UAE clarification of Freezone Qualifying Income
- Thread starter joffreylol
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I understand this. Happens to me all the time.
People ask me this all the time about me and I have NO answer to it. Private bankers, investment bankers, lawyers, and accountants go crazy.
I do the following:
- Mr. Smith wants a product.
- He tells me.
- He discloses what he wants to pay for it.
- I question him and provide him with a sample or prototype.
- Once he approves it, I use my OWN money and acquire the product.
- I deliver it to Mr. Smith.
- Mr. Smith confirms and pays.
I have sooooooo many Mr. Smiths that I'm working 24/7. Sometimes, I wonder if professionals, bankers, lawyers etc, are just pulling my leg and playing stupid to try to "scam" (=sell me their financial product) me 🙄
https://u.ae/en/information-and-services/finance-and-investment/taxation/corporate-tax
Seems USA LLC only taxable If It conduct business in UAE....Hope this is the case....Finger crossed
Updated on 31 Jul 2023
Seems USA LLC only taxable If It conduct business in UAE....Hope this is the case....Finger crossed
Which, if you're resident in the UAE, it does.
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This is the probably the answer to your question.
Application For Clarification cost AED 1500.00.........🙁🙁🙁🙁 even website is super slow....You have to be very patient during process...
https://tax.gov.ae/en/services/tax.clarifications.request.aspx
https://tax.gov.ae/en/services/tax.clarifications.request.aspx
Managing a US LLC from UAE, closing contracts and getting paid doesn't mean conducing business in UAE?
LOL
You should apply if you don't want to find yourself on the wrong side of the dick.
Well I am not expert in this area but...
- Hiring UAE-based employees
- Renting office space in the UAE
- Advertising to UAE residents
- Selling goods or services to UAE residents
Hoping is a losing business strategy.
Invest those few AED and ask specifically if managing a US LLC from UAE selling outside UAE is tax exempt.
You'll find a definite answer.
It doesn't work that way.
If you manage your company from the UAE - you're taxed. (there are exemptions for qualifying income only and some exemptions for small businesses).
I'm pretty sure most people who moved to the UAE for tax reasons have more than 1M AED revenue, so we all will be taxed.
Corporate tax rates will be 0% on taxable income up to AED 375,000 and 9% on taxable income over AED 375,000
So, the first 375k is not taxed. Everything over is taxed by 9%
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I'm not a tax advisor, so please don't consider my posts here as tax advice. Always seek a professional opinion.
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Business Bank Account for your US LLC Remotely
Even this is NOT foolproof! I have seen agencies go to court against people they gave a letter to claiming that whoever wrote that letter on behalf of the agency had NO authority to bind the agency!
Exactly, most of people who moved there to really live generate more than 375 AED per year...
If you do business from UAE, you are taxed
Being resident in UAE can qualify that you do business from UAE
Probably either. If you spend a lot of time in UAE while actively running your US LLC, you're doing business there.
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This is the probably the answer to your question.
Good point. I assumed that seeking tax clarification from the agency would be a binding decision.
This is a very handwavy answer.
You could be resident but cant even get tax cert because not staying long enough and/or do not meet other requirements.
US LLCs aside, this information is both interesting and confusing:
- free zone businesses (The UAE CT regime will continue to honour the CT incentives currently being offered to free zone businesses that comply with all regulatory requirements and that do not conduct business set up in the UAE's mainland.)
Doing business from UAE and in UAE are surely two different things. From UAE implies doing business while physically there, while in UAE implies having UAE customers. It seems this clarification talks about the latter.
That is not clear at all.
There are two things at play. One is your own physical presence aka PE aka tax residence (not just residence). Second is customer-location.
People are mixing this up by not expressing it clearly.
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