Transitioning from Dubai

[KingKing777]

If you don't mind me asking.

You left from Thailand to Dubai ? No‍ no you going back ?
What's your current Tax residency / company setup ?

I was thinking to get an Elite Visa.

 

[TheCryptoAnt]

Not 'to Dubai' to like live there but I moved most of‍ my ops there for some time. Im nomadic.

yeah, next month. Ill live there for most of the year.⁤

Personal in UAE still, this will change soon obvs.
Corp setup is a few LLCs +⁣ the FZCO which will be moving to a new LLC (for now) by years end.⁢

Solid option,︀ its really great for the price.

 

[GerhardStrasser]

Hi to everyone,
we are one of the leading agencies for business setup in Dubai.‌ If you have any questions or need support regarding your company in Dubai, feel free‍ to contact us.
https://www.emiratessetup.ae/contact-information

 

[sergeylim88]

can you give us your thoughts on corporate tax applied on fze that has income‌ for software sales to customers not located in gcc?
also your thoughts on taxes if‍ a resident owns foreign company, will it be under cfc/pe rules how do you see⁠ that?

i think these are the questions everyone is interested in here (most commonly asked)⁤

thank you

 

[Ancova]

All Companies, whether mainland or free zone, that⁣ have a yearly profit of 375k AED and above, are subject to 9% corporate tax⁢ on all profits that exceed the mentioned threshold. There is only a few activities exempted︀ and software sales is not one of them.

 

[Wellington]

Doesn't Qatar offer that, i have a friend living in Doha and i've never⁢ heard her mention tax.

Could it be︇ something more sinister than that? say laundering allegations (headsup) based on not doing proper compliance︈ checks on the companies he's onboarding (there's some real shady people that comment on this︉ forum at times).

 

[GerhardStrasser]

The corporate tax only applies to annual profits of more than AED 375,000 (approx. Euro‌ 95,000), i.e. only profits above this exemption limit have to be taxed accordingly.

At the same time, salaries, office, telephone, etc. etc. can of course be claimed as expenses‍ and accordingly reduce profits and therefore also reduce taxes. This means that if you live⁠ in the UAE, you can pay yourself a correspondingly high salary (no income tax) and⁤ thus reduce the corporate tax back to 0% in most cases.

In addition, if you have an annual turnover of no more than AED 3 million (approx. EUR 750,000),⁣ you can apply for a general exemption from this corporate tax. This general exemption⁢ is then valid until a maximum of December 31, 2026 and provided that the annual︀ turnover does not exceed the limit of AED 3 million in any tax period.

 

[PiersBlack]

What do you know?⁠ ja334¤¤#

 

[Fred]

Not at all.

I can just repeat myself that it⁤ was a Personal Decision for the following Reasons:

1. Personal Health issues - too much⁣ stress and headache while compensating questionable decision from the GoV
2. Pressure of hiring another⁢ 5-7 people to actually run an Accounting Department / Accounting Company
3. More and more︀ shady competitors joining the market daily, no rules and regulations at all

So I just︁ decided to let things happen and not to fight against them.

Further I moved the︂ stage for EmiratesSetup and should I ever again have something to offer on a commercial︃ scale I might return here in the forum more active.

Again, former DLS Dubai Clients︄ have the possibility to join my Inner Circle to get Personal Consultation and Insights.

 

[Au999]

Personally I'm staying in Dubai as the pros far outweigh the cons. Didn't even find‌ the summer heat too bad 🙂

On a practical note @Fred - I've been out of‍ action due to family issues some of which you know about - but now I⁠ realize I need to get FZCO company sorted out relatively soon to comply with all⁤ of this and make sure no fines or trouble.

What actual practical steps do I⁣ need to take now, when and with who?

Initially DLS was going to do this⁢ but obviously not now

Can I just renew everything to do with company directly with︀ ifza? And do I just register for tax myself with gov? Similarly just renew my︁ own visa?

Or will your ex-team now working at ifza pretty much pick up where︂ you left off?

I imagine there's a few guys like me who just need basic︃ pointers from someone they totally trust in an otherwise super murky biz.

Thanks man!

 

[Puzel12]

what company will you keep while living in Thailand? Dubai Company or US LLC?

 

[TheCryptoAnt]

hey so the way it will look in the end is:‍

FZCO as holding
owns: Seychelles IBC for crypto (Main activity)
LLC (x3) for different activities⁠

I keep the residency in UAE, and got an elite right before the change in⁤ price so for now Im good.

 

[Puzel12]

to keep your personal residency in Dubai will⁤ you stay for 3 months there to have tax residency certificate or how does it⁣ work? I am thinking about the same structure.

 

[TheCryptoAnt]

Not really interested on the tax residency papers as⁠ I spend most of my time in mismanaged places + I dont pay myself anything⁤ but yeah for what ive read you have to be there 3 months out of⁣ the year which is not bad tho, winters are great.

 

[Checkmelater]

Guy it’s UAE they don’t care about tax, pay you huge salary, pay you bonuses,‌ pay you dividends, pay you commissions and you will paye less than 3% tax.

 

[John Doe GOLDEN STAMP]

I would like to note that all︁ free zones will soon pay 9%. But it will be important to say that only︂ if your net profit per year exceeds 375 thousand dirhams, you are required to register︃ with the FTA and pay "Corporate tax - 9%", as well as VAT 5%. To︄ arrive is a flexible concept..

I would like to raise the topic of the differences︅ between Free Zone and Mainland.
The first and not the most important thing is that︆ soon all free zones will also be forced to pay a corporate tax of 9%︇ of the "net profit" at the end of the financial year. Secondly, if you need︈ to employ someone in your company (and not just as a foreign transfer of funds),︉ then most likely you will face a huge number of problems.

Since employment in a︊ Mainland company is simple and does not require a third unqualified person, but rather a︋ company founder or HR with an E-Signature card (5 ministries are involved, the average price︌ for an unqualified employee is 5K dirhams).

 

[01offshore007]

former DLS Dubai Clients have the possibility to join my Inner Circle

@Fred

Is it‌ limited to them alone ? If not, how much is the cost ?

 

[aage]

would love to see you be⁠ around more here to help all people including my self with the open questions there⁤ are about Dubai and all the trouble this country is producing for them self.

 

[John Doe GOLDEN STAMP]

And you should know that IFZA and JAFZA and other free zones do not provide‌ services themselves. The partner company always does this for them, this must be taken into‍ account (unlike the Mainland, where you can do everything yourself). For example, the oldest company⁠ is Shuraa. Yes, you can opt out of them and work (receive services) from free⁤ zones directly, but the joke is that no partner of the zones will allow this⁣ to be done). I shared my thoughts. Prefer Mainland.

 

[01offshore007]

all the trouble this country is producing for them self

except 9% tax and annual‌ inspection, what are they ?