In order to claim the payments from the company to you as dividends, you can't do anything for the business. Otherwise you're considered as a "foreign employee" of the company and you must pay a flat tax rate of 12% on your income (using a separate business in another country could help but it depends)... What most people do is that they assign themselves a local rate salary for managing the business (for example ~50k a year) so they only pay 12% on that and later in a few years they withdraw︀ the earnings
Dubai is dead, any alternative to the free zone 9% tax?
- Thread starter JonnyStekkino
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second that, can't see why it is a huge problem to pay tax below 10% from your profits in the company which easily can︀ be reduced.
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.
Pretty much everything else is taxed, including social media marketers, influencers, drop shippers and the like.
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
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
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.
do you have this somwehere officially please?︄
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?︄
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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