg/ae/pdf-2021/07/economic-substance-regulations-in-the-uae.pdf
As a shareholder with your setup you can live in any territorial tax system and just collect the passive dividend income offshore with no tax issues in the territorial country as your just a shareholder.

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

 

[Businessguy32]

Martin Everson said:
As long as your company meets the economic substance rules below which is easy to check you should be fine.

https://assets.kpmg/content/dam/kpmg/ae/pdf-2021/07/economic-substance-regulations-in-the-uae.pdf
As a shareholder with your setup you can live in any territorial tax system and just collect the passive dividend income offshore with no tax issues in the territorial country as your just a shareholder.
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Hi Martin, yes but the dividend from my home country are taxed at 25% witholding tax for an individual unless it is paid out to a company that is located in a tax treaty country. In that case, the witholding tax is exempt as it is taxed in the other contracting state, which is the UAE. The most important thing is that this UAE Company is "EFFECTIVELY MANAGED" in the other contract state which is the UAE, so I am just making sure my boxes are ticked correctly before I retire to paradise and not set myself up for some unpleasant shock in the future!!!