Tax on trading in the UAE
- Thread starter Tom85
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I don't know if DWTC would allow this to be used for crypto trading, but if so would a "Single Family Office" help?
https://www.dwtc.com/en/free-zone-family-offices/
https://www.dwtc.com/en/free-zone-family-offices/
You can have business activity "Proprietary trading in crypto commodities" but this is an unregulated activity, so the big question seems to remain: Is it exempt from CIT?
I mention the SFO/MFO approach because the operation seems to be exempt and I wonder if income from it would also be exempt. Receiving $xxxx from your wealth manager doesn't sound like a business activity to me. I have no actual knowledge of this, I'm searching for the right approach.
I mention the SFO/MFO approach because the operation seems to be exempt and I wonder if income from it would also be exempt. Receiving $xxxx from your wealth manager doesn't sound like a business activity to me. I have no actual knowledge of this, I'm searching for the right approach.
From @TheCryptoAnt's link above https://mof.gov.ae/wp-content/uploa...ifying-Activities-and-Excluded-Activities.pdf
Exempted:
"Wealth and investment management services that are subject to the regulatory oversight of the competent authority in the State."
I don't know if that applies to DWTC SFO but it sounds promising. The next question is whether having your assets managed by an SFO makes the income not be from your own business activity.
Exempted:
"Wealth and investment management services that are subject to the regulatory oversight of the competent authority in the State."
I don't know if that applies to DWTC SFO but it sounds promising. The next question is whether having your assets managed by an SFO makes the income not be from your own business activity.
Thank you. Yes, there might be a distinction between the exempted profit generated by such a service and the capital gains themselves. Would also be interesting to know what is meant by wealth and investment management, not sure active︀ trading is included compared to investing.
active trading and trading in general is not investment.
wealth and investment management, however, allows for certain trades which include a periodic e.g. quarterly re balance activity to be inline with the underlying investment thesis of that venture.
That being said, its not specified further in that context here, but other countries from europe do have some guidance on how/where the lines are being drawn.
Could be they are generous︀ and consider only algo trading as trading business and a few weekly trades still falling︁ into the investment category, but idk that and it seems theres no one out there︂ being able to tell.
wealth and investment management, however, allows for certain trades which include a periodic e.g. quarterly re balance activity to be inline with the underlying investment thesis of that venture.
That being said, its not specified further in that context here, but other countries from europe do have some guidance on how/where the lines are being drawn.
Could be they are generous︀ and consider only algo trading as trading business and a few weekly trades still falling︁ into the investment category, but idk that and it seems theres no one out there︂ being able to tell.
you should be allowed to deduct some other expenses, maybe tech gear and also some part of rental eventually but as you said, a salary wont be possible.
guys check this
https://www.offshorecorptalk.com/threads/tax-residence-italy-why.43715/post-287144
not that I want to live in Italy most of the year but 100k to be left alone is not a bad deal
https://www.offshorecorptalk.com/threads/tax-residence-italy-why.43715/post-287144
not that I want to live in Italy most of the year but 100k to be left alone is not a bad deal
Back to this thread as it was a good summary (cheers to Tom85,︌ changed name I guess). Aside the CIT related questions, if trading is seen as a︍ commercial business as mentioned here above (Fed decree law 50 - 2022), I'm still wondering︎ if a license shouldn't be needed for the activity. In November an agent of Dubaided️ mentioned me by phone no license was needed to trade shares/crypto with personal funds (I think it's different for Forex or trading on local markets); but not sure he was right - and there are probably penalties for an activity exercised without license. I'll ask for a written confirmation. If someone has an official source, feel free to comment on.
lol, this is like trying to find the Holy Chalice atm.
As it stands, trading frequently (and using futures) gets taxed for what I can gather; same as in Switzerland.
Hopefully this gets amended eventually, for now most people I know continue with business as usual.
As it stands, trading frequently (and using futures) gets taxed for what I can gather; same as in Switzerland.
Hopefully this gets amended eventually, for now most people I know continue with business as usual.
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