Can anybody confirm that this paragraph is for E-commerce and Dropshipping ?

[troubled soul]

Recently UAE introduce the New tax...Some activities are still tax free...which they named Qualifying Income...which will be tax free....

In law they mention something like this .....

Can anybody can confirm that this paragraph is for E-commerce and Dropshipping ?

(1) Distribution of goods or materials outside of the UAE – Designated Free Zone Person (Distributor Co) buys goods from a manufacturer in Country A, and sells these goods to a retailer in Country B. Distributor Co earns a profit / margin on the goods sold to the retailer in Country B. The goods are shipped directly from the Manufacturer in Country A to the Retailer in Country B.
(2) Distribution of goods or materials in the UAE – TheDesignated Free Zone Person (Distributor Co) buys goods from Country A, andsells these goods to a retailer in the UAE. Distributor Co earns a profit /margin on the goods sold to the retailer. The goods are shipped by theManufacturer in Country A to Distributor Co in the Designated Zone from wherethey are imported into the UAE.

If this all paragraphs pointing to e-commerce of drop shipping businesses ?

 

[Au999]

Reads as b2b not b2c. So more like a wholesaler than an ecomm drop shipper

 

[troubled soul]

China Factory -> Amazon
Amazon is not end user.....is just a distributor or market place

 

[Au999]

Yes but you don't 'sell' your goods to amazon

 

[troubled soul]

True.

 

[JohnnyDoe]

Is it really worth to remain obsessed with untrustworthy beduins? I abandoned my UAE FZ company a couple of years ago and I don’t regret it.

 

[troubled soul]

Is it really worth to remain obsessed with untrustworthy beduins? I abandoned my UAE FZ company a couple of years ago and I don’t regret it.

Thanks for reply....but for Non EU passport holder ...there are not many total tax free solution except Caribbean company........What will you suggest for Non EU passport holder ?
Which place you use after , abandoning UAE fz company ?

 

[JohnnyDoe]

Thanks for reply....but for Non EU passport holder ...

Usually you should consider your tax residence, not your citizenship.

there are not many total tax free solution except Caribbean company........What will you suggest for Non EU passport holder ?

It depends on your personal situation, there are no cookie cutter solutions.

Which place you use after , abandoning UAE fz company ?

I am happy with my setup where I pay a decent amount of taxes (10-15%) without too many headaches using companies in various countries.

 

[troubled soul]

I am happy with my setup where I pay a decent amount of taxes (10-15%) without too many headaches using companies in various countries.

which is your favorite place in this category ?

 

[JohnnyDoe]

which is your favorite place in this category ?

US LLC, Serbia, Dominican Republic FZ