You may very well be right about that. If UAE mirrors US law, income from an LLC would be personal income (i.e. no tax). But if they view the LLC as a corporation or if UAE views personal income as "doing business", it's possible corporate tax would apply.If it's treated as pass-through by the UAE doesn't that mean it's like a natural person doing business. Then UAE corp tax applies but only if turnover is above 1M AED.
Just to add to how unclear things are! I think I'll stay below 91 days in the UAE until we know what happens in practice with the UAE corp tax.
There was the possibility to fill in a direct Questionnaire to get Clarification from the FTA - this was at least how it was promoted not sure what the response did look like at the end of the day.Can we ask an exemption to FTA ? It means, if I think I can be exempted can I ask FTA if I’m exempted and obtain an exemption tax certificate ? Because if I think I’m exempted and I’m not I will get fine …….
You mean what he said applies only to personal income?Well, the text he shows is correct, but what he says is not quite correct.
The text says there is no corporate tax for a resident or non-resident natural person with a turnover above 1M AED. This is not a recent change, this has been known a while. See Cabinet Decision 49, Article 2: https://mof.gov.ae/wp-content/uploads/2023/05/Cabinet-Decision-No.-49-of-2023.pdf
But for a company, ie a "juridical person" there is still corporate tax on profits above 375K AED. This hasn't changed.
Applies to turnover, not profit, for business income earned as an individual. So not all personal income, like not a salary, and real estate income is also excluded I think.You mean what he said applies only to personal income?
Could be, but they wrote specifically about that and you even have to file if you run an unincorporated business as a natural person.Applies to turnover, not profit, for business income earned as an individual. So not all personal income, like not a salary, and real estate income is also excluded I think.
But the interesting question is if income from a US LLC counts as income earned as a natural person.
What do you mean by „compliant“?Can someone enlighten me about what happens if an FZCO does absolutely nothing? Will it not be compliant or will it be compliant but treated as a mainland company?
Yes, until 31.12.2026.Looks like you can opt for small business relief if your turnover (not profit) is under 3 million AED. Plus, very simplified accounting and no auditing by the looks of it. This includes Freezone businesses.
The UAE government has provided a privilege, called the Small Business Relief (SBR), to small businesses in the UAE to ease the implementation of corporate..www.khaleejtimes.com
Looks like very good news for a lot of people