Taxation on transaction with foreign companies from uae freezone.

[ahmedarslanleo]

If I'm buying a product from Kenya and selling in to a U.S.A company and I'm located in a designated freezone (Jafza) will income generated from this transaction be taxed in uae?

 

[SCHLOSSFINANZ]

of course.

 

[ahmedarslanleo]

of course.

can you please elaborate

 

[lagloriacubana]

can you please elaborate

You raised an invoice -> client paid it -> company gets income -> you make profit above 350,000 AED -> you pay 9% tax on what you make as profit above the taxable threshold.

 

[JustAnotherNomad]

If I'm buying a product from Kenya and selling in to a U.S.A company and I'm located in a designated freezone (Jafza) will income generated from this transaction be taxed in uae?

Not necessarily. If it is a "qualifying activity", there still is no tax for this.
I remember there were some exemptions related to import/export businesses, but I don't know if it would qualify if you ship directly from Kenya to the US.
Have you spoken to the free zone?

 

[SCHLOSSFINANZ]

lol
https://taxsummaries.pwc.com/united-arab-emirates/corporate/tax-credits-and-incentives

ALL requirements must be fullfilled almost impossible

 

[JustAnotherNomad]

ALL requirements must be fullfilled almost impossible

You probably didn't even read it.
The activity has to fit the "qualifying activities" and it cannot be B2C.

But probably it doesn't fit into a qualifying activity. Unless it is "Trading of qualifying commodities.", but I guess it isn't.

 

[SCHLOSSFINANZ]

of course it fits not into that because the guy has for sure NO SUBSTANCE in the Freezone

 

[JustAnotherNomad]

How do you know?