Is an LLP or an LLC a way to avoid corporate tax in UAE?

[mgs999999999]

Let's assume the following hypothetical situation:

I have a company in the UAE, I am a tax resident there but I have 2 companies, 1 in the UAE, and another, a LLC in the US or a LLP in the UK.
Let's assume I have 100k benefit in the UAE company and the rest from the LLC or LLP, since there is no personal tax in the UAE, would that be a way to escape from the corporate tax in the UAE?

Best wishes,

 

[sinos]

mgs999999999 said:
Let's assume the following hypothetical situation:

I have a company in the UAE, I am a tax resident there but I have 2 companies, 1 in the UAE, and another, a LLC in the US or a LLP in the UK.
Let's assume I have 100k benefit in the UAE company and the rest from the LLC or LLP, since there is no personal tax in the UAE, would that be a way to escape from the corporate tax in the UAE?

Best wishes,
Click to expand...

If both US LLC and UAE LLC (ha FZ company) have a qualifying activity (qualifying activity as per UAE CT rule) as a source of income, then , yes, in that case 0% tax.

 

[mgs999999999]

I think the qualifying income is irrelevant for my question

 

[Konstanz]

mgs999999999 said:
Let's assume the following hypothetical situation:

I have a company in the UAE, I am a tax resident there but I have 2 companies, 1 in the UAE, and another, a LLC in the US or a LLP in the UK.
Let's assume I have 100k benefit in the UAE company and the rest from the LLC or LLP, since there is no personal tax in the UAE, would that be a way to escape from the corporate tax in the UAE?

Best wishes,
Click to expand...

No, LLC /LLP would have to pay tax in UAE

 

[mgs999999999]

Konstanz said:
No, LLC /LLP would have to pay tax in UAE
Click to expand...

Why? LLC/LLP are not pass though entities? Should it not be considered “personal income” instead of “corporate income”?

 

[Konstanz]

mgs999999999 said:
Why? LLC/LLP are not pass though entities? Should it not be considered “personal income” instead of “corporate income”?
Click to expand...

If it's business income it will be taxed even on personal level. As talked a lot. Both companies and individuals are liable of CIT

 

[mgs999999999]

Thanks.

Then, just for being tax resident in the UAE I will have to pay corporate taxes in the UAE for all the companies I own worldwide?

 

[Konstanz]

mgs999999999 said:
Thanks.

Then, just for being tax resident in the UAE I will have to pay corporate taxes in the UAE for all the companies I own worldwide?
Click to expand...

Not for all. Only if you manage them out from UAE and they don't have substance in other countries