Here are my 2 cents... (warning, long answer. I found your case interesting and really dove into it)
This is a fairly complex situation involving cross-border corporate structuring, personal tax residency, and transparency requirements, with three jurisdictions in play: USA (Delaware or Wyoming LLC, most likely), UAE (consulting entity), and Poland (tax residency and potential CFC exposure).
Current summary
You and your partner are UAE residents of ~3 years, now moving to Poland for >183 days, making you Polish tax residents.
You own a USA LLC (treated as a pass-through by the IRS), and a UAE mainland company (your operational entity).
The UAE company invoices the US LLC, and you personally get paid from the UAE company, not the US LLC.
You are primarily concerned about avoiding or reducing US LLC pass-through taxation, now that Polish tax residency could bring global income into scope.
Risks and Considerations
Polish Tax Residency
Once tax resident in Poland, global income becomes taxable under Polish law.
Poland does not ignore "look-through" entities like US LLCs. If you are the ultimate beneficial owner, Poland can tax that income.
Controlled Foreign Company (CFC) rules could be triggered if:
1. You control >50% of the UAE company or US LLC.
2. These entities are considered low-tax (which UAE likely still is).
3. Failure to declare foreign entities or income could eventually become a legal issue under the Common Reporting Standard (CRS), which Poland follows. UAE banks are now largely CRS-compliant.
LLC Pass through tax
As non-residents, if the LLC does not have US effectively connected income (ECI), you may not owe federal tax. However:
Sales into the US, warehousing, US-based employees or contractors, or other "US trade or business" indicators could trigger ECI, meaning the LLC must file and pay US tax.
Even without ECI, as pass-through owners, you are still required to file Form 5472 and maintain proper compliance. Failing to do so comes with significant penalties ($25,000 minimum).
Polish view of UAE payments
Poland may see UAE payments as a profit distribution or related-party transfer, especially if it is artificially reducing the US LLC’s profit.
They could apply transfer pricing rules or recharacterize the arrangement.
Your options
One; make the UAE company the owner of the US LLC
This is possible, and may reduce personal pass-through exposure.
Instead of personal ownership, make the UAE entity the sole member of the US LLC.
This way, the income passes through to the UAE entity, which is not taxed in UAE, and you draw salary from there.
Polish authorities may still apply CFC rules if the UAE company is 100% owned by you. However, this can create distance between personal and LLC profits.
Benefits:
Legally separates LLC income from your personal Polish tax base (at least in theory).
May reduce risk of US pass-through income being directly taxed in Poland.
Risks:
Polish tax authorities could still "see through" the structure under CFC or anti-avoidance rules.
Needs formal documentation and restructuring of ownership (US and UAE side).
Two; shift profit to UAE via service agreements
You already do this, but it must be at arms-length.
If you increase the payment from the US LLC to UAE company, you reduce US LLC profits.
Just be sure the UAE company is doing actual work (consulting, marketing, management) and you have proper contracts and invoices.
Again, transfer pricing principles apply, ensure this wouldn’t be considered artificial by Polish or US authorities.
Benefits:
Easy to implement.
Keeps LLC profit lower.
Risks:
Could be challenged by Poland or the IRS.
May increase visibility and audit risk.
Three; disregard/hide the US LLC
Poland is a CRS member, and UAE banks now report foreign ownerships and transfers.
The US does not share beneficial ownership details, but your personal transfers from UAE or US companies could trigger suspicion.
Failing to disclose a foreign entity or income source could lead to significant penalties and criminal exposure.
NOT WORTH IT.
What I would probably do if it was my situation
Transition US LLC Ownership to UAE Entity
Legitimize it as a corporate structure.
Polish tax might still apply under CFC rules, but you avoid personal pass-through.
Get Professional Tax Advice in Poland
Work with a Polish international tax specialist. They can help:
- Interpret CFC rules in your case.
- Review your UAE service agreements for transfer pricing compliance.
- Advise on filing/reporting requirements.
Do Not Hide the LLC
Polish tax authorities can receive data from CRS, FATCA, and EU cross-border reporting (DAC6).
Transparency now protects you more than secrecy.
I furthermore would likely research
Establishing a non-UAE holding company (e.g., in Singapore or Estonia) to own the US LLC and UAE company, further removing personal exposure.
Use tax deferral strategies like keeping earnings in retained earnings within the UAE entity, rather than distributing them.
Look into Polish expat tax schemes (if any) to reduce tax burden for new residents.
Your instincts are pointing in the right direction; ownership via UAE entity and adjusting profit flows are useful tactics. You are now in a high disclosure jurisdiction and should treat tax planning as a compliance first, audit proofing exercise. If this year is substantial income wise, even more reason to formalize things with help from someone experienced in Polish tax law for digital entrepreneurs.
The above is a your first step in the dozen or more conversations you soon will hold in the USA, UAE, Poland and perhaps in Singapore and or Estonia. Good Luck. This is not an easy quest and will cost you dearly. Afterwards you will however have a solid base which will work for at least 2-6 years provided you audit the setup every 2 years or sooner when substantial treaty or tax law changes are on the horizon. Question yourself if the extra and continuous cost for the setup outweigh the avoided tax.
