UAE FZ company + Malta non dom

[A1988]

New corporate tax regime is unavoidable 'bitter pill to swallow' - Clyde Caruana

Finance Minister says he prefers to change the regime now

timesofmalta.com

Thanks for sharing, he said he would announce it in the next budget and implementation could take up to three years. Still there could be workarounds for non dom regime for company and individuals other than the rate of 5%?

 

[JimBeam]

Yes, article says that the implementation may take up to 3 years, and also could be limited only to big companies (with 750M turnover/year)

 

[A1988]

Yes, article says that the implementation may take up to 3 years, and also could be limited only to big companies (with 750M turnover/year)

Easily the best option in europe for tax optimisation?

 

[Mr Gus]

Here's the case:
A free-zone company in Dubai is operating for couple of years now. Company has two shareholders (partners) 50% each. One of them is the director of the company other one is just shareholder. The director guy wants to move somewhere closer to Europe with his faimly so he could visit his family (aged parents living in Europe) more often.

Could he move to Malta non-dom and pay the tax only on the amount he brings in to the island?
Will his UAE company be considered as tax resident in Malta or not?

Thanks

If he would make the other shareholder director as well and do all board meetings in Dubai you would be good.

Not sure where the family of your client is from but Dubai is not that far from Europe and Malta is in the far south or Europe.

 

[koohl]

Always make sure the management and control of the company is in Dubai. You need substance!

 

[JimBeam]

If he would make the other shareholder director as well and do all board meetings in Dubai you would be good.

Not sure where the family of your client is from but Dubai is not that far from Europe and Malta is in the far south or Europe.

That's one of the options we had in mind.

Europe is not that far - but It's still 5-6hrs vs 2hrs of flight to Malta so the difference is still significant.
Traveling from Dubai to Europe will take you an entire day: at least 1hr to reach the airport, 2 hours at the airport, 5-6 hours of flight time, time on the other airport etc. It easily goes above 10hours while Malta would be 4-5hrs max.

Always make sure the management and control of the company is in Dubai. You need substance!

Noted, thanks for your input.

 

[johnwickert]

If the director of the UAE free-zone company moves to Malta and becomes a Malta non-dom, he would only have to pay tax on the income he brings to Malta.

 

[JimBeam]

If the director of the UAE free-zone company moves to Malta and becomes a Malta non-dom, he would only have to pay tax on the income he brings to Malta.

Okay.
That's how I would say as well.

But won't the UAE company be then looked as tax resident of Malta.
Anyone has first hand experience with this?

 

[MarkusCostigan]

Okay.
That's how I would say as well.

But won't the UAE company be then looked as tax resident of Malta.
Anyone has first hand experience with this?

In my opinion you should write directly to CFR Malta.

 

[johnwickert]

Okay.
That's how I would say as well.

But won't the UAE company be then looked as tax resident of Malta.
Anyone has first hand experience with this?

No, the UAE company would not be considered a tax resident of Malta simply because the director, who is also a shareholder of the company, is a Malta non-dom. Tax residency of a company is determined by factors such as where it is incorporated, where it is managed and controlled from, and where its operations take place. The fact that the director is a Malta non-dom may have implications for his personal tax liability, but it would not automatically make the company a tax resident of Malta.

 

[ShillGates]

https://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-residency/Malta-Residency.pdf