IMO UAE could survive a︀ small corporate tax like 5% but not much higher. And well a personal tax would︁ be suicide for UAE lol. Without expats you could literally just close down whole UAE︂ or integrate it into KSA lmao
Corporate tax in UAE ‘is going to happen’
- Thread starter JustAnotherNomad
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I would expect at least 10% or more corporate tax rate to remove tax haven status.
Also:
UAE businesses need to soon be in sync with 'Economic Substance Regulations'
Also:
UAE businesses need to soon be in sync with 'Economic Substance Regulations'
Businesses already have vat of 5 percent. They are already suffering due to Corona and could not survive Covid and shut down now. They will just leave. Already happened with implementation of VAT in 2018 when plenty of companies left for 0 tax havens as evident by closure of Ajman freezone office in Dubai. It will be like suicide.︀ Remember tax attorneys and CPAs want to keep doing this to make their $$ and︁ that is why we see IRS gaining nothing from overseas taxes on its citizens living︂ overseas. Only the compliance industry in USA is happy. US didn't sign on OECD treaty︃ to share but shoved it on every govt threatening them with their correspondence accounts in︄ USD. Many trusts, corporations, wealthy rich from many EU and the rest of the world︅ moved their offices from Switzerland to gain 0 percent taxation and reporting. The information is︆ available out there. This was just to get money from the rest of the world︇ to deposit in its banks and keep their economy floating.
Well the 5% VAT was still fine for people who were not doing business in the︅ Gulf Area due its only charged when you make business with other GCC countries
Why would we choose then UAE over lets say ireland with︈ 12.50%. Unless you do business in UAE there is no real reason to stay there︉ then with yout company
Why would we choose then UAE over lets say ireland with︈ 12.50%. Unless you do business in UAE there is no real reason to stay there︉ then with yout company
Davis123 said:
Businesses already have vat of 5 percent. They are already suffering due to Corona and could not survive Covid and shut down now. They will just leave. Already happened with implementation of VAT in 2018 when plenty of companies left for 0 tax havens as evident by closure of Ajman freezone office in Dubai. It will be like suicide. Remember tax attorneys and CPAs want to keep doing this to make their $$ and that is why we see IRS gaining nothing from overseas taxes on its citizens living overseas. Only the compliance industry in USA is happy. US didn't sign on OECD︀ treaty to share but shoved it on every govt threatening them with their correspondence accounts︁ in USD. Many trusts, corporations, wealthy rich from many EU and the rest of the︂ world moved their offices from Switzerland to gain 0 percent taxation and reporting. The information︃ is available out there. This was just to get money from the rest of the︄ world to deposit in its banks and keep their economy floating.
Well EU citizens can but not the rest of the world can move to︊ Ireland easily like UAE and by far Ireland is superior. If Ireland can give residencies︋ like UAE we will all move to Ireland. Then EU might be happy but UAE︌ will loose.
Businesses already have vat of 5 percent. They are already suffering due to Corona and could not survive Covid and shut down now. They will just leave. Already happened with implementation of VAT in 2018 when plenty of companies left for 0 tax havens as evident by closure of Ajman freezone office in Dubai. It will be like suicide. Remember tax attorneys and CPAs want to keep doing this to make their $$ and that is why we see IRS gaining nothing from overseas taxes on its citizens living overseas. Only the compliance industry in USA is happy. US didn't sign on OECD︀ treaty to share but shoved it on every govt threatening them with their correspondence accounts︁ in USD. Many trusts, corporations, wealthy rich from many EU and the rest of the︂ world moved their offices from Switzerland to gain 0 percent taxation and reporting. The information︃ is available out there. This was just to get money from the rest of the︄ world to deposit in its banks and keep their economy floating.
Well EU citizens can but not the rest of the world can move to︊ Ireland easily like UAE and by far Ireland is superior. If Ireland can give residencies︋ like UAE we will all move to Ireland. Then EU might be happy but UAE︌ will loose.
So then everybody will go to Qatar instead? If the UAE makes itself less attractive, someone else will profit.
Qatar indeed is weird and boring as hell, even Saudi is more fun tbh. Qataris are very arrogant and narrow minded. Well Al Thani means "the second ones", so they are named like that for a reason lol
Wow! I never would’ve guessed that UAE would come to this. Well, such is life.
