UAE clarification of Freezone Qualifying Income

[Konstanz]

Yeah, anything "free for life" in UAE, you know it will cost something after a month. Such guarantees aren't worth anything in the UAE.
Try getting a "free for life" credit card - one month later, they will change the rules. You can sue them if you don't like it, good luck.

The same will be I guess with personal income tax. It will remain 0% for some "qualified personal income" like retirement pension from abroad, or mother gift
You cannot say they lied, because it's still 0% income tax for manufacturing and aviation
Some part of personal income tax is already hidden through 9%CIT business activity, when you do as physical person

 

[troubled soul]

OMG it is still on their official website

Frequently Asked Questions about the Dubai Multi Commodities Centre (DMCC)

These FAQs are designed to provide a better understanding of DMCC, our licenses and our other legal and technical tools.

www.dmcc.ae

there people are another level psycho....

 

[meze99]

Very good analysis of Dubai:

 

[Alonzo]

Very good analysis of Dubai:

Adam definitely got blacklisted in GCC countries lol

As soon as he lands in Dubai they will arrest him

 

[jafo]

Some part of personal income tax is already hidden through 9%CIT business activity, when you do as physical person

How this would play out for someone who gets a settlement from a lawsuit? Will they be taxed at 9% or 0%?

 

[Konstanz]

How this would play out for someone who gets a settlement from a lawsuit? Will they be taxed at 9% or 0%?

I think it would be 0% for now. But let's say you have freelance visa in uae freezone and do business. So it will be taxed 9%CIT. So, it's de facto personal income tax

 

[Dandyline]

This tax will clean out some rich / quality people for sure.
Why you need Dubai, if you have money for Monaco?

About lower than average person this all bureaucracy (not the 9%CIT itself) will not be worth hassle. Better just do Cyprus/Malta/Estonia etc.

Btw Estonia has 0% profit tax. You only pay 20% when you payout dividend to yourself!


Well maybe for Russians or some average African businesses men this would not change much, because they have no other options.
But if you have EU passport you have more options..

I think UAE government also count that with existing inflow from Ukraine and Russia they would do pretty well. Because they will pay tax anyway.

Important to remember that Russians, Ukrainians, Arabs, Africans, Indians don't have that many options. So for them, UAE is paradise.

You will probably see less Europeans, since they can just use Cyprus with better banking options and similar taxes.

 

[TheCryptoAnt]

Estonia? 20% total tax (which will be raised to 22% in 2024)

Loans to other companies are not taxed

 

[Marzio]

Loans to other companies are not taxed

Man you're smart

SmarCryptoAnt

 

[TheCryptoAnt]

Man you're smart

SmarCryptoAnt

hey theres trillions of us for a reason innit

 

[bnpsu]

Loans to other companies are not taxed

Is there no limitation to pay the loan back? In some countries if a loan isn't paid back to you personally after 1 yr, it's considered a dividend

 

[TheCryptoAnt]

Is there no limitation to pay the loan back? In some countries if a loan isn't paid back to you personally after 1 yr, it's considered a dividend

I doubt that if my company lends another company money, and I dont own the other company, my company can be made responsible for their failure to repay said loan.

I dont think this holds in court.

 

[random000]

If you have a one owner fze consulting company without any activity on business bank account and you are selling crypto p2p to personal bank account up to 5k usd per month, is that taxed for 9%?

 

[SasuT]

Important to remember that Russians, Ukrainians, Arabs, Africans, Indians don't have that many options. So for them, UAE is paradise.

You will probably see less Europeans, since they can just use Cyprus with better banking options and similar taxes.

To be considered fiscal resident in Cyprus, it’s 183 days too ?

I hesitate between UAE and Cyprus (I’m french). But if UAE makes it to 90 days/year to be considered as fiscal resident, I’ll go with that

 

[Dandyline]

To be considered fiscal resident in Cyprus, it’s 183 days too ?

I hesitate between UAE and Cyprus (I’m french). But if UAE makes it to 90 days/year to be considered as fiscal resident, I’ll go with that

60 days in Cyprus.

 

[SasuT]

60 days in Cyprus.

Very interesting.
Corporate tax is 15% ?
What about income tax?

 

[Dandyline]

Very interesting.
Corporate tax is 15% ?
What about income tax?

Corp tax 12,5% .. 0% on dividends.

 

[manukahoney]

You will probably see less Europeans, since they can just use Cyprus with better banking options and similar taxes.

Having been doing business both in Dubai and UAE for some time, Cyprus is no way a paradise:
- complex tax rules (VAT, CIT, employees taxes etc) - the cost of running a Cyprus company is comparable or in my personal experience higher than a similar setup in UAE.
- terrible local banking. The same goes to Dubai, so no major difference there, again most of the folks rely on EMIs or Swiss banks to work with daily banking and treasury accordingly. Some people have a short memory, please google the banking crisis on Cyprus in 2008/9.
- property prices are crazy inflated by the same influx of Russians and ex-CIS residents. They call it "Limassolsk" now. The only difference - in Dubai you have plenty of nice areas to live, on Cyprus it's basically two towns and a very limited choice. Don't expect high finishings or great amenities unless you are ready to pay several mil EUR for your own dream house.
- forget about shopping, luxury things, fine dining, 1h delivery, massages for 40 EUR - you will not find anything like these on Cyprus
- personal taxes still apply. Non-dom helps to optimise the structure and 60-days tax residence is a real boon, but you still have to report your personal tax affairs.
- very low level of service except hospitality industry. Nepotism and general south laziness in every aspect of life - from doctor appointments to notary services.
- EU regulations everywhere (for those who deal with the countries that are not in the best relations with the EU)

There are some advantages of Cyprus when comparing to Dubai:
- Common law
- internationally recognises jurisdiction, no issues with blacklists
- better climate in Summer (however much worse in Winter time)
- better connected to Europe, however you mostly get Easyjet or "Club Europe" class to travel (not a big deal, but for those who spend their life in the plane cabin that matters)
- cheap, healthy and delicios food - you can easily find the same food in Dubai, but at 2-4x price.
- better quality of construction in the high-end apartments and villas and an option to build/customise your own place
- good UK schools where your kids will learn to speak English without Indian accent. Although, good luck getting there now.
- an option to get a Cyprus citizenship
- better nature with more variety
- better air quality (if you stay away from the roads)

TLDR IMHO: Dubai is more flashy, more safe, better suited for high-end lifestyle and people dealing with the East. Perfect for a one-man business setup, zero tax on personal level, small/zero taxes on coprorate. Cyprus is more under the radar, sleepy but good for family and working with EU, good for a medium/big sized business, low taxes on personal level (with non-dom), low/medium taxes on corporate.

 

[sergeylim88]

personal taxes still apply. Non-dom helps to optimise the structure and 60-days tax residence is a real boon, but you still have to report your personal tax affairs.

if you are non-dom there is no income tax on dividend and interest
@CyprusLawyer101 can confirm this

 

[bountymounty]

I would anytime go Dubai over Cyprus. Have been both places for weeks each. Dubai has much more to offer in life style for younger people. Cyprus is for retired people with lot's of money and no need for any noise.