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UAE clarification of Freezone Qualifying Income

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As I understand people who incorporate in Dubai don't want any accounting, reporting, audits or taxes‌ (even 1%). Because it''s no point. Unless you are Russian and don't have other choice.‍
I just don't see this work

Some people just don't understand but in practice Dubai⁠ already has personal income tax. It's hidden behind lines. If you work with BVI,⁤ Deleware LLC, UK LP you are taxed UAE CIT 9%
Such rulings don't exist in⁣ Monaco, Cayman, Bahamas..
 
Well, it depends on profit and turnover. If profit is below‍ 375k AED, or turnover below 1M AED there would be no tax I think -⁠ assuming it's a single member LLC. And even if you are above the limits, you⁤ can probably pay yourself a salary up to the GAAR limit tax free - and⁣ this will be deemed a distribution on the US side, and probably a salary on⁢ the UAE side.
 
you think Monaco will not care⁢ if you run your company registered in BVI, Seychelles or some other tax heaven?
did you try sending your self dividend to monaco bank account from one of companies like︀ that?
 
Why you need⁠ Monaco account for this? You can use any account in the world.
The same with⁤ Cayman Islands, Bahamas.

Anyway, you have Andorra. Which have passive resident program. So, you can⁣ have 0% income tax living in Europe.
 
With the money⁠ in corporate, I pay for almost all my expenses because they are related solely to⁤ the business.
I can go for the next 200 years at my current living expenses⁣ via the forfait. I have been doing DRIP since 2009. Why should I even entertain⁢ shooting myself in the foot thinking about paying myself dividends that I won't even use?︀

What am I missing here? 🙄

Why should they?
Call the law offices of these lawyers and get a︃ Memorandum of Law from them:
PERSONAL TAXATION. Income tax Monegasque nationals and foreign nationals residing︄ in Monaco are not subject to personal income tax in Monaco. French nationals residing in︅ Monaco are, however, subject to French income tax (under Article 7-1 of the French-Monegasque bilateral︆ convention of 18 May 1963). Dividends and capital gains are not subject to taxation..

PS. I still have an apt in Monaco since 2003.
 
i am kind of lost here
so if you report to monaco authorities that you‌ have some offshore company that you manage (do business through) does it get taxed or‍ not?
 
You don't have to report anything and there is⁠ no tax
Monaco model is based that they don't charge income taxes on individuals. And⁤ individuals don't need to disclose their assets (unless its Monaco real estate property or company⁣ incorporated in Monaco)
Country levies VAT tax on consumption inside country which is set at⁢ 20%.

But this is offtopic. This discussion is about UAE CIT!
 
Smple words?

OK!

Imagine that⁠ for some strange reason you actually need people working for you, no contractors, no freelancers.⁤

I know that might sound mindblowing to some of you but employees are needed to⁣ run businesses.

But you not only need people.

You need skilled people.

You need talented⁢ people.

You are in competition with everyone to get the best people working for you.︀

Do you REALLY believe that having an offer for a position in Dubai could be︁ anywhere near comparable with an offering for a position in Malta or Cyprus where there's︂ fu@*ing 35% income tax bracket.

I get that money is not everything but for a︃ young professional, spending few years in UAE and receiving tax free salary makes the difference.︄

Is that simple enough?

And the really funny part is that i'm coming across like︅ a Dubai ambassador but nothing could be farther from the truth!

The bottom line is︆ that from my point of view UAE makes sense for some businesses EVEN with 9%︇ CIT
 
Ok wait how did you apply for the lump sum︄ regime if you get wealth taxed??? For the lump sum you pay tax on a︅ fictional income. You can't be income taxed or wealth taxed...
Swiss sourced income is taxed︆ normally. Everything you own in Switzerland is taken into account in the lump sum. If︇ the company is in Switzerland the salary you receive is taxed normally

Income received in Swiss companies get taxed normally I don't know what you are︉ talking about

Also, Zurich abolished the lump sum regime. I don't know what advantage you︊ get from living here.
 
