Does the new UAE tax apply for RAKICC offshore companies?

[Checkmelater]

Even for 15-20M AED / month business ? I think bank could be more compliant, if a lot people Switch with RAKICC company

 

[Addler]

The only issue I found with offshore companies is getting a bank account.

Where you able to get a local one?

I am also looking for banking options for an RAK ICC company.

 

[ecool]

Banking in UAE for non residents (companies or individuals) is extremely difficult. Hardly you will find any bank that under normal circumstances will onboard you.

If you have a real use case of why you need an offshore company and you cannot work with onshore company and you are managing a lot of money, try to find a smaller bank where you can more easily talk with managers or branch directors to expose your case tell them the amount of money or business you will bring to them and you might be lucky, as smaller banks have targets to meet and you can help them achieve them. But remember that this is case by case and you have to be very lucky by meeting the right person at the right moment.

Other than that, go the traditional onshore way and you will have bank easier (still can be hard sometimes but easier than offshore)

 

[OJ333]

Banking in UAE for non residents (companies or individuals) is extremely difficult. Hardly you will find any bank that under normal circumstances will onboard you.

If you have a real use case of why you need an offshore company and you cannot work with onshore company and you are managing a lot of money, try to find a smaller bank where you can more easily talk with managers or branch directors to expose your case tell them the amount of money or business you will bring to them and you might be lucky, as smaller banks have targets to meet and you can help them achieve them. But remember that this is case by case and you have to be very lucky by meeting the right person at the right moment.

Other than that, go the traditional onshore way and you will have bank easier (still can be hard sometimes but easier than offshore)

This is case by case. You can get some EMI if they work for you.

 

[mgs999999999]

Any updates on this issue?

 

[JonnyStekkino]

Seems like they will be all taxed, except qualifying activities which are pretty useless are very few and does not fit the majority of people doing business in dubai.

Currently in IFZA but trying to find a new alternative... maybe Hong Kong or a Bahrain

 

[Don]

Seems like they will be all taxed, except qualifying activities which are pretty useless are very few and does not fit the majority of people doing business in dubai.

Currently in IFZA but trying to find a new alternative... maybe Hong Kong or a Bahrain

what about? Issuance of Tax Certificates (Tax residency and commercial activi

Quoting: Offshore companies are not eligible to obtain Tax residency certificate as they are not considered to be established in the UAE.

 

[OJ333]

Any updates on this issue?

No taxation for RAK ICC offshore companies. At least for now

 

[Don]

No taxation for RAK ICC offshore companies. At least for now

It makes sense since I believe you can also not get TRC and access to DTT-s

 

[Checkmelater]

If there is no tax it’s good think we still have opportunity in this country, but main problem is business banking ..

 

[Clank]

If there is no tax it’s good think we still have opportunity in this country, but main problem is business banking ..

I think there are better jurisdictions in which you can achieve 0% corporate tax than UAE for a similar price.

UAE was good because of the free zones with 0% tax that gave you access to local banking and residency.

 

[Checkmelater]

I think there are better jurisdictions in which you can achieve 0% corporate tax than UAE for a similar price.

UAE was good because of the free zones with 0% tax that gave you access to local banking and residency.

If there is no CIT there is income tax, if there is no income tax there is poor banking system if there is 0% with banking systeme it’s in a middle of island and you can do nothing

 

[doe88490]

No taxation for RAK ICC offshore companies. At least for now

I am guessing you are basing this on the legal opinion of the senior tax advisor you mentioned earlier. Did you also talk to him about the effective management of the RAK ICC? From everything I understand about the new corporate tax laws, the RAK ICC cannot be managed by a UAE resident and remain tax-free, as that would trigger a permanent establishment and, thus, corporate tax. Or am I missing something, @OJ333?

Where I do follow: RAK ICC managed by a non-resident might remain tax-free, although still not 100% confirmed by the authorities.

 

[OJ333]

I am not a UAE resident. Never been there. So this is what I am basing it on.

 

[Don]

No taxation for RAK ICC offshore companies. At least for now

Official guidance doesn't look like this, but certain types of income might be exempt.

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.

Who is subject to Corporate Tax?
Corporate Tax applies to the following “Taxable Persons”:

• UAE companies and other juridical persons that are incorporated or effectively managed and controlled in the UAE;

What income is exempt?
The Corporate Tax Law also exempts certain types of income from Corporate Tax. This means that a Taxable Persons will not be subject to Corporate Tax on such income and cannot claim a deduction for any related expenditure. Taxable Persons who earn exempt income will remain subject to Corporate Tax on their Taxable Income.
The main purpose of certain income being exempt from Corporate Tax is to prevent double taxation on certain types of income. Specifically, dividends and capital gains earned from domestic and foreign shareholdings will generally be exempt from Corporate Tax. Furthermore, a Resident Person can elect, subject to certain conditions, to not take into account income from a foreign Permanent Establishment for UAE Corporate Tax purposes.

 

[DSoz]

so what's the current agreed upon understanding of this situation, taxed or tax free?

 

[Don]

so what's the current agreed upon understanding of this situation, taxed or tax free?

Depending on the activities the income might be tax free, but regardless CIT registration is mandatory for all UAE companies.

 

[JackieTsan]

I directly contact RAKICC on their website and I get this answer :

« Unfortunately we may not comment on this matter yet as discussions are ongoing on high level with FTA .

We will officially inform all the agents once we finalize discussion .

Please feel free to seek Tax Advice meanwhile .
Thanks & Regards, »

maybe you can post it again, and kindly share the link so we can all start asking what is happening?

 

[Don]

maybe you can post it again, and kindly share the link so we can all start asking what is happening?

Freezones have no authority in regard to tax matters. No point to contact them. They must obey the laws like everyone else. In that sense they are like all other companies.

 

[Checkmelater]

I’ve been looking into the same issue for a while, and I completely understand the confusion. There’s a lot of conflicting information out there about whether the new UAE corporate tax applies to RAKICC offshore companies.

From what I’ve gathered, RAKICC is considered separate from other UAE free zones when it comes to tax regulations. The official RAK ICC website still states that these offshore companies are not subject to UAE corporate tax, and a few consultants like Creative Zone seem to confirm that. However, it does seem like the situation is still a bit unclear, as some tax consultants and agents are hesitant to give a concrete answer

Yes but you still UAE resident so if you live there you will have to pay CIT, maybe interesting for people outside the country but in this case just open an US LLC ..