Dubai is dead, any alternative to the free zone 9% tax?

[JonnyStekkino]

Apparently they introduced the 9% tax also for free zones except qualifying activities, which are very few and do not cover most of the people in Dubai.

Anyone have any idea on alternatives for someone that does not live in that specific country?

Maybe Hong Kong, an US LLC or an UK LTD?

 

[Tomy223]

Uruguay

 

[Jerry1911]

Look into setting up a Romanian micro company. You could combine it with residency in the UAE, Switzerland or pretty much any EU country as long as you own the shares through a local legal entity (0% WHT in that case).

 

[JonnyStekkino]

What about Hong Kong Company + Bahrain Personal Residency?

Technically should be 0% taxes everywhere and 0 days required of stay for each country.

 

[Martin Everson]

Apparently they introduced the 9% tax also for free zones except qualifying activities, which are very few and do not cover most of the people in Dubai.

Anyone have any idea on alternatives for someone that does not live in that specific country?

Maybe Hong Kong, an US LLC or an UK LTD?

Have a look at below thread.

https://www.offshorecorptalk.com/threads/aifc-kazakhstan.41202/
However you need to explain your situation a bit more.

 

[JonnyStekkino]

Have a look at below thread.

https://www.offshorecorptalk.com/threads/aifc-kazakhstan.41202/
However you need to explain your situation a bit more.

Can't see it, it's mentor group gold.

Btw right now I have everything in Dubai ( Residency + Company ), and living in the Philippines (Tourist Visa), just go to dubai a couple of times a year to maintain everything.

The thing for me it's to keep paying 0 taxes.

Considering that I can get also a Bahrain residency easly (without company)

 

[Martin Everson]

Can't see it, it's mentor group gold.

Oh whoops....my bad .

It was just the below option..

https://digitalresident.kz/

 

[thomasparra]

Can't see it, it's mentor group gold.

Btw right now I have everything in Dubai ( Residency + Company ), and living in the Philippines (Tourist Visa), just go to dubai a couple of times a year to maintain everything.

The thing for me it's to keep paying 0 taxes.

Considering that I can get also a Bahrain residency easly (without company)

Is paying a bit of tax (2-8%) really THAT bad honestly? Especially as if you take out a salary, unless disproportionate would be untaxed, so you would be looking on the low end of 2-3%, unless you are pulling millions and millions every year. And in that case it would be generally unwise to take everything out from the company, you can invest it in a sister company thru a holding in real estate, stocks etc...

 

[latindev]

Uruguay

Be careful with this, Uruguay has requirements for this and it's not just opening the company

 

[jafo]

Is paying a bit of tax (2-8%) really THAT bad honestly?

For me, it's NOT the 9% at all. I pay that in Zug, CH. It's being targeted by authoritative tax authorities there for missing a deadline or someone wanting me "gone". Also, I dig Zug. It's just so peaceful!

 

[Tomy223]

Be careful with this, Uruguay has requirements for this and it's not just opening the company

Better than UAE

@Martin Everson had to move out from there half naked

 

[sinos]

Apparently they introduced the 9% tax also for free zones except qualifying activities, which are very few and do not cover most of the people in Dubai.

Anyone have any idea on alternatives for someone that does not live in that specific country?

Maybe Hong Kong, an US LLC or an UK LTD?

if you don't mind, what's the nature of business for the UAE FZ company.

 

[latindev]

Better than UAE

@Martin Everson had to move out from there half naked

Was just saying haha, not everybody knows that Uruguays requires you to rent a +$1000 office and hire at least 1 +$1000 employee if you are a one person business in order to give you the access to the free zone so basically you are paying ~$24000 just for being there... Good thing is that Uruguay Free Zone laws are extremely more stable than the UAE

 

[Tomy223]

Was just saying haha, not everybody knows that Uruguays requires you to rent a +$1000 office and hire at least 1 +$1000 employee if you are a one person business in order to give you the access to the free zone so basically you are paying ~$24000 just for being there... Good thing is that Uruguay Free Zone laws are extremely more stable than the UAE

That's peanuts baby …

 

[latindev]

That's peanuts baby …

I know, that's why a few of the biggest LATAM companies are there but if OP is already complaining for the 9% in UAE... I don't think the ~24k min expenses at the corporate level + 12% tax rate when he decides to withdraw the earnings will be desirable for him

 

[TheCryptoAnt]

Apparently they introduced the 9% tax also for free zones except qualifying activities, which are very few and do not cover most of the people in Dubai.

Anyone have any idea on alternatives for someone that does not live in that specific country?

Maybe Hong Kong, an US LLC or an UK LTD?

HK is an option, Seychelles too.
You can also do Estonia and finesse it a bit when you take a salary by using another company for 'insert some bs here' services.

 

[sergeylim88]

Seychelles how?
how will you bank with syechelles ibc?

 

[Tomy223]

I know, that's why a few of the biggest LATAM companies are there but if OP is already complaining for the 9% in UAE... I don't think the ~24k min expenses at the corporate level + 12% tax rate when he decides to withdraw the earnings will be desirable for him

As I know, Dividends are tax free there

 

[JonnyStekkino]

The main issue with this non sense juristictions is the missing support from Banks / Payment Gateways.

Even Bahrain is not supported by stripe at the moment even tho bank are not bad.
Seychelles is basically not supported by anyone.

Hong Kong looks way more interesting at this point than Dubai to me.

Even without the offshore status approved it's still 8.5% (0.5% less than Dubai) and waay more cheaper to incorporate and manage, Dubai free zone licenses are starting at 4k$ a year, where HK can be as low as $600.

 

[latindev]

As I know, Dividends are tax free there

In order to claim the payments from the company to you as dividends, you can't do anything for the business. Otherwise you're considered as a "foreign employee" of the company and you must pay a flat tax rate of 12% on your income (using a separate business in another country could help but it depends)... What most people do is that they assign themselves a local rate salary for managing the business (for example ~50k a year) so they only pay 12% on that and later in a few years they withdraw the earnings