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New Horizons Paraguay
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Does the new UAE CT applies to day tradings

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Exactly, 'do business'.

Trading your own money is very‍ far from 'doing business', thats my point.

I lived in ES for years and you never, by︀ any chance, can get taxed as a corp for trading crypto. As a matter of︁ fact its never considered PIT neither it holds as CGT there regardless of frequency. Dunno︂ about the rest.

Sure, they can say whatever they want however I (using myself as an example) am︉ not a separated entity from myself, and got no clients so this ruling wouldn't hold︊ in court imo.

This I can imagine for︍ Spain tho, they make you pay 'autonomos' so you pay SS but this is not︎ the same as CIT.
 
not necessary you are considered as company. In many countries if you do business︂ as physical person you pay personal income tax on top social taxes.

in UAE case︃ they clearly say CIT is applicable if you do business. And yes if you do︄ day trading it's business. No necessary you need to have "customers". For example, they already︅ explained that if you do real estate business as physical person in UAE, you pay︆ CIT

Many people thought that this UAE CIT will be just formality but we clearly︇ see that they intention is to find new ways of taxing business besides VAT
 
Indeed. This is the salient point. It's not about a change in how a⁠ person is viewed legally. You're still a natural person. It's just that an activity can⁤ be considered a business activity and taxed as such.
 
Sadly, as other members mentioned, many countries can and‍ will requalify your personal trading activity as business and tax it as such, especially if⁠ it's your one and only or main income source.
That's one reason why people incorporate⁤ their self-trading activities.
 
Yes that's unfortunately exactly the point.

It doesn't make sense in the first place, but‌ if you dig deeper into their understanding and it is your main source of income,‍ you'd be considered doing a business activity (no matter if you're incooperated or not)

@CryptoAnt: That you didnt get taxed in Spain, doesnt mean its evidence there's no tax --⁠ just noone looked into it.

For the moment, as far as I read until now,⁤ it's not clear if active trading wont be considered a business activity (no matter if⁣ you're incooporated, which visa your on, if its only your money and so on).

Please look into the Guide called 'Taxation of natural persons' on the FTA website and cite⁢ where it's clear you wouldnt be taxed on your personal trading?
https://tax.gov.ae//Datafolder/Files/Guides/CT/Taxation of natural persons︀ - 25 11 2023.pdfI read it many times and unfortunately it's not clear to︁ me.

I'd be happy of course private active trading of personal funds wont be considered︂ liable for corp tax purposes.
 
If this⁠ is the case... Im gonna get real sad.

All legal options are disappearing; at this⁤ point Im gonna have to resort to play the 'mismanaged place' card.
 
AFAIK, it's a fringe thing meant to capture people who do⁠ it at a scale or in a manner that's commercial or business like. As mentioned,⁤ when it's done is mainly to capture social security contributions. Sales tax/VAT is another tax⁣ they like to capture when classifying some hobby/personal activities as business.

The average or even⁢ above average retail investor is likely not targeted by any of this.

But it's something︀ to be mindful of if you're approaching professional level.
 
This ship is long sailed for me, and my (legal) options are⁠ getting reduced almost by the day.
 
General reasoning. Not enough clarity on the disaster that is UAE's rollout of taxation to comment‌ specifically on that jurisdiction.
 
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