UAE to introduce 9% corporate tax on business profits from June 1, 2023 (FZCO REMAINS 0%)
- Thread starter calnana
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Maybe some of the UAE based Forum users here now understand why we work with Freezone Companies only - this move was expected to keep off the FATF Grey List.
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The United Arab Emirates is planning to introduce federal tax on corporate earnings for the first time, scrapping the levy-free regime that’s helped make it a magnet for businesses from across the world.
The government is set to introduce a 9% federal corporate tax on business profits from June 2023, state-run WAM news agency said on Monday. Corporate tax will not apply on personal income from employment, real estate and other investments, and︀ incentives for free zones will continue.
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Source
https://www.bloomberg.com/news/arti...nment is set to,for free︁ zones will continue.
---START QUOTE---
The United Arab Emirates is planning to introduce federal tax on corporate earnings for the first time, scrapping the levy-free regime that’s helped make it a magnet for businesses from across the world.
The government is set to introduce a 9% federal corporate tax on business profits from June 2023, state-run WAM news agency said on Monday. Corporate tax will not apply on personal income from employment, real estate and other investments, and︀ incentives for free zones will continue.
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Source
https://www.bloomberg.com/news/arti...nment is set to,for free︁ zones will continue.
Slowly but surely the UAE falls in line with global standards. This was to be expected.
Another source: UAE announces new tax to go into effect next year
Another source: UAE announces new tax to go into effect next year
Yes that's why you are going with a Corporate Service Provider that get's you the necessary substance.
Luckily - they are much smarter then all the other Belize, Seychelles, Cayman etc.
Makes the UAE as a Business Environment stronger then ever before.
If thing are setup in the right way you︀ can still achieve what everyone is looking for - 9% corporate tax to please the︁ world but FZCO remains 0% - that's such a smart move.
Luckily - they are much smarter then all the other Belize, Seychelles, Cayman etc.
Makes the UAE as a Business Environment stronger then ever before.
If thing are setup in the right way you︀ can still achieve what everyone is looking for - 9% corporate tax to please the︁ world but FZCO remains 0% - that's such a smart move.
It's clearly the effect of FATF possible grey listing.
Not exactly. If you operate business as individual you are subject to this tax.
"No corporate tax will apply on personal income from employment, real estate and other investments, or on any other income earned by individuals that does not arise from a business or other form of commercial activity licensed or otherwise permitted to be undertaken︀ in the UAE."
We will see how this develop. It will be interesting to see︁ if Freezone companies would not loose "resident" status. I image they will require stronger substance︂ requirements. Well you have similar companies in BVI and Seychelles. They are called "international companies"︃
"Recognising the contribution of free zones to the UAE’s economy and competitiveness, the UAE corporate︄ tax regime will continue to honour the corporate tax incentives currently being offered to free︅ zone businesses that comply with all regulatory requirements and that do not conduct business with︆ mainland UAE."
Not exactly. If you operate business as individual you are subject to this tax.
"No corporate tax will apply on personal income from employment, real estate and other investments, or on any other income earned by individuals that does not arise from a business or other form of commercial activity licensed or otherwise permitted to be undertaken︀ in the UAE."
We will see how this develop. It will be interesting to see︁ if Freezone companies would not loose "resident" status. I image they will require stronger substance︂ requirements. Well you have similar companies in BVI and Seychelles. They are called "international companies"︃
"Recognising the contribution of free zones to the UAE’s economy and competitiveness, the UAE corporate︄ tax regime will continue to honour the corporate tax incentives currently being offered to free︅ zone businesses that comply with all regulatory requirements and that do not conduct business with︆ mainland UAE."
That's off-topic but you always describe the scenario when you still have questionable substance in your home country - the majority of the people nowadays know that they have to cut as much as possible ties with there home country and to move out.
Anyway let's stick to the topic of the thread.
Anyway let's stick to the topic of the thread.
Correct, profits over $100K are taxable, I'm sure everyone's expenses are going to be Sky High!!!
Substance is your most important aspect of this because you know that they will be coming for FZ companies soon.
There will be a Crypto tax coming as they will say it fall under the same rules for banking, 20% is what the banks pay.
Its time to look at Bahrain and Qatar as possible Plan B's.
I would take︀ this as an opportunity to get set up and put as much money in the︁ bank now before the curtain closes.
Substance is your most important aspect of this because you know that they will be coming for FZ companies soon.
There will be a Crypto tax coming as they will say it fall under the same rules for banking, 20% is what the banks pay.
Its time to look at Bahrain and Qatar as possible Plan B's.
I would take︀ this as an opportunity to get set up and put as much money in the︁ bank now before the curtain closes.
Substance means real activity in Freezone. Real offices, real employees.
My bet it will be more difficult to get Tax Residence Certificates and local bank accounts for Free zone companies
Freezone company without tax residence certificate is nothing more than Seychelles IBC 🙂
My bet it will be more difficult to get Tax Residence Certificates and local bank accounts for Free zone companies
Freezone company without tax residence certificate is nothing more than Seychelles IBC 🙂
They are already in place.
I mean what more then having a Banker coming to the Office to make pictures and look around in terms of substance can be done? That's already some kind of Sh*tshow now - imagine the banker wants to sleep in your bed to check your apartment lol.
I don't see anything changing - it's not new that FZCO is thougher then Mainland for account opening and this will continue now - in difficulty lies opportunity.︀
I mean what more then having a Banker coming to the Office to make pictures and look around in terms of substance can be done? That's already some kind of Sh*tshow now - imagine the banker wants to sleep in your bed to check your apartment lol.
I don't see anything changing - it's not new that FZCO is thougher then Mainland for account opening and this will continue now - in difficulty lies opportunity.︀
What most people do is incorporate those Freezone companies in UAE without substance to avoid VAT ant corporate income tax in Europe while in reality owners and real operations remain in Europe.
So, I think this will end sooner or later. Either owners will have to leave or hire real persons in UAE. The same with BVI, Seychelles.
Everybody understand that even 95+% UAE ID's /residencies are just card/paper. No one live. It's just to avoid CRS
So, I think this will end sooner or later. Either owners will have to leave or hire real persons in UAE. The same with BVI, Seychelles.
Everybody understand that even 95+% UAE ID's /residencies are just card/paper. No one live. It's just to avoid CRS
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