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Does UAE classify foreign companies as local Taxable residents?

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Yeah, nobody knows how the UAE will apply and enforce effective⁣ managent and control rules.

From the UAE Tax Guide excerpt posted earlier in this thread,⁢ it does seem like if one owns 100% of a US LLC and lives in︀ the UAE, the US LLC would not be subject to UAE corp tax if it:︁

-Has some board members that dont live in the UAE, preferably in some not so︂ expensive country.
-Has all board meetings outside the UAE, and document the board meetings properly︃ including of course with place and time.
-Has a General Manager that doesnt live in︄ the UAE
-The Tax Guide doesnt mention it, but I would assume it would help︅ to have an office outside the UAE, and no office in the UAE
 
what about people who only have residency on paper (living 30-45 days per year) in‌ the UAE, and owning an offshore company where they are directors?
are they safe from‍ this?
 
Yeah, then it is just a foreign company with⁠ a director/owner that happens to visit the UAE for a while without becoming tax resident.⁤ Then it's no tax and no reporting requirements.

I think this is the case up⁣ to 180 days, but could be 90 days.
 
At the moment, while there are no specifics clarified, I think it is worth taking care︂ of proper record keeping - decisions, contracts, resolutions, minutes, etc. - all of these should︃ be officially documented outside the UAE. Of course, this raises a new question - what︄ if all this happens remotely via the Internet within the corporate infrastructure located in another︅ country.

What if, say, the company's formal articles of association restrict the director from conducting︆ any administrative affairs related to the control and management of the company while he is︇ in the UAE?

I have yet to see how such complex conditions could be investigated︈ by the tax authorities.

It would be really useful to hear the actual experience of︉ those who have already gone through the process of dealing with the tax authorities of︊ any other country due to the fact that they have determined a permanent establishment, based︋ only on the director's residence in that country.
 
Note that US LLC's don't have a⁢ board or directors, they only have members (owners) and a manager (who may be, but︀ is not required to be a member). I assume the equivalent to the corporation concept︁ here would be to have a manager who is not resident in the UAE, but︂ this is not the same as the corporation/director setup with respect to control of the︃ entity.
 
Just do a contract of employment between yourself and your company, then use that contract‌ to apply for a Freelance visa, they have introduced a remote workers visa in the‍ UAE recently it costs approx. 1500 USD, it is purely for those who work remotely⁠ for a non UAE entity, but in order to get it you must have a⁤ contract of remote working with said company, I live in the UAE now having moved⁣ from the UK happy to have a chat.
 
works if⁢ you have substance elsewhere, i doubt it will stand up to scrutiny if you are︀ 100% shareholder/ubo and director. If you have other shareholders, a director elsewhere I can see︁ this fixing most issues.
However, its a great way to get a residency visa and︂ stay up to 90 days / year to avoid above mentioned issues.
 
TRC for international taxation only after 180 days and TRC after 90 days for domestic purpose‌ i.e. UAE banks and other institutions.

The said company UBO matters, if its you in the end,︁ then that non-UAE company is deemed to be UAE resident, Again, please go through "Related︂ Party Transactions" very carefully so as to determine whether the agreement that you propose stands︃ the scrutiny of "related party transaction".
Residency only︇ on papers doesn't work as of now, any UAE entity without economic substance gets reported︈ to UBO's current tax resident country. This has started from FY 2022. There is zero︉ escape.
 
What's your source for‍ this? From page 24 & 25 of UAE Corporate Tax Guidance issued by UAE Federal⁠ Tax Authority, the key factor is where decisions are taken, i.e. where the decsion makers,⁤ (the directors/board members/delegated General Manager) are when they take the decisions. Where these decision makers⁣ are resident also matters somewhat. But where a UBO that isnt a decision maker lives⁢ does not seem to be a factor.
The question here was about a non UAE entity. Say a German living in Germany︃ and being a tax resident in Germany and having a German compnay. That German company︄ will not become subject to UAE corp tax just because the German owner spends 30︅ days in the UAE and gets an Emirates id.
 
It was a reply to a previous post. Quoting it again for you:

What do you︄ say about the above post? Is it workable as per "Related Party Transaction? Where did︅ I say anything about decisions? Have you read the OP? All my previous answers are︆ based on the OP and not any hypothetical situation which you are bringing up again︇ and again. Please be on topic. I am going to quote the OP - as︈ all my previous answers were based on the issue presented in that OP - quoting︉ it below in case you missed it.
 
So we juste have to exchange AED with USDT / USDC hold it⁠ 12 months to avoid to pay taxes if benefits is higher than 375k AED ?⁤
 
Yes but at first it’s benefits right so you pay tax and then you invest‍ your benefits ? You can’t deduce benefits by buying stablecoins ??
 
Ok you are focusing on the [paying salary and dividends from the foreign company to︀ a UAE resident]-part of the OP post.

I focused on the part of the OP︁ post that relates to whether the foreign company is tax resident in the UAE or︂ not. I think this is the key and most interesting question, all the rest kind︃ of follows from this.

But generally paying salary from your company to yourself comes under︄ GAAR rules in UAE, not under Related Party Transaction rules I think.
And in most︅ of the world you can pay as much salary, distributions and dividends from your own︆ company to yourself as you want, but tax treatment may vary.

And getting a remote︇ worker visa for the UAE using a foreign company that you own is very possible,︈ but doesnt impact tax treatment directly.
 
Companies tax resident elsewhere, but operating in⁠ UAE are exempt from economic substance regulations in UAE.
 
It depends, it could be

in UAE‍ CIT is up to 9%
In Qatar, CIT is generally 10%
 
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