Our valued sponsor

Dubai is dead, any alternative to the free zone 9% tax?

UAE has been removed from FATF grey list. France, Germany, UK and the US were behind this. So, now in a month or two back to being old Dubai again. Euro clearances will be smooth.
Removed from FATF but not removed from EU High AML tax list. Until it is not fully removed from this list it will be still problematic.
https://finance.ec.europa.eu/financ...ntent-anti-money-laundering-and-countering_en
Also I don't think removal will help a lot. UAE will still remain high risk country in view of banks and PSP
 
Are all of you guys moving away from Dubai? how many would you estimate from the total number of companies incorporated in Dubai will close or move their companies to other offshore jurisdictions?

Do you know a source for where we could find such figures or would such sources be manipulated as much in the UAE is ?
 
  • Like
Reactions: jafo
Removed from FATF but not removed from EU High AML tax list. Until it is not fully removed from this list it will be still problematic.
https://finance.ec.europa.eu/financ...ntent-anti-money-laundering-and-countering_en
Also I don't think removal will help a lot. UAE will still remain high risk country in view of banks and PSP
It's on its way, trust me, predicted about the FATF, euro clearances are to be getting smooth, EU is on its way to remove UAE from money laundering list.
 
  • Like
Reactions: uranium
Are all of you guys moving away from Dubai? how many would you estimate from the total number of companies incorporated in Dubai will close or move their companies to other offshore jurisdictions?

Do you know a source for where we could find such figures or would such sources be manipulated as much in the UAE is ?
I suspect a lot are taking advantage of the 3-year “small business relief” exemption while assessing where to go next.

I believe the max exodus will be late 2026. Not only due to the expiration of SBR, but also because of the high likelihood of an oversupply of properties thus driving down the inflated property market.
 
  • Like
Reactions: jafo
I suspect a lot are taking advantage of the 3-year “small business relief” exemption while assessing where to go next.

I believe the max exodus will be late 2026. Not only due to the expiration of SBR, but also because of the high likelihood of an oversupply of properties thus driving down the inflated property market.
I think the UAE authorities are assessing the small business relief, and if they think too many firms will move out at expiry, they might very well extend it.
 
Imagine getting a nominee Emirati on board as a director or shareholder. I can tell you things will go way smoother.
The government actually even pays you to hire Emiratis. If you pay them a low salary, you get some kind of grant. Since there are no payroll taxes, it's like picking up money from the ground.

The first question is, are you a tax resident in UAE?

The second question: is this US LLC effectively managed and controlled in the UAE and forms a permanent establishment in the UAE?

A foreign person or non-resident entity is considered to have a PE in UAE -
  • if it owns at least one permanent or fixed location in the country for operating its business.
  • if a resident person holds the authority to operate a business on behalf of a foreign individual who is a non-resident.
  • if it owns any other partnerships or connections that are mentioned in other Cabinet Decisions, if not in Federal Decree-Law no. 47.

Under the corporate tax regime, foreign companies having a PE in the UAE will be subject to the corporate tax rate of 9% on annual taxable income exceeding AED 375,000 attributable to UAE business operations and activities such as service provision, goods production or sale, property rentals, etc. These non-resident entities are required to register for corporate tax and file tax returns within 120 days of the end of the financial year.

https://tax.gov.ae/en/services/corporate.tax.registration.aspx

Please specify under what conditions does the UAE government pay for the employment of Emiratis in the Private sector? I only know about the emiratisation fee (compulsory) after 20 and 45 employees in our staff. And about the heavy fines for non-compliance.
 
I suspect a lot are taking advantage of the 3-year “small business relief” exemption while assessing where to go next.

I believe the max exodus will be late 2026. Not only due to the expiration of SBR, but also because of the high likelihood of an oversupply of properties thus driving down the inflated property market.

I would like to inquire about your experience with registering for SBR. Do you have any information that can be shared with us on the correct procedure for doing so?
 
No this has to happen now and someone told me need to have audit from 2023 is this true ?
Do you have any information on why this can/should be done before 2025?
I may be mistaken, but so far my view is the same as in this article.
Small Business relief is an optional relief and has to be chosen as an option when submitting the tax return (due by the end of 9 months from the end of the tax period). However, no immediate action is required during the Corporate Tax registration or during the tax period.
 
I paid and consulted 3 separate advisors yesterday and today.
Two of them told me need asap to register the company for tax and audit 2023 as they will ask for it to apply for tax relief (small business ..) in 2024. You have to pay tax for 2024 according to the law, why you mention 2025?
 
I paid and consulted 3 separate advisors yesterday and today.
Two of them told me need asap to register the company for tax and audit 2023 as they will ask for it to apply for tax relief (small business ..) in 2024. You have to pay tax for 2024 according to the law, why you mention 2025?
It depends on when your fiscal year starts. If it starts on June 1, then until February 28, 2025. If from January 1, then until September 30, 2025.
ct.webp


But this year, you need to register for CT (the deadline for registration depends on the date of the company's license).
reg.webp

An audit is not mandatory for all companies.
In any case, I'm describing my understanding of the situation and I could be wrong. Perhaps your fiscal year starts on June 1, then everything can be (but not must be) done in 2024, including the SBR. In that case, your consultants might be right about the need to hurry.
 
  • Like
Reactions: JonnyStekkino
It depends on when your fiscal year starts. If it starts on June 1, then until February 28, 2025. If from January 1, then until September 30, 2025.
View attachment 6622

But this year, you need to register for CT (the deadline for registration depends on the date of the company's license).
View attachment 6623
An audit is not mandatory for all companies.
In any case, I'm describing my understanding of the situation and I could be wrong. Perhaps your fiscal year starts on June 1, then everything can be (but not must be) done in 2024, including the SBR. In that case, your consultants might be right about the need to hurry.
Thank you so much for all this great info! My year starts Jan 1st if I remember correct.

Thank you