Does CRS reporting matter in this case?

[treblepebble]

I am looking to setup a UAE business entity for cashing out crypto gains as I understand that there is no tax in this scenario.

I have read a lot about CRS in the last few days about the various issues about reporting happening.

As I am not looking to hide any funds, and just using the UAE business to get 0% tax, does it matter if there is CRS reporting?

Perhaps there is something I have misunderstood

Thank you

 

[Sols]

Do you live in UAE? Then no, no issue.

Do you live outside of UAE? Then you will likely end up paying local tax after the bank account in UAE becomes known to your local tax authority.

 

[Fred]

Well.

Just had yesterday with @Gazza an inperson meeting with someone from the CBD Elite Banking Team who was telling us that he had seen no single reporting since 2018 for any Residence Visa holder.

Additional to our surprise he was even claiming that he haven't seen any non-resident Bank Account been reported ever.

Both of us were very surprised as we are aware that Residence Visa holders are non reportable under CRS but non-resident for sure. However he keep this saying despite showing him everything that is discussed here in the forum.

However for your provided description and without any trackrecord in a common business the CRS will be your last problem. Much more you need to have a good banker and service provider that are both willing to sell your whole business plan and (in case) lack of business trackrecord to the compliance team.

So my personal recommendation for you if the venture is really serious - come to Dubai and speak to several different bankers like we do - every time we have the chance to speak somone from aboth inside a bank the reply is always the same.

I think the point of the gentlemen before me @Sols is that once you want to remit the funds back (bottom line back to your country of citizenship) you will face questions for significant amounts and have to proof where you did live during you made this funds. However again the CRS as well as the UAE side won't be any problem.

 

[coolerx]

I think the point of the gentlemen before me @Sols is that once you want to remit the funds back (bottom line back to your country of citizenship) you will face questions for significant amounts and have to proof where you did live during you made this funds. However again the CRS as well as the UAE side won't be any problem.

@Fred I want to ask the following: If the company's profits (assuming the company is registered in Dubai) are transferred to a personal bank account, opened again in Dubai under the company owner name, like paying yourself dividends essentially, then what is the problem to spend the funds in your home country or any other country for that matter?

Are there any specific restrictions for personal bank accounts opened in Dubai?

Thanks!

 

[Fred]

@Fred I want to ask the following: If the company's profits (assuming the company is registered in Dubai) are transferred to a personal bank account, opened again in Dubai under the company owner name, like paying yourself dividends essentially, then what is the problem to spend the funds in your home country or any other country for that matter?

Are there any specific restrictions for personal bank accounts opened in Dubai?

Thanks!

No restrictions for personal bank accounts opened in Dubai at all.

You get your IBAN and SWIFT code wire facility, major currency accounts in EUR, USD and GBP, MasterCard and Visa - both debit and credit card.

With some banks you can even get a traveller card so you don't have any FX rates by spending money outside the UAE.

Daily ATM limits are pretty high with average 10.000 - 25.000€.