UAE Mainland or FreeZone?
- Thread starter Yakooza
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You can, although it is a question whether the UAE tax auditors would check matters further (not really probable in the near future), and the director has to lie about the BO when declaring it during the KYC renewal with the banks. What could be the problem is finding a suitable director who will not steal the money, as we do not speak a yearly salary of US$10,000 a year but much more
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In this case the freezone would be the better choice of course. Most of the freezones do not maintain publicly visible company registers.
Real question here. Imagine that my company is an IT consulting services, my partner and me are doing IT development/consulting, our salary are almost 80% of the revenue of my company, we don’t have many investments neither costs, it’s all done via working from home. In this case UAE courts can see it has tax evasion? Why?
The GAAP rule for the salary percentage for directors is about 11% only. While the overall salary ratio can reach until 60% percent. However, it all comes down to the justification of the amount that you are recording. If your IT company is running for quite some time now and the salary rate is constant from the beginning︀ of the operation then it should be ok. Additionally, you also mention that there were︁ no major expenses since this is a consulting company and almost every transaction can be︂ done remotely, so this is justifiable as well. It will also be safe if the︃ salary that you are receiving are still based on the market value. The Directors usually︄ received 40k-60k a month. So if the salary that you are getting are within this︅ range, then this is an additional safe point to consider. But all of this things︆ should have proper supporting documents to begin with. So in case of audit, you can︇ have sufficient proof for your books. The only red flag is that upon the release︈ of the corporate tax law, the company decided to spike up their expenses especially the︉ salaries, then it can be ground for tax evasion.
With turnover of up to 3M AED per year you can qualify for small business relief.
Thats up to 67.5k per month and in such case it doesn't really mather if you allocate it as salary or profit.
100k salary per month is clearly not market level so it looks like evasion of corporate tax if you are a related party.
Thats up to 67.5k per month and in such case it doesn't really mather if you allocate it as salary or profit.
100k salary per month is clearly not market level so it looks like evasion of corporate tax if you are a related party.
Thank you
So from my understanding, $50 to $60k Salary would be okay.
How about when the turnover got higher? Is there any way? Bribing the tax agents or anything like that?
and for the company itself it is︀ up to 350k Durham per year is tax FREE. Right?
How about also put my︁ wife or a relative as another employee and paying her another $50k per month?
So from my understanding, $50 to $60k Salary would be okay.
How about when the turnover got higher? Is there any way? Bribing the tax agents or anything like that?
and for the company itself it is︀ up to 350k Durham per year is tax FREE. Right?
How about also put my︁ wife or a relative as another employee and paying her another $50k per month?
The authorities will check what is the market salary for your position in the company, so you cannot claim a huge salary to avoid taxes, they will see right through that.
The small business relief scheme of 0% CT up to revenues of AED 3m can be claimed until 2026. And that is AED 3m revenue only, not profit.
The small business relief scheme of 0% CT up to revenues of AED 3m can be claimed until 2026. And that is AED 3m revenue only, not profit.
It's a pity there are no professional advisors for Dubai around the forum anymore; it seems to be in short supply, and those who were here have given up because they can't get their business running. Foolish, when customers are lining up to pay for a service that solves both parties' problems.
we are one for Dubai, however we do not have legal or accounting services, to which we refer to our partners
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