Do you mean in Monaco, Cayman,⁢ Bahamas US LLCs are seen as tax transparent?
 
I mean these countries don't care if you own let's say‍ BVI company and do business through it. Or through LP's or other tax transparent entities.⁠
Dubai now see these transparent entities as taxable in UAE
 
Whats the 15% marge? Youre considering‌ a 15% margin over the revenue? And how does this work with your sticky where‍ you say all this qualified income thing is jadda jadda and in reality digital marketing⁠ is manufacture of goods?
 
Dubai has good quality︅ employees is this a joke?
All these FZ are totally empty. I have been at︆ couple of them. Some cases I even did not see electric sockets on work desks︇
All Dubai is just cheap labor workers from Pakistan and India who serve as slaves︈ for local emiratis and rich residents

Job positions? This forum is not for job seekers︉ in Dubai who work at hotels. Maybe you are in a wrong forum?
Yes you︊ pay 35% tax in Malta, but maybe you get possibility to get pension and normal︋ public health care? This is talking about job positions if you want
 
@Fred emphasizes that for the majority of his clients, it will not have a significant⁤ financial impact.

Most large multinational companies will be impacted and probably do not rely on⁣ Fred to establish their branches, as they have their own financial & taxation advisors or⁢ international firms such as PWC.

The presence of a corporate tax can indicate a shift︀ towards greater tax transparency and compliance with international standards. This can enhance the trust of︁ businesses and investors, contributing to Dubai's image as a serious and reliable business hub.

Lastly, a crucial aspect to consider is the taxation of foreign companies without sufficient substance, such︂ as Delaware LLCs, which can subject them to corporate tax liabilities.

Let's work together all︃ of us for :

- Confirming using law
- Figure it out any solutions
 
True. I use the forfait and wealth tax interchangeably because that's how it was many years⁤ ago, but you are correct. It's just forfait. The 0.3% is what the ruling calculation⁣ did cost initially when the net worth was taken into account. We did this calculation⁢ on our own.

That is the ZUG company!
Source:
Zug Corporate taxes︁

That is correct! I do take CHF120K from the︃ company yearly although I don't need it! This was agreed upon BEFORE I moved to︄ CH. I would ONLY move there if certain conditions were met. They were met. I've︅ had Swiss accounts for +2 decades before this. CH was making 0.00 off those accounts.︆ Why would they NOT agree?
Grandfathered provisions were︈ agreed upon BFEORE they abolished this. Others can still live in many cantons including Zug.︉ With the S24, you can be in Zurich in 30 minutes while traveling in comfort.︊
 
It's nice case. Lump sum is still possible, but it's︃ quite expensive. I don't know if its worth to pay 100k CHF/year for being tax︄ free and live in CH. Maybe for some people. I know person who do it,︅ but he is very rich
There are only around 5k lump sum residents in CH:︆
https://www.efd.admin.ch/efd/en/home/taxes/national-taxation/lump-sum-taxation.html
For most people on this forum options are: Dubai, Panama, Cyprus, Malta, Bahamas etc︇ 🙂

Some live in Andorra
 
Sorry but we must⁤ not be talking about the same statements.

"No matter if you are doing E-Commerce or⁣ Marketing Services - it's a Qualifying Activity and therefore 0% Corporate Tax."

and

"
E-Commerce Qualifying Activity: Manufacturing or Processing of Goods (b)

Marketing Services Qualifying Activity: Any activities that⁢ are ancillary that are listed in paragraphs (a) to (l)"

finished by

"We are happy︀ to confirm that 99% of DLS Dubai Clients remain 0% Corporate Tax !"

This is︁ misguiding to say the very least. It's somewhat offensive and almost embarrassing to read.
 
It would be nice for someone to volunteer for this and report back.

I'm too‍ "comfortable" in CH to try this, but I will donate "thoughts & prayers" for those⁠ who are willing to take one for the advancement of free men.
 
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