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JackieTsan

JC
Mentor Group Lifetime
Oct 17, 2019
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#1
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Hello to all,

I am signed up to several whats'app, telegram groups etc, trying to get the info / updates for UAE.

Where is the situation at today?

Does the offshore (RAK, etc) are been finally taxed? My accountant asked me to do tax registration, which I did...

What about SBR (Small Business Relief)? Does it still exist and it's under 3.8M AED? So anyone that has total income less than 3.8M AED is not paying tax? Is it still valid?

I am still asking around but noone can give a clear answer. What is happening.. Shall we close and move out of this habibian nightmare?

Please suggest.

Thanks to everyone!
 
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#3
Thank you @bountymounty but nothing recent - updated. I try to get a summary about this. What is the current status.
I read around that offshore are not beeing taxed. In this case why they register for tax?

I'll search again anyway, many thanks!
 
#5
Clank said:
Offshore RAK is not taxed.
Click to expand...
All businesses (including free zone companies) with their first financial year on or after June 1, 2023, must file for corporate tax registration in the UAE in the form and within the timeline set out by the authority, except in cases where the Minister prescribed otherwise.

Furthermore, any juridical person incorporating, establishing, or recognizing itself in the UAE on or after 1 March 2024 must submit a tax registration within three months of the date of incorporation, establishment, or recognition.

https://mailchi.mp/rakicc/qnewsletter-17769849
 
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#6
Thank you!
So will all pay tax?
And what about small business relief?
Is it valid? It’s sure that all companies under 3.8m AED can apply for small business relief and pay 0 tax?

Who can answer officially? I can’t believe they are so unorganized and they don’t announce anything officially when on the same times the companies are running. It can’t be happening, somewhere must be the answers.
Thank you
 
#7
Actually everything is announced by https://mof.gov.ae/united-arb-emirates-ministry-of-finance/

Not all will pay tax.
It depends on the type of income and how much income the company generates.
Charities might be exempt, for example.

E.g., if your RAK offshore company has a permanent establishment abroad and pays tax abroad then such taxed profits might be exempt from tax in the UAE.
 
#9
I read it as much as I can, does not mention anything for small business relief. According to to what it says, as is managed from UAE, then is taxable. The important that might save the issue is the small business relief, is it active? In Some seminars they said is just a tick and you apply for it, but is it true ?

Thank you
 
#10
Don said:
All businesses (including free zone companies) with their first financial year on or after June 1, 2023, must file for corporate tax registration in the UAE in the form and within the timeline set out by the authority, except in cases where the Minister prescribed otherwise.

Furthermore, any juridical person incorporating, establishing, or recognizing itself in the UAE on or after 1 March 2024 must submit a tax registration within three months of the date of incorporation, establishment, or recognition.

https://mailchi.mp/rakicc/qnewsletter-17769849
Click to expand...
I don’t get it why an offshore company owned by someone abroad should pay taxes in the UAE?
 
#11
Clank said:
I don’t get it why an offshore company owned by someone abroad should pay taxes in the UAE?
Click to expand...
Under the UAE CT Law, companies and other juridical persons that are incorporated or otherwise formed or recognised under the laws of the United Arab Emirates will be considered resident persons.
This covers juridical persons incorporated in the United Arab Emirates under either mainland legislation or applicable Free Zone regulations.

Foreign companies and other juridical persons may also be treated as resident persons for CT purposes where they are effectively managed and controlled in the United Arab Emirates.
 
#12
So, it seems that is time to go for most of us, especially if living in the UAE. Imagine living in UAE and you also have to pay tax for another company you have offshore; pay tax IN UAE as ts managed from there… amazing ways that countries find to make everyone move away. Wait and see a mass exit very soon.. Desert!!!
 
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#14
brianK said:
What would that mean in reality. You simply have zero activity in the UAE right ?
Click to expand...
Means you prove you pay taxes in your country of residency for the company, as corporate tax. In this case why one should open a company in uae and not in the country he lives? If he anyway have to pay the same tax there? That’s why I say desert soon
 
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#15
JackieTsan said:
Means you prove you pay taxes in your country of residency for the company, as corporate tax. In this case why one should open a company in uae and not in the country he lives? If he anyway have to pay the same tax there? That’s why I say desert soon
Click to expand...
Indeed, it doesn't provide many advantages and no benefit from a corporate tax perspective.
Sometimes, it might be beneficial to access certain tax treaties, better regulations, etc.
 
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#16
Don said:
Indeed, it doesn't provide many advantages and no benefit from a corporate tax perspective.
Sometimes, it might be beneficial to access certain tax treaties, better regulations, etc.
Click to expand...
It doesn’t provide ANYTHING positive at all, only more headaches, problems, bureaucracy and tax tax tax. So that’s why I close everything in uae and move somewhere else. Let them enjoy.
 
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#17
JackieTsan said:
It doesn’t provide ANYTHING positive at all, only more headaches, problems, bureaucracy and tax tax tax. So that’s why I close everything in uae and move somewhere else. Let them enjoy.
Click to expand...
Right, UAE is definitely not the same jurisdiction it used to be.
 
#19
turmpy said:
True, what could be an alternative to a UAE company?

You want to move there soon ?
Click to expand...
Depends on your situation.
For some, Bahrain could be perfect.. for others, it's not an option.
For some, UAE is still good.

Saudi Arabia could be great for headquarters.
 
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#20
There is a good news from UAE. Finally, as of today, the Economic Substance Regulations (ESR) have been canceled, effective from 2023.
 
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