UAE to introduce 9% corporate tax on business profits from June 1, 2023 (FZCO REMAINS 0%)
- Thread starter calnana
- Start date
- Status
Why can't AED be used for international business? Outgoing and incoming payments will be converted to/from USD, EUR and others, and hence small FX losses. Is that it? Does it have a big impact?
Now the OECD bullying starts. UAE about to face what we in Caribbean have already been through with them smi(&%.
-----
In addition, the officials also deliberated on the UAE’s readiness to implement the global consensus to address tax challenges arising from the digitalisation of the economy.
The officials also discussed the need to combat base erosion and profit shifting (BEPS), as well as the latest︀ updates on the requirements of country by country reporting (CBCR), the economic substance regulations (ESR),︁ and the common reporting standards (CRS).
-----
-----
UAE, OECD discuss global tax standards, tax challenges arising from digitalising the economy
The UAE Ministry of Finance and OECD officials also discussed the need to address base erosion, profit shifting, economic substance regulations, and common reporting standards.In addition, the officials also deliberated on the UAE’s readiness to implement the global consensus to address tax challenges arising from the digitalisation of the economy.
The officials also discussed the need to combat base erosion and profit shifting (BEPS), as well as the latest︀ updates on the requirements of country by country reporting (CBCR), the economic substance regulations (ESR),︁ and the common reporting standards (CRS).
-----
1% of each transaction you receive I think/
Well what makes the UAE special is that you are considered a resident if you︆ enter the country once every six months, so there is no CRS reporting. As long︇ as that doesn't change, they can discuss forever, because that's the loophole. Of course if︈ you don't have a tax certificate, you can't really use the money outside UAE, so︉ it's not a gigantic loophole, but it's what makes UAE attractive in my opinion.
Well what makes the UAE special is that you are considered a resident if you︆ enter the country once every six months, so there is no CRS reporting. As long︇ as that doesn't change, they can discuss forever, because that's the loophole. Of course if︈ you don't have a tax certificate, you can't really use the money outside UAE, so︉ it's not a gigantic loophole, but it's what makes UAE attractive in my opinion.
The OECD will change this 😉.
Hopefully you can see the obvious problem in claiming residency for a place you visit only 2 days a year.
Hopefully you can see the obvious problem in claiming residency for a place you visit only 2 days a year.
It will? Or you think it will? Or you wish it would because you envy the people who have it? 🙂
And? What is it what makes an AED account unfit for an international business?
And? What is it what makes an AED account unfit for an international business?
You don't need to claim residency, you only need to put your money away there. And then you claim residency outside of your country but in a different state where you have nothing.
All borkerage/bank accounts stay with the UAE residency, so there is no CRS. No banks outside UAE, only Wise.
When you want to spend the money outside of the UAE you will have to spend 3-4 years to get the tax certificates to be able to buy a house.
This of course assumes no wife︀ and no kids.
Yeah but I feel money︂ is safer in the UAE. No need to change for now, I also like Dubai︃ and it's closer to everything, I spend 1-2 months there as I have friends and︄ clients there.
All borkerage/bank accounts stay with the UAE residency, so there is no CRS. No banks outside UAE, only Wise.
When you want to spend the money outside of the UAE you will have to spend 3-4 years to get the tax certificates to be able to buy a house.
This of course assumes no wife︀ and no kids.
Yeah but I feel money︂ is safer in the UAE. No need to change for now, I also like Dubai︃ and it's closer to everything, I spend 1-2 months there as I have friends and︄ clients there.
Let's say you go and buy a house. In any country if you buy a house the tax authority asks you the question: where is this money coming from?Where did you pay taxes on this?And you have no answer. So of course you can use some money outside of the UAE, but you can't purchase properties or stuff like that.
A Tax Certificate doesn't explain where your money comes from.
A Tax Certificate is used when your Home Country Tax Authorities challenge your Tax Residence Status.
You can utilise your money from the UAE worldwide without any issues.
