UAE clarification of Freezone Qualifying Income

[Konstanz]

Yes, I don't see any point why anyone would consider freezone
9% CIT is still low tax, but not 0% as before.. and you have to do audits, accounting , declaration

 

[SasuT]

Yes, I don't see any point why anyone would consider freezone
9% CIT is still low tax, but not 0% as before.. and you have to do audits, accounting , declaration

Audit/declaration/accounting.. Can I hire like a freelancer or needs to be someone recognized ?

 

[Checkmelater]

What a mess, the only real good thing this desert had were free zones with a straightforward 0% tax environment - no question asked.

When you opened a free zone company they advertised it as a 50-year 0% tax entity guaranteed by the free zone authority and now we see this huge chaos.

UAE seems not that reliable anymore and they aren't doing anything to stop all these rumors and no sense.


You cannot pay the salary you want. It has to be within certain limits and reasonable according to the standards otherwise it will be seen as a way to artificially erode and decrease the tax base (it is also written in the law).

I’m the owner of the company, I’m alone in the company and I’m doing e-commerce, all my profits are for myself I don’t need to keep money in the company, I saw that we can do this until 3M AED by a year, it’s okay if we can do this it’s still 0% or less than 2-3% in my case, I can accept to live in a desert

I don’t understand why we don’t have some official declaration, we have to search ourself it’s a little bit ‘weird’ 1 year ago it was clearly no tax for free zone company if they do business outside GCC lol

 

[jafo]

When you opened a free zone company they advertised it as a 50-year 0% tax entity guaranteed by the free zone authority and now we see this huge chaos.

Was it the free zone that promised this or the Dubai gov.?

 

[Checkmelater]

Guys, Qatar Free Zone it’s 0% right ? No corporate tax no income, nothing and easy to open like Dubai ?

 

[SasuT]

Guys, Qatar Free Zone it’s 0% right ? No corporate tax no income, nothing and easy to open like Dubai ?

I’m interested to know too

 

[OffshorePhantom]

Was it the free zone that promised this or the Dubai gov.?

It was advertised by the free zones in agreement with the government.

9% CIT is still low tax, but not 0% as before.. and you have to do audits, accounting , declaration

With UAE 9% CIT and accounting requirements there are other options that become more attractive like for example Malta's 5% effective CIT (and also better tax-treaty agreements and not seen as a tax haven by EU, EUR based), Madeira IBC, Hungary, and others. Those also avoid you from living in a desert.

 

[jafo]

It was advertised by the free zones in agreement with the government.

Are there official documents clearly stating this that were signed by both parties?

 

[SasuT]

It was advertised by the free zones in agreement with the government.


With UAE 9% CIT and accounting requirements there are other options that become more attractive like for example Malta's 5% effective CIT (and also better tax-treaty agreements and not seen as a tax haven by EU, EUR based), Madeira IBC, Hungary, and others. Those also avoid you from living in a desert.

Malta has 0% income tax ?

Hungary, I loved this country and I can defintely live here without problem. What are the taxes rate here? Corporate/Income?

Thanks.

 

[Cristero]

I don't see mention it anymore, but as a simple structure, HK company with an offshore status still has 0% VAT and 0% CIT. Is it because of the challenge to open a bank account?

 

[bnpsu]

If my year start is Jan 1, can I leave by Dec 31st this year with a US LLC to avoid taxation?

 

[OffshorePhantom]

Are there official documents clearly stating this that were signed by both parties?

Just google articles of government-owned medias till 2022 and before corporate tax was announced, there is plenty of them (now a lot of information has disappeared, probably being deleted to remove proof of the backstab).

Those free zones are regulated by the government so they can offer those incentives only in agreement with the government, they cannot do them on their own since they are government-regulated authorities.

Sheikh Mohammed creates new authority to oversee three Dubai freezones

The new entity will now oversee the operations of Dubai Airport Free Zone, Dubai Silicon Oasis and Dubai Commerce City.

gulfbusiness.com

https://twitter.com/x/status/1439952789589741572

Malta has 0% income tax ?

No, but if you structure this properly for example company with substance in Malta and you live in Portugal under the NHR regime you can receive dividends tax-free while living in Europe and not being in a blacklist desert tax-heaven.
If you want a more straightforward 0% tax you can live in a territorial tax country and manage a US LLC from there (cheaper and effective) for example Philippines or Panama.

 

[ecool]

I have written email from the freezone where they mention a guarantee of minimum 50 years without taxes. But now after asking about those guarantees they say “we cannot comment on guarantees done by our employees” even that this guarantee was also written on their website, but now it’s gone.
Most free zones have some involvement also from the government so I don’t understand how they were allowed to say such lies

 

[OffshorePhantom]

I have written email from the freezone where they mention a guarantee of minimum 50 years without taxes. But now after asking about those guarantees they say “we cannot comment on guarantees done by our employees” even that this guarantee was also written on their website, but now it’s gone.
Most free zones have some involvement also from the government so I don’t understand how they were allowed to say such lies

That's the point. How could you rely on a state which from one day to another could completely change the rules and cancel all past guarantees?

I see PIT coming in the next 5-10 years; it won't be like in high-tax Western countries but again it was already a trade-off to live in a desert to achieve tax-free status (and also rental and living costs have gone up in the last years) - now it is convenient to look around for alternatives.

 

[JustAnotherNomad]

Most free zones have some involvement also from the government so I don’t understand how they were allowed to say such lies

Welcome to the Middle East.

So there is still no clarification?

For those still speculating if there might be a difference between foreign and UAE clients (as @Fred originally indicated):

150. Are transactions with UAE domestic persons treated differently to transactions with foreign persons?
No. Transactions with UAE mainland and foreign persons are treated the same under the Free Zone Corporate Tax regime.

Source: https://mof.gov.ae/corporate-tax-faq/

It's over. Free zones are dead.

 

[Checkmelater]

Next country : Saudi and Qatar, actually in Riyadh there is only 8% humidity temp is 38
In dubai temp is 50 because of humidity, Free Zone Saudi company no corporate tax I think ? We have to check, I hope soon Stripe available in Saudi and Qatar, I can’t move because stripe isn’t available

 

[SasuT]

Next country : Saudi and Qatar, actually in Riyadh there is only 8% humidity temp is 38
In dubai temp is 50 because of humidity, Free Zone Saudi company no corporate tax I think ? We have to check, I hope soon Stripe available in Saudi and Qatar, I can’t move because stripe isn’t available

Why you don’t open US LLC to have Stripe?

 

[Checkmelater]

Why you don’t open US LLC to have Stripe?

No tax ? It could be interesting, I have to check Qatar or Saudi, this winter I will go to check

 

[troubled soul]

Woman fined in Dubai for posting abusive comments

Woman fined in Dubai for posting abusive comments

38-year old had accused real estate company of fraud on Google Maps app

gulfnews.com

Like I said It is not about the tax rate......It is about how law and order works here

 

[Paul Tudor Jones]

Woman fined in Dubai for posting abusive comments

Woman fined in Dubai for posting abusive comments

38-year old had accused real estate company of fraud on Google Maps app

gulfnews.com

Like I said It is not about the tax rate......It is about how law and order works here

"NOOO YOU DON'T UNDERSTAND... The US and Europe are the real dictatorships!!! You need to move to the UAE to enjoy true freedom!!" LOL