ESR and UAE

[JackieTsan]

Googling around I see around 5-6K . And also requires auditing, account filling etc which all can be a lot of costs more.. i understand it needs all yes?

 

[daniels27]

If they need audit, I am out.

 

[canomad]

Now in your case there is technically no problem as the UAE company is also tax free. Hence you are shifting profits from the tax free island to the tax free UAE. But they is no exception for that. If your UAE company is connected to the island company, you cannot do it.

Maybe give us some more detail about the owners, UBO, shareholders, authorised persons of the companies. Any connections there?


If the invoices are between the ESR company and an unrelated client, there is no need to worry.

Just don't use the ESR company to sell services to your company. You can buy service from your company. Any don't use the ESR company to buy goods from you company. You can sell them goods.

wondering what you think about my scenario.

I am billing clients from a US LLC and then moving all profits to UAE LLC. Most of the work CIGA is outside of UAE.
I have a a bit of contractors that work in Canada because my field is very specialized i cant find any workers outside of North america.

Should i be going every month for a week or so to batch my projects and do the core solutions in my UAE apartment essentially? Me and my family ahve residency visas, i have a nice apartment , registered corp in meydan

 

[daniels27]

How are you moving the profits to the UAE?

 

[canomad]

How are you moving the profits to the UAE

Dubai Entity is Invoicing the US entity for the entire amounts.

 

[daniels27]

That's good. The US one is not tax transparent?

While most layers will tell you to go there often, I personally think you could get along not doing so. But if you want to be on the safe side, try to be the and do essential business management there.

 

[canomad]

That's good. The US one is not tax transparent?

While most layers will tell you to go there often, I personally think you could get along not doing so. But if you want to be on the safe side, try to be the and do essential business management there.

yes the US LLC is disregarded/ transparent and not taxable in the US.

is that all they will care about in the forms? they say Essential Management and Core income generating activities, is this me working on clients solutions or can this be stretched lol. thanks for the response a bit freaking out over this.

 

[daniels27]

If the LLC is tax transparent, you have problems.

How UAE treats a US LLC.

I feel to have read all the relevant posts on the forum + the UAE corporate tax law + their FAQ, and I cannot find any indication of how UAE would treat, let's say a US LLC that has a foreign director in a country that would not care much about PE. The US LLC being be owned as a single member by...

www.offshorecorptalk.com

"if the foreign LLC is effectively owned and managed from UAE, then 9% UAE tax applies."

I do not know what you are trying to achieve. But basically, you need to use your US LLC and register that one in the UAE and then pay 9% tax on the profit. There is no need to invoice as the US LLC is already tax resident in the UAE.