Of course︀ you can't claim Residence in UAE, showing up 2 days a year in the UAE︁ and then purchasing in your home country property while you are still living there fullt︂ time.
I think or lets say I hope - this is clear for everyone anyway.︃
A Tax Certificate is used when your Home Country Tax Authorities challenge your Tax Residence Status.
You can utilise your money from the UAE worldwide without any issues.
Of course︀ you can't claim Residence in UAE, showing up 2 days a year in the UAE︁ and then purchasing in your home country property while you are still living there fullt︂ time.
I think or lets say I hope - this is clear for everyone anyway.︃
A tax certificate explains that you have paid taxes somewhere on your money. Sure it︀ doesn't mean that the money comes from legitimate business but it clarifies the fact that︁ you have paid taxes on that money, even if taxes are 0 like in Dubai.︂
The issue is not only with your home country, in whatever country you go, at︃ least in Europe, and buy a house, you will get asked from where that money︄ comes from and if you have paid taxes on it. You can't go to Spain︅ and buy a house and say to the hacienda that you have no tax certificate.︆ That's what I mean with "you can't use your UAE money", if you stay in︇ the UAE less than 180 days and get a tax certificate, which is what most︈ digital nomads do.
The issue is not only with your home country, in whatever country you go, at︃ least in Europe, and buy a house, you will get asked from where that money︄ comes from and if you have paid taxes on it. You can't go to Spain︅ and buy a house and say to the hacienda that you have no tax certificate.︆ That's what I mean with "you can't use your UAE money", if you stay in︇ the UAE less than 180 days and get a tax certificate, which is what most︈ digital nomads do.
All three...lol.
No I am speculating obviously but I think it will change. Depending on what OECD agrees with UAE it maybe as simple as reporting accounts of residents without fiscal tax residency to persons home country. Read that as people spending less than 183 days a year in Dubai. It will be similar to the way UAE is made to report UAE companies without economic substance to a UBO's home country currently.
P.S Envy..lol...I Iive on a tax free island remember 😉.
No I am speculating obviously but I think it will change. Depending on what OECD agrees with UAE it maybe as simple as reporting accounts of residents without fiscal tax residency to persons home country. Read that as people spending less than 183 days a year in Dubai. It will be similar to the way UAE is made to report UAE companies without economic substance to a UBO's home country currently.
P.S Envy..lol...I Iive on a tax free island remember 😉.
But the substance of UAE is your residence, so if you have a UAE company and you are a UAE resident, and you are employed by your company, you are ok︀ even if you stay 2 days in the UAE. I mean, of course it doesn't︁ make sense to really stay only 2 days, I think that 1-2 months are better︂ to be on the safe side, but in general your company wouldn't be reported in︃ this case because it would have suvbstance.
A piece of paper is not substance unfortunately. It would make sense to be present at least︀ 6 months or 183 days like most other countries. Otherwise they should classify you a︁ non-fiscal resident and report you to home country. 2 days is a joke and so︂ is 8 weeks.
Again its just my speculation as UAE fake residency is known issue︃ globally.
Again its just my speculation as UAE fake residency is known issue︃ globally.
It is by far not the only one doing that and it is even pretty strict compared to HK and Panama where you can be absent for 3 or 2 years.
Bahamas seems to be very︀ lax as well. 😉
https://english.elpais.com/economy_...tax-agency-followed-the-trail-of-shakira.html
Bahamas seems to be very︀ lax as well. 😉
https://english.elpais.com/economy_...tax-agency-followed-the-trail-of-shakira.html
Yes because we are a banana republic and one reason why we come off and on blacklists everyday. But look what happening to Shakira for using that nonsense paper residency. It should serve as a lesson to any fool thinking it will work for them.
@rowena I had Mashreq account 4-5 years ago then they decided to close many FZC accounts in 2019. However I heard that they re-opened for FZC again from 2021. But my friend said that they screw customers with bad services and often ask for supporting documents, do you get any problem with Mashreq?︀
- Status