Free Zone company UAE - Residence Morocco

[Checkmelater]

Hello! I currently have a Free zone Company in the UAE, and I also reside in the UAE. I am considering leaving the UAE to live in Morocco because the cost of living is cheaper, the climate is better, and the country is developing rapidly. The real estate market prices remain very low in Morocco, whereas in Dubai, everything is becoming very expensive. I wanted to know how taxes work in this situation. Should I keep my company in the UAE since I have an online business, and transfer dividends to Morocco, or should I transfer a salary to Morocco and keep the rest of the money in the company in the UAE to minimize taxes? Is there a better setup than transferring as a salary? Perhaps through dividends?Thank you for your responses.

 

[OffChance]

I believe if you move to Morocco then ur company basically becomes tax resident of Morocco, so legally u will have to pay taxes like a Moroccan company would

 

[Sols]

On paper, Morocco has a territorial tax system. However, in reality, companies end up being taxed on their worldwide income if they are centrally located in Morocco. It might be possible to do some sort of quasi-remittance-based tax arrangement but nothing I can recall seeing in action.

I think most likely, your UAE FZ company ends up tax resident in Morocco, which means it has to pay tax just like a local Moroccan company. Then it's down to whether you tell anyone and/or whether the Moroccan tax authority catches you. But that's not the same as a structure being legally solid.

 

[Ness]

If you are tax resident in UAE, stay there and open a personal bank account in Morocco. You can transfer the money you need from UAE to Morocco. Since you have your center of interest and you live in UAE, Moroccan authorities will not ask you any question. But transfer the money from your personal bank account in UAE, not from your company bank account. If any day the Moroccan bank ask you the proof of earning, you show them your salary slips.