Personally, I don’t think any legit business would want to stay in that expensive desert with a tax rate. @Martin Everson is right. They’ve spent too much time in lockdown in that desert, they’ve gone nuts.
Also, thx for OP for sharing.
Personally, I don’t think any legit business would want to stay in that expensive desert with a tax rate. @Martin Everson is right. They’ve spent too much time in lockdown in that desert, they’ve gone nuts.
Also, thx for OP for sharing.
I would not be surprised if the corporate income tax affected businesses that do local business, like with VAT. Let them tax the malls a bit more, it won’t kill them.
But the moment they start taxing international businesses, I’m sure it would backfire.
But the moment they start taxing international businesses, I’m sure it would backfire.
Thats the whole point of these actions being taken against UAE the Caribbean etc - to remove those countries competitive advantage 😕. Then later force them into a system of debt servitude to weaken their independence.
Yes EU is eyeing Ireland's tax practices. Harmonizing taxes across EU with a minimum tax rate is almost certain with proposals going on for a global solution. They will start with multinational companies before reaching smaller companies. And you know how it goes just like CRS if you don't sign up for it then expect that country to be on a blacklist at some point in time 😕.
Pillar Two: global effective minimum taxation
Minimum effective tax rate on global multinational profits | VOX, CEPR Policy Portal
--- start quote︀
A minimum effective tax of 20% on multinationals’ foreign profits would dampen fiscal competition across︁ countries by reducing the incentive of low- or no-tax jurisdictions whose effective tax rate is︂ below this rate. A 20% minimum tax should also reduce the incentive of firms to︃ locate in these countries as long as profit shifting implies positive costs.
--- end quote︄
Pillar Two: global effective minimum taxation
Minimum effective tax rate on global multinational profits | VOX, CEPR Policy Portal
--- start quote︀
A minimum effective tax of 20% on multinationals’ foreign profits would dampen fiscal competition across︁ countries by reducing the incentive of low- or no-tax jurisdictions whose effective tax rate is︂ below this rate. A 20% minimum tax should also reduce the incentive of firms to︃ locate in these countries as long as profit shifting implies positive costs.
--- end quote︄
I think if they introduce CIP it would be at least 9%. At least a minimum what EU has.
Anyway, this would be the start of the end of Dubai, UAE what we know of.
The personal income tax would remain at 0%. But I don't believe many expats would have this motivation to move there only about personal income tax.
What do you think?
Anyway, this would be the start of the end of Dubai, UAE what we know of.
The personal income tax would remain at 0%. But I don't believe many expats would have this motivation to move there only about personal income tax.
What do you think?
I don’t think anything like that would happen. I feel that the UAE government is well aware why everyone is there. Quite the opposite, I feel that even the substance regulations are only lip service. So now you need to have a proper office and not a flexi desk solution for your company. So they have all these empty offices. Everybody knows they don’t care.
KSA tripled the VAT - the UAE didn’t follow.
I would think they will probably implement some CIT, but it will be territorial or only apply to transactions GCC transactions. They can’t be so stupid to kill the only thing they have going for themselves.
Also, even if they introduce CIT - so what, then︀ you just use a UK LLP or some other structure that is taxed on the︁ partner level.
I’m sure the Apple Store in the Dubai Mall will survive some CIT.︂
KSA tripled the VAT - the UAE didn’t follow.
I would think they will probably implement some CIT, but it will be territorial or only apply to transactions GCC transactions. They can’t be so stupid to kill the only thing they have going for themselves.
Also, even if they introduce CIT - so what, then︀ you just use a UK LLP or some other structure that is taxed on the︁ partner level.
I’m sure the Apple Store in the Dubai Mall will survive some CIT.︂
We will see how it goes, but under this pressure of EU it could well be back on the blacklist again if they don't introduce CIP.
It's not only about UAE, but rather EU politics sitting in Brussells and Strasbourg. UK is now Brexit and don't have voice to backup UAE
It's not only about UAE, but rather EU politics sitting in Brussells and Strasbourg. UK is now Brexit and don't have voice to backup UAE
Malls are affected by Corona so much already. They do realize the economic effects by studying net flow of traffic and low amount of VAT collected. UAE govt has told landlords to delay their service charge payments to developers for one year. Don't know how this Covid 19 will end up.
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