Is an LLP or an LLC a way to avoid corporate tax in UAE?

[mgs999999999]

Let's assume the following hypothetical situation:

I have a company in the UAE, I am a tax resident there but I have 2 companies, 1 in the UAE, and another, a LLC in the US or a LLP in the UK.
Let's assume I have 100k benefit in the UAE company and the rest from the LLC or LLP, since there is no personal tax in the UAE, would that be a way to escape from the corporate tax in the UAE?

Best wishes,

 

[sinos]

Let's assume the following hypothetical situation:

I have a company in the UAE, I am a tax resident there but I have 2 companies, 1 in the UAE, and another, a LLC in the US or a LLP in the UK.
Let's assume I have 100k benefit in the UAE company and the rest from the LLC or LLP, since there is no personal tax in the UAE, would that be a way to escape from the corporate tax in the UAE?

Best wishes,

If both US LLC and UAE LLC (ha FZ company) have a qualifying activity (qualifying activity as per UAE CT rule) as a source of income, then , yes, in that case 0% tax.

 

[mgs999999999]

I think the qualifying income is irrelevant for my question

 

[Konstanz]

Let's assume the following hypothetical situation:

I have a company in the UAE, I am a tax resident there but I have 2 companies, 1 in the UAE, and another, a LLC in the US or a LLP in the UK.
Let's assume I have 100k benefit in the UAE company and the rest from the LLC or LLP, since there is no personal tax in the UAE, would that be a way to escape from the corporate tax in the UAE?

Best wishes,

No, LLC /LLP would have to pay tax in UAE

 

[mgs999999999]

No, LLC /LLP would have to pay tax in UAE

Why? LLC/LLP are not pass though entities? Should it not be considered “personal income” instead of “corporate income”?

 

[Konstanz]

Why? LLC/LLP are not pass though entities? Should it not be considered “personal income” instead of “corporate income”?

If it's business income it will be taxed even on personal level. As talked a lot. Both companies and individuals are liable of CIT

 

[mgs999999999]

Thanks.

Then, just for being tax resident in the UAE I will have to pay corporate taxes in the UAE for all the companies I own worldwide?

 

[Konstanz]

Thanks.

Then, just for being tax resident in the UAE I will have to pay corporate taxes in the UAE for all the companies I own worldwide?

Not for all. Only if you manage them out from UAE and they don't have substance in other countries