Best management location for US LLC

[daniels27]

I’ve tried reading through the thread to figure out what the actual solution to your question is. You live in Dubai, have a US LLC, and therefore pay the lowest possible tax namely, only income tax, which is 0% in Dubai as it stands now.

Isn’t that the solution?

Yes. But what about me? I do not live in Dubai and have active income. That's why we are still discussing. Some people care more about me than others

Also, I guess most people do not like to live in Dubai for more than 4 months of the year.

 

[JustAnotherNomad]

It works for him because he said he has an IP holding and investing company so it's 100% passive income.

The lawyer said it has to be linked to an asset outside of Malta. So even if it's passive income, I would expect that it somehow has to be located outside of Malta. Not sure how you would do this.
Maybe you have a SaaS and it's hosted outside of Malta and you sell the license to use the software. I guess something like that can work.
But if you provide services (or resell services provided by people outside of Malta), the income would be considered as arising in Malta.

 

[JustAnotherNomad]

Yes. But what about me? I do not live in Dubai and have active income. That's why we are still discussing. Some people care more about me than others

As mentioned before, the UAE would likely subject the US LLC income as UAE-sourced and subject to corporate income tax.
Even influencers (acting under their own name) have to pay corporate income tax. So even if it was indeed treated as personal income, this doesn't mean it wouldn't be subject to corporate tax.
And the UAE has made it very clear that entities that are managed from the UAE are subject to corporate tax.
This just isn't enforced at the moment, they are going after the big companies with actual offices etc. first.
But maybe this will change in 10 years and they will then demand that you pay up for the previous 10 years. Or maybe nothing will happen, who knows.
But it's a big risk, and if SHTF, they can place you under a travel ban or put you in jail. This isn't Thailand. Everything is still new, there is no case law for this.

However, the risk would be drastically lowered if you could point to a manager in another country - which is what I was asking about originally.

Also, I guess most people do not like to live in Dubai for more than 4 months of the year.

That would be plenty enough to be considered tax resident.

 

[Marzio]

Not sure how you would do this.

Lets wait for a reply from @A1988

 

[JustAnotherNomad]

I’ve tried reading through the thread to figure out what the actual solution to your question is. You live in Dubai, have a US LLC, and therefore pay the lowest possible tax namely, only income tax, which is 0% in Dubai as it stands now.

Isn’t that the solution?

No, that is not correct, as explained once again above.
Personal income tax is only paid on salaries in the UAE. If you manage an offshore company from Dubai, it becomes subject to UAE corporate tax.
"But how can a person pay corporate tax?"
Don't ask me, those are the rules!

https://kwsme.com/blog/corporate-tax-for-uae-freelancers/
https://www.freelanceinformer.com/news/new-uae-corporate-tax-to-impact-freelancers/
https://gulfnews.com/business/corpo...n-businesses-must-prepare-for-1.1703480392292