What structure to wrap UAE residency (and reduce US taxes)

[jazzybell]

marzio said:
If you don't have any US presence and work is performed outside the US I don't it's the case.
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When you work with a US client, the client will ask you to file a W8 form and once you put their UAE, this means the US client should withhold 30% of the payment amount to you, that's the US client's obligation.
of course, there is a case when the client doesn't hold it and it could be a case for them to pay 30% on top of your contract.
in general, if they have good accounting, they will withhold for sure.
I'm talking about B2B contracts.

if you sell products it's a different story but if you provide self-service, I can't see any other options.

 

[Marzio]

“All persons ('withholding agents') making US-source fixed, determinable, annual, or periodical (FDAP) payments to foreign persons generally must report and withhold 30% of the gross US-source FDAP payments, such as dividends, interest, royalties, etc”

https://taxsummaries.pwc.com/united-states/corporate/withholding-taxes
Why the US client should ask to file the W8 form?

 

[jazzybell]

marzio said:
Why the US client should ask to file the W8 form?
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Because if you operate as US entity and would like to put your payment to expenses then, service provider have to file W8 - for non-residents or W9 for US residents.
So, as UAE resident you will file W8

 

[Marzio]

I didn't know that without W8 payments couldn't be accounted as expenses. I guess then what you are saying is correct.