UAE clarification of Freezone Qualifying Income

[JustAnotherNomad]

I think that's a stretch. We'll see. It is entirely possible that they are‍ just testing the waters.
The FTA told me it could take until April next year⁠ for additional guidance to be published.

 

[joffreylol]

Posted in this thread Post in thread 'UAE clarification of Freezone‍ Qualifying Income' UAE clarification of Freezone Qualifying Income

 

[W9878765]

Surely he will be the least expert on the subject, but given the conversation of‌ this post, while awaiting my appointment with my tax advisor on Tuesday, I have downloaded‍ the official document Ministerial Decision No. 139 of 2023 Regarding Qualifying Activities and Excluded Activities⁠ , and since I read in articles 3 and 4 of this document, everything I⁤ have read previously in these conversations, in my opinion, does not apply to small digital⁣ businesses such as an e-commerce, with a turnover below 5 million aed , simply because⁢ from my reading, which is not that of an expert tax advisor, and which I︀ repeat could certainly be wrong, these activities are not qualifying activities, but are excluded activities︁ therefore not taxable, I leave the link to the government authority site for downloading the︂ ministerial decision, which made me make these assessments, I thank the opinion of anyone who︃ has a more expert vision Ministe

 

[jafo]

Yes, I read that, but using‍ different canons of interpretation it can be interpreted so many different ways, but in the⁠ end, it's like gender. If I ask a supplier or buyer whether he is a⁤ man or a woman and they come up with legalese and sophistry, it's time to⁣ dump them. No need to waste time with them anymore. Bad business or bad people⁢ is a definite deal-breaker for me.

 

[kekmaw]

Are there any guidelines out yet regarding how much you can take out as a‌ salary to keep it under the 375k AED profit?

 

[JohnLocke]

Why do you write "we" understand - are you representing a organization / firm⁣ in anyway ?

 

[jafo]

I'm glad I am NOT the only one‍ who picked up on that! 🙄

 

[JustAnotherNomad]

Not that I'm aware of and I really don't think they will care for now.
However, I'm reluctant to use such a setup because once they introduce income tax, they already‍ have all the information they need to make your life miserable.

Again the same issue - today the limit is 5M, tomorrow⁣ it could be 5k. You can see how things are done in the UAE: There's⁢ no draft law and hearing, changes are simply announced, sometimes after they have taken effect.︀

 

[TheCryptoAnt]

hey so Ivent opened the account yet but imma get into calls this week.
For what ive read around they want 250kish invested in the bank (not as cash) to⁤ open the acc, and they are ok with crypto.

Keep you posted.

 

[bedouin]

I would also like to know who replied /⁣ this meeting is with.

Thanks.

 

[bnpsu]

Interested what you find! What do you think the upper limits are with⁠ those banks? What sizes transactions can you do on-ramp/offramping?

 

[Cloudbanck]

Also seems like a single member US⁠ LLC, if it has a turnover below 1M AED will not be taxed in the⁤ UAE, and does not even need to register for CIT - even if it is⁣ run by someone living in the UAE.

At least according to Individuals with a business⁢ and turnover of Dh1 million to pay Corporate Tax in UAE

"Individuals conducting business or︀ business activities will be subject to corporate tax and registration requirements only if their combined︁ turnover exceeds Dh1 million in a calendar year.
If an individual who is a UAE︂ resident operates an online business and the combined annual turnover from this exceeds Dh1 million,︃ under the new decision, that income would be subject to corporate tax."

Annoyingly I can't︄ find the actual legal text about the 1M turnover exemption on mof.gov.ae.

 

[JustAnotherNomad]

Search for "de minimis", it should be there somewhere. If‍ there is no registration requirement, that would be very, very good. What would worry me⁠ is if you had to register.
Maybe it would be possible then to split the⁤ business across multiple companies, so that none of them would go over that limit...

 

[jafo]

So...., so far, we really don't know anything about taxes in the Dubai Free Zone,‌ right?

Or do we actually already know all we need to know and it's time‍ to search & look somehwere else?

What safe haven do we have now to escape⁠ from the Gestapo? 🙄

PS. In the last four years, I've been getting bombarded with ads⁤ about investing and buying properties in Dubai. At least 3 dozen per day...on a slow⁣ day! It's like they were desperate trying to separate my money from me by any⁢ means necessary. 😳

 

[USDT]

How do you think,︄ will the de minimis requirements be considered met if the turnover is exceeded in the︅ previous tax period? Will it be enough to slow down in the new financial year︆ (starting in December for my case)?

 

[TheCryptoAnt]

ive got an‍ introduction call on Wednesday, ill ask.
keep u posted here.

 

[Martin Everson]

Looks like its a wrap for most people (on here) for tax free UAE companies‌ based on Qualifying Activities.

OECD 1 - 0 Dubai

.....game over.

P.S UAE companies without‍ economic substance are already reported outside of CRS.

https://www.offshorecorptalk.com/th...es-with-no-substance-with-ubos-country.36103/

 

[bonox]

he can't he is trolling troll¤##

 

[JustAnotherNomad]

Any update, @Fred ?

 

[Fred]

Yes - need to find time‌ for a separate Thread.

We worked out an overview including an legend however our existing‍ clients have the first turn - still a lot of pending messages.

@ all DLS⁠ Dubai Clients with pending messages and questions - we see you and get back ASAP:⁤

Should get something done during the late night hours.