UAE clarification of Freezone Qualifying Income
- Thread starter joffreylol
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I understand this. Happens to me all the time.
People ask me this all the time about me and I have NO answer to it. Private bankers, investment bankers, lawyers, and accountants go crazy.
I do the following:
I have sooooooo many Mr. Smiths that I'm working 24/7.︂ Sometimes, I wonder if professionals, bankers, lawyers etc, are just pulling my leg and playing︃ stupid to try to "scam" (=sell me their financial product) me 🙄
People ask me this all the time about me and I have NO answer to it. Private bankers, investment bankers, lawyers, and accountants go crazy.
I do the following:
- Mr. Smith wants a product.
- He tells me.
- He discloses what he wants to pay for it.
- I question him and provide him with a sample or prototype.
- Once he approves it, I use my OWN money and acquire the product.
- I deliver it to︀ Mr. Smith.
- Mr. Smith confirms and pays.
I have sooooooo many Mr. Smiths that I'm working 24/7.︂ Sometimes, I wonder if professionals, bankers, lawyers etc, are just pulling my leg and playing︃ stupid to try to "scam" (=sell me their financial product) me 🙄
https://u.ae/en/information-and-services/finance-and-investment/taxation/corporate-tax
Updated on 31 Jul 2023
Seems USA LLC only taxable If It conduct business in UAE....Hope this is the case....Finger crossed
Updated on 31 Jul 2023
Seems USA LLC only taxable If It conduct business in UAE....Hope this is the case....Finger crossed
Application For Clarification cost AED 1500.00.........🙁🙁🙁🙁 even website is super slow....You have to be very patient during process...
https://tax.gov.ae/en/services/tax.clarifications.request.aspx
https://tax.gov.ae/en/services/tax.clarifications.request.aspx
Well I am not expert in this area but...
- Hiring UAE-based employees
- Renting office space in the UAE
- Advertising to UAE residents
- Selling goods or services to UAE residents
It doesn't work that way.
If you manage your company from the UAE - you're taxed. (there are exemptions for qualifying income only and some exemptions for small businesses).
I'm pretty sure most people who moved to the UAE for tax reasons have more than 1M AED revenue, so we all will be taxed.
Corporate tax rates will be 0% on taxable income up to AED︀ 375,000 and 9% on taxable income over AED 375,000
So, the first 375k is not︁ taxed. Everything over is taxed by 9%
If you manage your company from the UAE - you're taxed. (there are exemptions for qualifying income only and some exemptions for small businesses).
I'm pretty sure most people who moved to the UAE for tax reasons have more than 1M AED revenue, so we all will be taxed.
Corporate tax rates will be 0% on taxable income up to AED︀ 375,000 and 9% on taxable income over AED 375,000
So, the first 375k is not︁ taxed. Everything over is taxed by 9%
US LLCs aside, this information is both interesting and confusing:
Doing business from UAE and in UAE are surely two different︂ things. From UAE implies doing business while physically there, while in UAE implies having UAE︃ customers. It seems this clarification talks about the latter.
- free zone businesses (The UAE CT regime will continue to honour the CT incentives currently being offered to free zone businesses that comply with all regulatory requirements and that do not conduct business set up in the UAE’s mainland.)
Doing business from UAE and in UAE are surely two different︂ things. From UAE implies doing business while physically there, while in UAE implies having UAE︃ customers. It seems this clarification talks about the latter.
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