Best tax free setup for Web development business...for Dubai resident

[troubled soul]

But if you have PE in Dubai it doesn't matter where in the world your company is registered, it would still be subject to UAE corp tax (on paper at least, and as current laws look like).

​

6.Who is a Resident Person?​

Companies and other juridical persons that are incorporated or otherwise formed or recognised under the laws of the UAE will automatically be considered a Resident Person for Corporate Tax purposes. This covers juridical persons incorporated in the UAE under either mainland legislation or applicable Free Zone regulations, and would also include juridical persons created by a specific statute (e.g. by a special decree).
Foreign companies and other juridical persons may also be treated as Resident Persons for Corporate Tax purposes where they are effectively managed and controlled in the UAE. This shall be determined with regard to the specific circumstances of the entity and its activities, with a determining factor being where key management and commercial decisions are in substance made.
Natural persons will be subject to Corporate Tax as a “Resident Person” on income from both domestic and foreign sources, but only insofar as such income is derived from a Business or Business Activity conducted by the natural person in the UAE. Any other income earned by a natural person would not be within the scope of Corporate Tax.

https://tax.gov.ae/en/taxes/corpora...dent.persons.and.permanent.establishment.aspxcontracting and confusing information available even on official website..

What will be true

but only insofar as such income is derived from a Business or Business Activity conducted by the natural person in the UAE. Any other income earned by a natural person would not be within the scope of Corporate Tax.

or PE rule

 

[uranium]

But if you have PE in Dubai it doesn't matter where in the world your company is registered, it would still be subject to UAE corp tax (on paper at least, and as current laws look like).

Close company in dubai
Start new company in cayman 0% tax
Live in dubai tax free on personal income

 

[Cloudbanck]

Close company in dubai
Start new company in cayman 0% tax
Live in dubai tax free on personal income

That works if you don't have to manage/run the company from Dubai.* But in that case there are better/ cheaper options than Cayman.

*Or have a nominee director outside the UAE, or have a turnover below 1M AED, or a profit above 375k that can be paid as a salary.

 

[uranium]

That works if you don't have to manage/run the company from Dubai.* But in that case there are better/ cheaper options than Cayman.

*Or have a nominee director outside the UAE, or have a turnover below 1M AED, or a profit above 375k that can be paid as a salary.

Do you have to pay taxes in dubai if you running offshore company in cayman?

 

[Cloudbanck]

Do you have to pay taxes in dubai if you running offshore company in cayman?

Yes, as per the current corp tax law in the UAE, a foreign company ("juridical person") effectively managed and controlled from the UAE is subject to UAE corp tax. See the video about this that was shared in the thread about UAE corp tax UAE clarification of Freezone Qualifying Income

 

[Gediminas]

As New corporate Tax introduce.....but still There is no personal tax...so want to get benefit of this..
I want to register my Web development business...with tax free status
What will be the solution for this while being resident of Dubai ?
Thinking of USA LLC...as It is tax free and cheap.
but biggest problem is PE rule....what is the best solution for my situation ?

Thanks

Hey,

The main issue with US LLC is that you refer to a tax-transparent entity that does not have a taxable presence in the USA.

It is more like a tax-transparent partnership, but not as a real company. I would prefer a limited liability company with a zero tax regime, which can distribute dividends.

Overall speaking about PE rule in UAE, I don’t believe authorities will have the resources and experience to catch every expat who manages some foreign business from UAE.

If you live all year in Dubai then, probably the risk is higher.

 

[Au999]

on paper it may read like Dubai has suddenly decided to become a new Germany and tax every penny anyone has who stays there longer than 90 days - but Dubai isn't exactly filled with an army of highly skilled crack commando navy seal tax inspectors...

unless this is their new plan for creating full Emirati employment :0