just fyi , this is only for the first 2 mil hkd , after that would be taxed at ~16% ish . The most difficult and time consuming part is also getting bank account
Dubai is dead, any alternative to the free zone 9% tax?
- Thread starter JonnyStekkino
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You seem a little late to the party sadly. This is not true unless the FZ company does a qualified activity + have PE in dubai.
When it comes to TAX in Dubai, mainland companies pay tax. For Freezones nothing has been implemented officially yet.
second that, can't see why it is a huge problem to pay tax below 10% from your profits in the company which easily can be reduced.
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Wake up we are in 2024 and since 6 months everybody knows that free zone has to register for CIT and pay it for unqualified activities.
The qualified activities are essentially: Manufacturing of goods and materials, shipping, reinsurance, aircraft leasing, regulated fund/investment management, logistics services, and holding companies.
Pretty much everything else is taxed, including social media marketers, influencers, drop shippers and the like.
Agree, the problem is not really the 9% but it is all the reporting / auditing that is attached to that, making it a whole mess
If you mean for Dubai Freezones then there is no auditing requirement unless the company is one of the qualifying activities (0% tax).
And, if your revenue (not profit) is under 3 million AED then you can report on a cash basis only, so no real accounting necessary, only keeping proof of relevant invoices, bank statements etc.
Further details: Corporate Tax FAQ ”“ Ministry of Finance ”“ United Arab Emirates
Thanks. Reason for me to find it interesting is that RO is part of the EU and therefore it could proof to be convenient with VAT. Ill look into the substance part.
where you mean "there" it's first time i hear this... you must not do anything for the company to get dividends otherwise you are considered as employee. is this generic rule? or in a specific country? and which?
thank you
Wrong! 9% for every company, offshore, onshore, mainland etc! I think it's over the 375K AED (that makes over 90K USD?. Then 9%.
Unless something changed again.
Indeed, seems that Dubai is dead.
I am talking about the offshore Rak/Asjman, Jebel Ali etc.
Last edited: Jan 24, 2024
thank you
Wrong! 9% for every company, offshore, onshore, mainland etc! I think it's over the 375K AED (that makes over 90K USD?. Then 9%.
Unless something changed again.
Indeed, seems that Dubai is dead.
I am talking about the offshore Rak/Asjman, Jebel Ali etc.
do you have this somwehere officially please?
Last edited: Jan 24, 2024
I've evaluated romania but it's just too hassle: non english papers or support, a lot of bureaucracy, substance needed etc.. at the end you really better keep Dubai and try to minimize the profits to the minimum.
Also considering the 9% is on what is over 375k AED, so very much depends on the revenue.
I'm very curious about Bahrain too, seems like starting a company there is around 1.5k USD, and so far it's completely tax free.
Anyone had experience with Bahrain? How's the accounting/things required there?
Also considering the 9% is on what is over 375k AED, so very much depends on the revenue.
I'm very curious about Bahrain too, seems like starting a company there is around 1.5k USD, and so far it's completely tax free.
Anyone had experience with Bahrain? How's the accounting/things required there?
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