Hello dear forum users,
FYI:
I have a RAK ICC limited company (Offshore) by shares in the UAE and also my company bank account is in Dubai, but I live privately in Asia in a country where income tax only applies if the source of income is in the country, but if the income comes from sources abroad not taxable (by law, foreigners are only required to file an income tax return if income is earned with a domestic source, such as a hotel, restaurant or other local business, with domestic customers and domestic payment but not if the source of income is from abroad).
Basically I am of course never on-site in Dubai, I have no employees there either, just the registered office via the agent.
I do online marketing with my company (no clients from the UAE, only Europe!!) and can work from anywhere in the world. But to be able to write invoices to my customers - especially from an internationally recognized location and that I do not always have to found a company in my home town if possible I change it often, I founded the offshore company in Dubai which was ideal for me Of course also because of the other known advantages of a RAK ICC so various tax advantages and that I do not have to do any more bookkeeping, etc.
The fact that I am not allowed to do business in Dubai was not relevant for me, since all my clients are in Europe.
Basically I am of course never on-site in Dubai and I have no employees there either, just only the registered office via the agent.
As you all know there is the economic substance requirements for companies Economic Substance Regulation of UAE | Lexology and also in the UAE.
Now, however, my company was renewed for another year by my agent in October 2019 and I was not informed by the agent about any news.
But based on the information I find on the internet, I would have to build up substance in Dubai now, right? So, according to the information on the Internet, questions about my company should be answered by me now. But as I wrote to you, I have not received any information from the agent yet.
So I wrote to my agent on Wednesday. He usually responds within 24 hours, but strangely enough, not this time. Of course, now I'm wondering what's going on.
The fundamental question now, of course:
- If the new rules apply to my company as well, I think very probably yes
- What happens if I cannot build up a substance in the UAE? I have to close the company?
- If I have to close the company, where should I open a company at all?
I must also mention: So far my customers are only in Belgium and Switzerland and my customers have never complained that the invoices from my RAK ICC companies are not recognized by their tax authorities. But this is probably also because Belgium and Switzerland have no foreign tax law (CFC Rules) or maybe a RAK ICC gives the tax authorities the impression of a normal company by the addition of a "Limited" and they do not think that this company could be offshore?
What do you think about it? I hope there are some experienced users here who can give you tips and advice.
I can't imagine that I am the only one who has this problem now. There are many digital nomads who can work from anywhere in the world and this is where an offshore company made sense, didn't it? But vice versa, it would mean that it is basically no longer possible NOT to have your company at your place of residence (i.e. if you don't want to build up substance at the company's location)
Thanks for your help!
BR
FYI:
I have a RAK ICC limited company (Offshore) by shares in the UAE and also my company bank account is in Dubai, but I live privately in Asia in a country where income tax only applies if the source of income is in the country, but if the income comes from sources abroad not taxable (by law, foreigners are only required to file an income tax return if income is earned with a domestic source, such as a hotel, restaurant or other local business, with domestic customers and domestic payment but not if the source of income is from abroad).
Basically I am of course never on-site in Dubai, I have no employees there either, just the registered office via the agent.
I do online marketing with my company (no clients from the UAE, only Europe!!) and can work from anywhere in the world. But to be able to write invoices to my customers - especially from an internationally recognized location and that I do not always have to found a company in my home town if possible I change it often, I founded the offshore company in Dubai which was ideal for me Of course also because of the other known advantages of a RAK ICC so various tax advantages and that I do not have to do any more bookkeeping, etc.
The fact that I am not allowed to do business in Dubai was not relevant for me, since all my clients are in Europe.
Basically I am of course never on-site in Dubai and I have no employees there either, just only the registered office via the agent.
As you all know there is the economic substance requirements for companies Economic Substance Regulation of UAE | Lexology and also in the UAE.
Now, however, my company was renewed for another year by my agent in October 2019 and I was not informed by the agent about any news.
But based on the information I find on the internet, I would have to build up substance in Dubai now, right? So, according to the information on the Internet, questions about my company should be answered by me now. But as I wrote to you, I have not received any information from the agent yet.
So I wrote to my agent on Wednesday. He usually responds within 24 hours, but strangely enough, not this time. Of course, now I'm wondering what's going on.
The fundamental question now, of course:
- If the new rules apply to my company as well, I think very probably yes
- What happens if I cannot build up a substance in the UAE? I have to close the company?
- If I have to close the company, where should I open a company at all?
I must also mention: So far my customers are only in Belgium and Switzerland and my customers have never complained that the invoices from my RAK ICC companies are not recognized by their tax authorities. But this is probably also because Belgium and Switzerland have no foreign tax law (CFC Rules) or maybe a RAK ICC gives the tax authorities the impression of a normal company by the addition of a "Limited" and they do not think that this company could be offshore?
What do you think about it? I hope there are some experienced users here who can give you tips and advice.
I can't imagine that I am the only one who has this problem now. There are many digital nomads who can work from anywhere in the world and this is where an offshore company made sense, didn't it? But vice versa, it would mean that it is basically no longer possible NOT to have your company at your place of residence (i.e. if you don't want to build up substance at the company's location)
Thanks for your help!
BR
