UAE (Dubai) Expats: What moves will you make with the new UAE tax laws?

[JustAnotherNomad]

0% corporate tax company where? For B2B, billing through a BVI company isn't really⁤ an option.
Another option to perpetual travel: Moving to a country with territorial taxation and⁣ lax rules, like Thailand or Paraguay.

 

[JohnLocke]

I don't believe it to be that simple. There will be enough who will stay and︀ even establish their business in the UAE regardless of the 9%! Just because the majority︁ in this thread don't agree with the new tax then there may be thousands that︂ do. But as usually when something new is implemented only time will show the result.︃

We could hope it will have such a bad impact on the UAE that they︄ will change their mind but I doubt.

 

[Don]

I agree⁢ and will be staying.

UAE with its vibrant marketplace and thriving business environment, stood as︀ one of the final bastions of capitalism in a world undergoing significant socioeconomic shifts moving︁ towards neocommunist world order. Its business environment made it a living testament to the enduring︂ spirit of capitalism looking at Marx's 10 planks and how its being implemented across the︃ world.

https://magyarnemzet.hu/english/2021/03/davos-era-neocommunism

 

[Konstanz]

I think with current Russians, Ukrainians inflow UAE will do very good with 9% income‌ tax. Because most of immigrants they have no other choice. As for immigrants from EU,‍ it will be less interesting

 

[Checkmelater]

If you still want be in the desert you can open free zone company in‌ Qatar, I think it’s still 0% CIT.

 

[JustAnotherNomad]

You can still take out $200-300k without paying‍ taxes. I doubt that most of them make more than that...

 

[Konstanz]

Yes but they will generate income‍ for accountants lawyers etc
Spend money in UAE etc

As Fred told he would need⁠ 5 additional people just to deal with all bureaucracy.

For us Europeans is not worth⁤ I think. We can do similar in Europe without being in desert and have normal⁣ bank access , infrastructure etc

 

[Checkmelater]

We can’t do it ourself ?

 

[Konstanz]

You can. But will‌ the account be ok for auditor?
Many questions and no answers

 

[Checkmelater]

For my business I can do it myself, if just‍ a stamp is required from Audit company I’m mad to pay for this ….

 

[madihrb]

Even for South Asian like me its not worth it, I spent around 7⁣ years here. Who is stopping me to move to US or EU where taxes can⁢ be high but less headache and more opportunities to grow. Its not only about taxes,︀ the expenses of accountants, audit, lawyers, gov fines will further increase cost of doing business.︁

As Fred said big law and accounting firms lied to him. That is another concern︂ working in UAE, I dont trust anyone here, not banks, not consultants not even real︃ estate agents. Dubai is good for personal stuff, where business is concern its not a︄ good place to do business specially online business because no eco system here.

 

[Checkmelater]

Now you have to pay: consultants, tax audit, 9% on profits >375K AED and renew‌ your company every years and another costs I Think .. In EU it’s still higher‍ (in my country) but I have everything free (hospital, schools) ..
I think UAE become⁠ interesting for people who makes 5-10M USD / year profits ..

If I obtain golden⁤ visa and I close my FZCO Company, I own a LLC US I I’ll pay⁣ CIT ?

 

[JustAnotherNomad]

Making 200-300k tax free? Ok, you have‍ to pay for accounting, but that isn't free in Europe either.

This 100%.

 

[yngmind]

HK, Singapore, US for example.⁠

Yes, you will still have to.

Why not︂ Cyprus or Malta, guys?

 

[Paul Tudor Jones]

100% what you wrote and also let's remember that if you lived in︁ a normal European country you would have been eligible for a passport by now. In︂ UAE you will have no rights, ever.

 

[yngmind]

Yes, and it's⁠ just not a healthy lifestyle. Dust, sand, A/C, one of the worst air quality in⁤ the world. (the worst currently, ranked #1 according to iqair 🙂 )

You have to pay⁣ a lot for healthcare, and everything is overpriced.

Thailand setup was discussed already here.

It's illegal because you create PE in Thailand.

 

[Moonlighter]

Generally speaking if you worry too much about such pocket expenses, Dubai is not the‌ right place for you.

I think it depends a lot on someone's personal background, i.e.‍ if you have a tier 1 passport and majority of your income is capital gains,⁠ Dubai is still awesome.

If you run a business and need access to the European⁤ market, proper banking and generally affordable cost of living expenses, maybe look for a different⁣ place even with taxes. Accounting (+ audit) and paying some taxes is something we'll have⁢ to live with, as long as you're not picking a remote island outside civilisation.

Do the math and then compare suitable jurisdictions. For some Dubai is certainly not the best︀ choice, but I would not draw a generalised conclusion.

 

[Martin Everson]

If you now consider Dubai a low tax rather‍ than tax free country going forward then people will still move there. The problem is⁠ it has lost a lot of its attraction and will continue to do so when⁤ personal income tax eventually comes. In years to come Dubai will begin to look run⁣ down as poor build quality and declining rents etc will lead to cutting corners in⁢ private real estate.

The biggest question is do you want to pay corporate taxes and︀ eventually personal taxes to a dictatorship where you have no rights and have to leave︁ the minute you have no money to pay your rent due to i.e illness.

 

[Mercury]

Unenforced outdated laws are irrelevant, especially in Thailand.

 

[Helkins]

For the love of god guys.

Operating a UAE FZ LLC is still going to‌ be tax-free if you know how to use it.
9% CIT doesn't apply on profits‍ of a FZ entity that doesn't do any business with UAE mainland. If your business⁠ operates only abroad or within a freezone then your profits are still tax-exempt.