Now that most free zone dubai companies have to pay a 9% tax on their profits, can some or all of it be offset via a salary payout to a resident sole owner?
For example:
one is a resident of dubai and the sole owner, director, and employee of their own dubai company.
The dubai company makes 1M USD in profit, then pays a 1M USD salary to the person, reducing its corporate income to 0, paying 0 in tax.
The person receives the 1M USD and pays 0% on their salary (personal income in dubai is taxed at 0%)
is this correct, or is there a nuance with personal taxation with the new taxation rules?
For example:
one is a resident of dubai and the sole owner, director, and employee of their own dubai company.
The dubai company makes 1M USD in profit, then pays a 1M USD salary to the person, reducing its corporate income to 0, paying 0 in tax.
The person receives the 1M USD and pays 0% on their salary (personal income in dubai is taxed at 0%)
is this correct, or is there a nuance with personal taxation with the new taxation rules?