United Arab Emirates - AMCFZ Company

[kriyazen]

I live in a 3rd world country with high taxes. I work online for clients in EU, using eResidency and a Company in Estonia. To reduce taxes, I'm thinking about moving my tax residency to UAE. Maybe I'm just naive, I did some research on AMCFZ and it sounds too good to be true. Anyone with experience?

The idea is to incorporate, this should give me a residence visa and the ability to open a bank account. I don't really want to live there though.

 

[speedster]

Note that South Africa has some pretty rigid CFC rules you'll need to get around.

 

[kriyazen]

Note that South Africa has some pretty rigid CFC rules you'll need to get around.

it's complicated. SARS is pretty well managed when it comes to money collection. They might not hit me next year but in 3 years. The other issue, there is no DTA between Estonia and South Africa and I don't want to be taxed twice. It's legit money, my client insisted on EU company, Estonia seemed like the best option at the time.... things are changing though.

 

[speedster]

How are you planning to get past the CFC rules if you don't plan on living there?

 

[kriyazen]

How are you planning to get past the CFC rules if you don't plan on living there?

I'm actually looking for someone, who has experience. so,... Do you have any experience or you just looking for new friends?

but to answer your question, the idea is: I don't think SARS has the capacity to check where I live. (I have 2 passports/different countries and I travel a lot. SA is not Switzerland or Germany, where the finanzamt investigators sit in front of your house, in an unmarked car to monitor the number of the days you spend at home.

 

[speedster]

As long as you are aware of the risk you are taking, remembering that there are worldwide reporting agreements. If sars cast their eye upon you the full profit of the company will be taxed in your personal capacity and at your marginal rate. If you're comfortable with that risk then by all means go ahead.

 

[JohnSeed]

Whydon't you setup a real company with office, staff and utility say in Ireland, Cyprus or Malta - if you have a budget above 10K it is well possible to do that and avoid alot of troubles later on.

 

[kriyazen]

As long as you are aware of the risk you are taking, remembering that there are worldwide reporting agreements. If sars cast their eye upon you the full profit of the company will be taxed in your personal capacity and at your marginal rate. If you're comfortable with that risk then by all means go ahead.

I am more interested in implication from UAE site if any e. g. being unable to open a bank account without proof of residence, canceling my visa if I don't spend enough time in UAE. ... you get the point. Maybe there are better alternatives, I don't know about. Taxes have always been a touchy subject. I refuse to pay 28% corporate tax a country where I get absolutely nothing in return. In a country where I can't even hold foreign currency and have minimal tax deductions. On the other hand, paying 20% taxes in a country I have never even been to (Estonia), is also a bit against my belives.

Frankly, if s**t hit the fan, I would take that other passport of mine and f*ck off SA faster than SARS could even look. . I still think SARS don't have the capacity to check. I don't hold any assets in SA, nothing to freeze either.

 

[kriyazen]

Whydon't you setup a real company with office, staff and utility say in Ireland, Cyprus or Malta - if you have a budget above 10K it is well possible to do that and avoid alot of troubles later on.

Thank you for suggesting. I was thinking about it, but I do travel to Dubai a lot, it's 8 hours from South Africa. In AMCFZ you also have an office (from a shared desk to a real office). I work from home, I can work from anywhere The issue is, it makes no sense for me to move to UAE permanently. Mrs has a great job in SA, life is much cheaper here too. Also, in the EU it's getting tougher every year, think about VAT, "place of business" etc. just a thought.

 

[FRANCO]

Hi,
What is the offer of AMCFZ that sounds too good to be true ? I have cousins in Dubai, I can ask them especially that I am interested too.

 

[kriyazen]

Hi,
What is the offer of AMCFZ that sounds too good to be true ? I have cousins in Dubai, I can ask them especially that I am interested too.

0% income tax, if you register a company you get tax residency in Dubai too. You can move to UAE if you wish to do so. Also, it's the closest "decent" country to where I live.

 

[Nesso]

0% income tax, if you register a company you get tax residency in Dubai too. You can move to UAE if you wish to do so. Also, it's the closest "decent" country to where I live.

Did you think about the business bank account in UAE? It's not easy to get one opened as many members outlined here.

 

[speedster]

0% income tax, if you register a company you get tax residency in Dubai too. You can move to UAE if you wish to do so. Also, it's the closest "decent" country to where I live.

I wasn't aware one could buy tax residency. How does this work?

 

[kriyazen]

I wasn't aware one could buy tax residency. How does this work?

You incorporate in UAE and get 3 years visa. (Has to be free zone or onshore company) Not a cheap excisize thought, you are looking at $6k+ in total. Of course, there is another $2k per year fee to keep the company going.

 

[BlueMist]

You incorporate in UAE and get 3 years visa. (Has to be free zone or onshore company) Not a cheap excisize thought, you are looking at $6k+ in total. Of course, there is another $2k per year fee to keep the company going.

I think the costs including incorporation, medical, visa etc are higher, based on my experience. Is the trade licence renewal that cheap at AMCFZ? I pay roughly $4800 at CCFZ and that's only because I have the "old" renewal rates. The newer ones are even more expensive.

Also I would not necessarily opt for the cheapest freezone, I don't think all of them provide the same service level.

 

[speedster]

You incorporate in UAE and get 3 years visa. (Has to be free zone or onshore company) Not a cheap excisize thought, you are looking at $6k+ in total. Of course, there is another $2k per year fee to keep the company going.

And you're sure that will qualify as tax residency?

 

[kriyazen]

And you're sure that will qualify as tax residency?

I'm sure I was born and I'm also sure I will die. Everything in-between is calculated risk. According to my research, it should work. Confirmed by several independent parties. Obvioselly there is the 180 or 183 day presence requirement if you really want to go deep into it as you probably would, judging by your comments.

 

[FRANCO]

I don't think that getting 3 years residency papers is automatic when you create your company in a free zone, is it ?

 

[BlueMist]

And you're sure that will qualify as tax residency?

From UAE banking and government perspective, you would be considered as a resident of the UAE. So naturally banks would not have to report to your home country. However you would never get a tax residency certificate if you are not living permanently in the UAE.

I don't think that getting 3 years residency papers is automatic when you create your company in a free zone, is it ?

You are eligible to apply for residence visa, which is subject to approval by authorities. You may as well get rejected.

 

[JohnLocke]

From UAE banking and government perspective, you would be considered as a resident of the UAE. So naturally banks would not have to report to your home country. However you would never get a tax residency certificate if you are not living permanently in the UAE.



You are eligible to apply for residence visa, which is subject to approval by authorities. You may as well get rejected.

Is that true? It sounds easy, maybe to easy to me if someone want to avoid reporting they simply setup a company in the UAE wait 3 years and then no one will go and report them!