UAE to introduce 9% corporate tax on business profits from June 1, 2023 (FZCO REMAINS 0%)

[Martin Everson]

Whats your point here? Tax professionals can't publish paid for adverts in media?

Is there anything incorrect or not credible about what he said out of interest?

 

[Anonymous1234]

Dear Mr Martin Everson, since Mr Fred from DLS dubai is questioning⁠ the credibility of AskPankaj Tax advisors as a paid advert on gulf news. If you⁤ could please confirm if Mr Fred or DLS Dubai is doing paid advertisement on offshore⁣ Corp talk too?

Dear Fred, with all due respect you︀ are insulting the indian guy by using this statement without providing any rebuttal or facts︁ to support your argument? How can you say it will be 0% corporate tax for︂ FZCO when there is still no clarification on qualifying income for freezone companies?

I have︃ read the white paper word by word on the fta website, it doesn't treat freezone︄ company as an offshore company atleast in the white paper published.

Page No. 16 of︅ the corporate tax law from the Federal tax authority of UAE website.

 

[Fred]

Sorry when you︃ missed the private invitation event the FTA was hosting in the Dubai Marina couple of︄ weeks ago.

I had the pleasure being there with the CFO of a bigger company︅ who got invited.

You will see - don't worry.

 

[Anonymous1234]

That's great, attend a few more private events then maybe you will be⁠ able to answer my questions in a more professional and mature way.

P.S Neither am⁤ I a CFO or an accountant or a tax consultant, I am just an entrepreneur⁣ who raised and asked you valid questions which any business owner would ask in this⁢ forum. You just proved your credibility with that reply. Thankyou and goodluck.

Every employee needs to be trained to reach a certain respectable level, I believe you have︂ started on the right track lol

Let me show you today what a paid advert︃ looks like lol

 

[JackAlabama]

idk whats up with you, but @Fred delivered quite accurate and actionable advice here regarding UAE over quite a long period of time︁ already.

Thats quite the difference compared to just a paid article in xyz-newspaper.

 

[Anonymous1234]

Nothings up with me,⁠ I don't think I posted anything that is wrong, I asked simple questions, you cannot⁤ demean another service provider by saying its a paid advert when you are doing the⁣ same thing here. If the Indian guy is saying something that is wrong kindly point⁢ it out rather than falsely claiming that someone is a CFO etc etc.

Look, let's stick to the topic︃ rather than making personal or insulting statements which are completely useless, I'm a resident of︄ dubai myself and interested to know the happenings or discussing the way forward about a︅ lot of things. Goodluck

 

[algotrader]

Well, the reality is that everything related to the 0% FZ exemption is pure speculation‌ at the moment and nobody can give a definitive answer until the "cabinet decision" is‍ published (with just 2 months left until the new tax comes into force).
The best⁠ description of the situation I have found so far is from BDO:
https://www.bdo.global/en-gb/micros...arifies-tax-treatment-of-free-zone-businesses
So, this is not︂ just about the source of income but a FZ company needs also to meet other︃ conditions such as economic substance to qualify for 0%. Whether this is just about having︄ an office, having a director or BO with residency or tax residency in the UAE︅ or even a requirement to hire a local employee remains undetermined.
And then there is︆ point 5 ("Other conditions"): The minister can "prescribe" additional conditions.
To me this looks like︇ it got drafted like this to see the reactions of OECD and EU and being︈ able to amend it quickly with further conditions should UAE be put on blacklists (as︉ has happened).

 

[JackAlabama]

Just that its exactly not the same thing.⁣
Fred has countless posts and statements here. And most (if not all?) were proven to⁢ be correct and actionable advice.

Whereas that cannot be claimed from that other guy, which︀ I have no idea how they work and have my already formed opinion on it.︁
Then you know the usual way of how things work.... 😉

Well, I entertain the thought UAE could even fix climate change‍ for the eu and it wont help to avoid blacklists as long as it remains⁠ the #1 most popular place for people fleeing to from the biggest country in ursulaland.⁤

 

[Martin Everson]

UAE corporate tax and its effect on foreign investment​

https://www.arabianbusiness.com/opinion/uae-corporate-tax-and-its-effect-on-foreign-investment

 

[Fred]

@JackAlabama that's it - you give away so much for free and if you refuse‌ to give EVERYTHING away for free - you get response like the one from @A1988 .

The right people do understand and value our work here and get what they‍ are looking for while others going with there elbows through life.

 

[Anonymous1234]

Look Fred, if I said something that offended you then I apologise, I am⁣ not here to waste my time, I am happy to pay you for a consultation⁢ if you would have offered me, either ways I have a bigger problem than corporate︀ tax of 9% with UAE. But, its never one size fits all.

P. S Money︁ always talks and bulls**t only walks.

 

[Dandyline]

UAE is perfect if you don't have to use banks and PSPs in EU and‌ so on. 7-10K per year in maintenance is peanutes if you make 500k+ per year‍ tax free.

If you do business in EU, you can add Cyprus to the mix.⁠

 

[iansommersault]

hi all, it has been a while. hope all is doing good.

can someone tell‌ me again how accounting works in FZCO? i know bookkeeping is not required.

1. so‍ can i just simply fund it every time?

my source of income are always from⁠ out of uae. mostly usd.

2. do you guys take salary from your own FZCO⁤ every month even if you do not neede it and is the only employee (technicallyowner)?⁣

 

[European]

This was issued a couple of days ago and might be relevant for the conversation,‌ although it says the relief is not applicable to FZCs?

https://mof.gov.ae/ministry-of-fina...l-business-relief-for-corporate-tax-purposes/

 

[JustAnotherNomad]

Nobody knows for sure what will happen starting from‍ June. It seems likely that some form of accounting (or at least annual filings) will⁠ be required for all companies, including FZCOs.

@Fred
What is your take on the "permanent⁤ establishment" and "foreign company managed from the UAE" stuff?
Previously it seemed like a viable⁣ solution to get a Golden visa (if eligible) and then use an offshore company (e.g.⁢ US LLC, UK LLP). Now this seems like a huge risk as the offshore company︀ could be subject to corporate tax if it is managed by a UAE resident.
And what's worse, one would probably even risk huge fines for missing filings etc.
What's your︁ opinion about this?

 

[Au999]

To avoid risk of the US LLC being treated as a Dubai onshore,︁ have the FZCO be the single member of the LLC which will see the LLC︂ be treated as part of the FZCO

 

[JustAnotherNomad]

That's a terrible idea because⁠ it would trigger branch office tax in the US.

 

[Au999]

Not for a company with no US trade.

 

[JustAnotherNomad]

Interesting. I just discussed this with a US tax attorney and he confirmed there would‌ be no branch office tax if there is no ECI. But if you have clients‍ in the US, there is always some risk that there could be some. Still could⁠ be a good idea. I just guess that getting a bank account for a US⁤ LLC with a UAE single member could be difficult.

 

[kekmaw]

In reality though, would the UAE even know that you are the owner of the‌ US LLC's if the LLC is registered in Wyoming or something like that where shareholders‍ don't have to be in public records?

Not ideal, I get that but still.