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

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Utilising the Small Business Relief to have 3m AED (750k$) Turnover is Tax⁠ Free. This comes handy for a high margin Business. Afterwards having me and my better⁤ half employeed in the Company and pay a solid salary of 60k AED and 30k⁣ AED to have together with the 375k AED Tax Free Amount ongoing something like 350k$⁢ per Year Tax Free. That's enough for me at least.

Taking the pill the upcoming︀ year and paying a bit more using the IFZA Accounting Service (having trust in them︁ at this point as there Accounting Manager is basically our former Employee) but we all︂ know anyway that latest next Year we see a massive decrease in Trade License Pricing︃ as the UAE otherwise is becomming uncompetitive.

I estimate it to be 5k$ per Year︄ for Trade License and Basic Accounting with 25-50 Transactions per Month in the mid run︅ similar to Cyprus.

Had by the way a call with the CEO of the Caymen︆ Enterprise City. Quite expensive talking 20k$ Setup and 15k$ Maintenance is not necessarily cheap especially︇ most guys looking here for a cheap price. Met several guys lived on Cayman and︈ even the 50+ Year Old Guys said it's just super boring and you start Island︉ hoping or being most time in Miami. Can be however an expensive diverisification for some︊ guys. Not talking about Banks. Spoke to a Guy who got rejected after 3 months︋ of blabla from Butterfield Bank in the Caymans so prepare yourself either for EMI Banking︌ with High Fees or some 7 figure Balance with the usualy Guys in Switzerland/Liechtenstein.
 
Been in Dubai 6 years, work in‌ legal, had a meeting with EY and Clyde & Co early July about it. I‍ stand firm about my statement.
 
You qualify for‌ the exemption as long as you don't do any business with mainland companies or natural‍ persons. If you only use UAE FZ as a way to optimize foreign income and⁠ meet the requirements, there is nothing to worry about, consult your advisor to make the⁤ set-up air tight.
 
I'm glad that you took my proposal about cayman islands enterprise city seriously.︋
Even with high cost for setup, it is still good option for many people.
They basically copied dubai business model.
Only thing is missing is establishing relationships with local banks︌ in Cayman islands.
If you can get a business account with a local bank in︍ cayman islands, setup will be complete.
 
I have fat binders of papers related to this prepared by EY and PWC, working closely‌ with Meydan and HFZ authorities. Sure, avoiding CT is harder but definitely doable with the‍ correct set-up, work and operations planning.
 
You should never trust real estate agents anywere! They are biggest liars ever︁
I agree. If you have normal companies else and like Dubai vibe/place it's good place.︂ In such case you will not pay tax for capital gains, dividends (some cases), salary︃
 
Why not show the papers or explain the "correct setup"?

It sounds more like⁤ you're trying to confuse people to set them up to sell something...
 
None of those places has‌ 0% corporate tax. Not one of them.
You can only get to a position where‍ they will say "we should pay your tax elsewhere, not to us". It's completely different⁠ from being taxed at 0%.

This is, unfortunately, completely false. Whoever told you this either had no idea or you were⁢ lied to.
 
Not true, you can read it‍ on the official FTA website. Clients outside the UAE are treated exactly like mainland clients,⁠ even if it's all B2B.
The only exception would be if it's income from a⁤ qualifying activity and you have substance in the freezone.
 
No. You‌ would not be able to obtain a tax residency certificate for your company.
HK does‍ not apply 0% tax. Instead, HK says "this income is not subject to HK tax".⁠ It's completely different.
It's like having a company in France selling services to a company⁤ in Italy and you ask the Australian tax authority how much taxes you owe. That⁣ doesn't mean you paid "0% tax in Australia" for your company. It just means Australia⁢ says "this is not our business".

There are like 300 pages about this in the other thread, you even posted there. Just︀ use Google and look up the official corporate tax FAQ. It's all explained there.
 
If I︁ go with HK service provider and register my company, I should first ask for tax︂ certificate for my company?
 
You can ask if they will be able to provide a tax residency certificate for‌ the company. I can already tell you that the answer will be no if you‍ don't want to pay tax.
A tax residency certificate is a confirmation that the company⁠ has its "tax home" in that country. This also gives you access to tax treaties.⁤ But it also means you pay taxes (unless it's a 0% tax country).
A HK⁣ tax residency certificate would confirm that you "do business in HK". But in order to⁢ avoid taxes in HK, you can't "do business in HK".
The 0% HK company is︀ an "offshore company", it does not really do business in HK. So it doesn't "reside"︁ in HK either. It's similar to a US LLC, which is also registered in the︂ US and you have to do some accounting, but it is not taxed at 0%︃ in the US, it is simply not subject to tax. If you had activity in︄ the US, you would pay 20-30% in taxes + withholding tax.

So you get a︅ company, but that company isn't taxed in HK because HK thinks you should pay taxes︆ somewhere else. For example, if you live in Dubai, you will have to pay corporate︇ tax for the HK company in Dubai (due to management and control/PE).
If you live︈ in Thailand, Panama or Paraguay, you may not have to pay tax for your HK︉ company, simply because they don't care if you don't have Thai clients.
But what happens︊ is that you have double non-taxation because none of the countries involved wants to tax︋ the company. That's different from being subject to tax at a rate of 0%, which︌ you would have with a company in Qatar or the BVI, for example (as far︍ as I know, haven't done much research on those countries).
 
From what I understood this tax residency certificate would confirm that I am a resident︍ of another country and that I'm running HK company offshore.
So I need to be︎ resident of a tax free company to avoid paying tax
I am correct?
 
What you wrote here doesn't make much sense, but I said you could achieve a︍ 0% tax setup, living as PT, or living in a 0% personal income country using︎ those structures.

If you would like in Singapore, you would pay SG taxes, same with️ HK and US.
 
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