If the US LLC is owned by the UAE company, then there can be up to 30% branch profit tax in the US.
Questions about UAE Freezone
- Thread starter kurosaki4d
- Start date
- Status
Your answer does actually help a lot more than you know 😀 Thanks a ton.
You assumed right, I have no partners or businesses in the UAE, mostly︄ in the US.
However, I'm confused, why did you need to create a US LLC?︅ Wouldn't it be easier to withdraw from your affiliate partners/platforms directly into your UAE bank︆ account with no intermediary? (is there something I'm missing here ?)
This is huge.︎ Indeed it makes all the difference in the world. Thanks for bringing that to our️ attention.
So, just to confirm, affiliate marketing activities will be subjected to the 9% tax no matter what? right?
If it is not in the "Accepted Activities", then where is it in the "Excluded Activities"?
I hear that there are different tax laws and exemptions across other free zone cities in UAE. Does this new law of activities apply to all those cities?
You assumed right, I have no partners or businesses in the UAE, mostly︄ in the US.
However, I'm confused, why did you need to create a US LLC?︅ Wouldn't it be easier to withdraw from your affiliate partners/platforms directly into your UAE bank︆ account with no intermediary? (is there something I'm missing here ?)
This is huge.︎ Indeed it makes all the difference in the world. Thanks for bringing that to our️ attention.
So, just to confirm, affiliate marketing activities will be subjected to the 9% tax no matter what? right?
If it is not in the "Accepted Activities", then where is it in the "Excluded Activities"?
I hear that there are different tax laws and exemptions across other free zone cities in UAE. Does this new law of activities apply to all those cities?
Correct, but if there are US clients, there is a risk that the IRS will say you have "activity in the US" (ECI).
A lot of people fly under the radar, but it's a risk. You can completely avoid that risk by either not having US clients or owning a US LLC as a person instead of as a company.
A lot of people fly under the radar, but it's a risk. You can completely avoid that risk by either not having US clients or owning a US LLC as a person instead of as a company.
I quote from Ministerial Decision 139:
Article (3) Excluded Activities︇
1. For the purposes of Cabinet Decision No. 55 of 2023 referred to above, the︈ following activities shall be considered Excluded Activities:
(a) Any transactions with natural persons, except transactions︉ in relation to the Qualifying Activities specified under paragraphs (d), (f), (g) and (j) of︊ Clause (1) of Article (2) of this Decision.
Article (2) Qualifying Activities
1. For the︋ purposes of Cabinet Decision No. 55 of 2023 referred to above, and subject to Clause︌ (2) of this Article and Article (3) of this Decision, the following activities conducted by︍ a Qualifying Free Zone Person shall be considered Qualifying Activities:
(d) Ownership, management and operation︎ of Ships.
(f) Fund management services that are subject to the regulatory oversight of the️ competent authority in the State.
(g) Wealth and investment management services that are subject to the regulatory over sight of the competent authority in the State.
(i) Treasury and financing services to Related Parties.
How can the "affiliate marketing" provided to individuals be CIT free then?
Article (3) Excluded Activities︇
1. For the purposes of Cabinet Decision No. 55 of 2023 referred to above, the︈ following activities shall be considered Excluded Activities:
(a) Any transactions with natural persons, except transactions︉ in relation to the Qualifying Activities specified under paragraphs (d), (f), (g) and (j) of︊ Clause (1) of Article (2) of this Decision.
Article (2) Qualifying Activities
1. For the︋ purposes of Cabinet Decision No. 55 of 2023 referred to above, and subject to Clause︌ (2) of this Article and Article (3) of this Decision, the following activities conducted by︍ a Qualifying Free Zone Person shall be considered Qualifying Activities:
(d) Ownership, management and operation︎ of Ships.
(f) Fund management services that are subject to the regulatory oversight of the️ competent authority in the State.
(g) Wealth and investment management services that are subject to the regulatory over sight of the competent authority in the State.
(i) Treasury and financing services to Related Parties.
How can the "affiliate marketing" provided to individuals be CIT free then?
Wow, what a shitshow. The funny thing is, even for freelancers, some freezones give you an "investor" visa, and then you have to declare the UBO of your freelance business. And if it's true that you can't even pay yourself a salary on a freelance visa... lol.
lol .. they published a half baked law that doesn't really make sense for many cases. Hope they make iterations to it to make sense for freezones and freelancers that don't conduct business in UAE.
I just registered my company here about 3 weeks ago, then after getting my personal/business bank accounts setuped︀ and all that, I started having a remorse synonym lol.
Do you have partners on your business? Or Is it just you?
I just registered my company here about 3 weeks ago, then after getting my personal/business bank accounts setuped︀ and all that, I started having a remorse synonym lol.
Do you have partners on your business? Or Is it just you?
That's correct - they did mess up your Residence Visa then.
Because we did your Setup and strucured everything in the right way.
Getting an Investor Visa through a Freezone Company almost never makes sense - unless you need to have it for home country immigration like Phillipine Citizens - it has only downside with Banking,︀ Insurance and now with structuring 0% Corporate Tax.
Because we did your Setup and strucured everything in the right way.
Getting an Investor Visa through a Freezone Company almost never makes sense - unless you need to have it for home country immigration like Phillipine Citizens - it has only downside with Banking,︀ Insurance and now with structuring 0% Corporate Tax.
How can I employ myself? Like what would be the setup?
Maybe next year before renewal - I just setup-ed and got my visa less than a month ago. I don’t want to pay another 16-20K AED for this again.
Will it be easy to migrate the company to another freezone with the same name, banking .. etc?
Maybe next year before renewal - I just setup-ed and got my visa less than a month ago. I don’t want to pay another 16-20K AED for this again.
Will it be easy to migrate the company to another freezone with the same name, banking .. etc?
I think if you are making less than $300-500k/yr in Dubai, it might not even be worth it though. Due to such high cost of living. Unless you're willing to grind it out at a 35m2︀ studio for $1k/mo. You'll be paying tax indirectly in everything else. $60 for a round︁ trip Uber to the mall, $50 per meal out (for a single person) etc. To︂ live a decent life, 1-2 bedrooms, eat out whenever you want etc, you'll easily spend︃ $20k/mo here in Dubai vs $5k/mo in SEA or something.
Open to reasons why this︄ might be incorrect way of thinking...
Open to reasons why this︄ might be incorrect way of thinking...
Id say around $ 10k/month. 5 is on the low end. Its not even 20k aed which disappear very fast.
- Status