UAE clarification of Freezone Qualifying Income
- Thread starter joffreylol
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You may very well be right about that. If UAE mirrors US law, income from an LLC would be personal income (i.e. no tax). But if they view the LLC as a corporation or if UAE views personal income︀ as "doing business", it's possible corporate tax would apply.
If it's the former and LLC︁ profits count as personal income, it'd probably just be a matter of time before they︂ close that loophole.
If it's the former and LLC︁ profits count as personal income, it'd probably just be a matter of time before they︂ close that loophole.
I think turning back to the UAE is a bad decision for most people with existing setup.
https://dls-dubai.com/en/99-of-freezone-companies-formed-by-dls-dubai-remain-0-corporate-tax-why/
Nothing has changed since then and I strongly recommend to follow 1.-3. from this blog article as I gonna do the same for me as a Private Individual and the Paid Consulting Service I gonna offer for a strong core of former DLS Dubai Clients.
Another issue is unfortunately the fact that a lot and I really mean a lot of Dubai Corporate Service Providers are not honest and even some Authorities are talking bulls**t. This lead for me to the conclusion that it's impossible to provide︀ upcoming clients in the next 3 Years the same Client Experience like for the Clients︁ the past 3 Years.
I understand a lot of clients have questions but preparing such︂ a transit as well takes time and energy. For everyone who is now disappointed or︃ maybe even pissed, for whatever reason, a full for DLS Dubai dedciated Consulting and Accounting︄ Department is setup and shared with you as part of that E-Mail.
Yes it's true︅ DLS Dubai was basically from Consulting Point of View a Freeride as I gave so︆ much input here and in personal Conversation because it just did add up. Please have︇ understanding that I can't give up my health for Business even when I would really︈ like to provide further such a service as it gave a lot of good feelings︉ and happiness.
https://dls-dubai.com/en/99-of-freezone-companies-formed-by-dls-dubai-remain-0-corporate-tax-why/
Nothing has changed since then and I strongly recommend to follow 1.-3. from this blog article as I gonna do the same for me as a Private Individual and the Paid Consulting Service I gonna offer for a strong core of former DLS Dubai Clients.
Another issue is unfortunately the fact that a lot and I really mean a lot of Dubai Corporate Service Providers are not honest and even some Authorities are talking bulls**t. This lead for me to the conclusion that it's impossible to provide︀ upcoming clients in the next 3 Years the same Client Experience like for the Clients︁ the past 3 Years.
I understand a lot of clients have questions but preparing such︂ a transit as well takes time and energy. For everyone who is now disappointed or︃ maybe even pissed, for whatever reason, a full for DLS Dubai dedciated Consulting and Accounting︄ Department is setup and shared with you as part of that E-Mail.
Yes it's true︅ DLS Dubai was basically from Consulting Point of View a Freeride as I gave so︆ much input here and in personal Conversation because it just did add up. Please have︇ understanding that I can't give up my health for Business even when I would really︈ like to provide further such a service as it gave a lot of good feelings︉ and happiness.
Can we ask an exemption to FTA ? It means, if I think I can be exempted can I ask FTA if I’m exempted and obtain an exemption tax certificate ? Because if I think I’m exempted and I’m not I will get fine …….
There was the possibility to fill in a direct Questionnaire to get Clarification from the FTA - this was at least how it was promoted not sure what the response did look like at the end of the day.
I recommend to assume 9% for your Business and to follow the Tipps from our Blog Article which remains Online to maximise the Tax Free Amount of Money you can take︀ out of your Company.
I recommend to assume 9% for your Business and to follow the Tipps from our Blog Article which remains Online to maximise the Tax Free Amount of Money you can take︀ out of your Company.
seems everybody gradually accepting reality....there is work around for New tax 🙁🙁🙁🙁😕😕😕
Lets try to find out best reason to move to Dubai....without tax benefit ns2ns2ns2
Lets try to find out best reason to move to Dubai....without tax benefit ns2ns2ns2
Check 00:46. It shows exceeding 1 milion AED per year will pay 9% corporate tax. Less than that is 0% corporate tax. This was 375k AED before.
Can anyone tell me if this is true and where we can find this information?
Couldn’t find it on the internet.
Can anyone tell me if this is true and where we can find this information?
Couldn’t find it on the internet.
Well, the text he shows is correct, but what he says is not quite correct.
The text says there is no corporate tax for a resident or non-resident natural person with a turnover above 1M AED. This is not a recent change, this has been known a while. See Cabinet Decision 49, Article 2: https://mof.gov.ae/wp-content/uploads/2023/05/Cabinet-Decision-No.-49-of-2023.pdf
But for a company, ie a "juridical person" there is still corporate tax on profits above 375K AED. This hasn't changed.
The text says there is no corporate tax for a resident or non-resident natural person with a turnover above 1M AED. This is not a recent change, this has been known a while. See Cabinet Decision 49, Article 2: https://mof.gov.ae/wp-content/uploads/2023/05/Cabinet-Decision-No.-49-of-2023.pdf
But for a company, ie a "juridical person" there is still corporate tax on profits above 375K AED. This hasn't changed.
Applies to turnover, not profit, for business income earned as an individual. So not all personal income, like not a salary, and real estate income is also excluded I think.
But the interesting question is if income from a US LLC counts as income earned as a natural person.
But the interesting question is if income from a US LLC counts as income earned as a natural person.
Could be, but they wrote specifically about that and you even have to file if you run an unincorporated business as a natural person.
Have these paragraphs been deleted recently?
Have these paragraphs been deleted recently?
What do you mean by „compliant“?
As I understand it, there are qualifying FZCO (qualifying for 0% CT) and non-qualifying FZCO, depending on the activities.
Non-qualifying FZCO fall under the normal tax regime.
If a FZCO does not have any activities I assume it is still necessary to make a tax report with zero income. You don‘t want to declare your company as qualifying, as you don‘t want to submit an audit report.
As I understand it, there are qualifying FZCO (qualifying for 0% CT) and non-qualifying FZCO, depending on the activities.
Non-qualifying FZCO fall under the normal tax regime.
If a FZCO does not have any activities I assume it is still necessary to make a tax report with zero income. You don‘t want to declare your company as qualifying, as you don‘t want to submit an audit report.
Looks like you can opt for small business relief if your turnover (not profit) is under 3 million AED. Plus, very simplified accounting and no auditing by the looks of it. This includes Freezone businesses.
https://www.khaleejtimes.com/busine...r-tax-relief-and-submit-simplified-tax-return
https://tax.gov.ae/DataFolder/Files/Guides/CT/Small Business Relief Guide - EN - 27 08 2023.pdf
Looks like very good news for a lot of people 🙂
https://www.khaleejtimes.com/busine...r-tax-relief-and-submit-simplified-tax-return
https://tax.gov.ae/DataFolder/Files/Guides/CT/Small Business Relief Guide - EN - 27 08 2023.pdf
Looks like very good news for a lot of people 🙂
Hello guys is there any news about salary ? I mean, if I make 800k AED profits, how much I can remove profits from my salary ? All ?
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