Page 93 refer 10.6, of the official UAE Guidance
Yeah, nobody knows how the UAE will apply and enforce effective managent and control rules.
Yeah, then it is just a foreign company with a director/owner that happens to visit the UAE for a while without becoming tax resident. Then it's no tax and no reporting requirements.
looks like 90days if you have residency papers.
At the moment, while there are no specifics clarified, I think it is worth taking care of proper record keeping - decisions, contracts, resolutions, minutes, etc. - all of these should be officially documented outside the UAE. Of course, this raises a new question - what if all this happens remotely via the Internet within the corporate infrastructure located in another country.
Note that US LLC's don't have a board or directors, they only have members (owners) and a manager (who may be, but is not required to be a member). I assume the equivalent to the corporation concept here would be to have a manager who is not resident in the UAE, but this is not the same as the corporation/director setup with respect to control of the entity.
works if you have substance elsewhere, i doubt it will stand up to scrutiny if you are 100% shareholder/ubo and director. If you have other shareholders, a director elsewhere I can see this fixing most issues.
TRC for international taxation only after 180 days and TRC after 90 days for domestic purpose i.e. UAE banks and other institutions.looks like 90days if you have residency papers.
United Arab Emirates - Individual - Residence
Detailed description of individual residence rules in United Arab Emiratestaxsummaries.pwc.com
The said company UBO matters, if its you in the end, then that non-UAE company is deemed to be UAE resident, Again, please go through "Related Party Transactions" very carefully so as to determine whether the agreement that you propose stands the scrutiny of "related party transaction".
Residency only on papers doesn't work as of now, any UAE entity without economic substance gets reported to UBO's current tax resident country. This has started from FY 2022. There is zero escape.
What's your source for this? From page 24 & 25 of UAE Corporate Tax Guidance issued by UAE Federal Tax Authority, the key factor is where decisions are taken, i.e. where the decsion makers, (the directors/board members/delegated General Manager) are when they take the decisions. Where these decision makers are resident also matters somewhat. But where a UBO that isnt a decision maker lives does not seem to be a factor.
The question here was about a non UAE entity. Say a German living in Germany and being a tax resident in Germany and having a German compnay. That German company will not become subject to UAE corp tax just because the German owner spends 30 days in the UAE and gets an Emirates id.
It was a reply to a previous post. Quoting it again for you:
What do you say about the above post? Is it workable as per "Related Party Transaction? Where did I say anything about decisions? Have you read the OP? All my previous answers are based on the OP and not any hypothetical situation which you are bringing up again and again. Please be on topic. I am going to quote the OP - as all my previous answers were based on the issue presented in that OP - quoting it below in case you missed it.
So we juste have to exchange AED with USDT / USDC hold it 12 months to avoid to pay taxes if benefits is higher than 375k AED ?
Yes but at first it’s benefits right so you pay tax and then you invest your benefits ? You can’t deduce benefits by buying stablecoins ??
Companies tax resident elsewhere, but operating in UAE are exempt from economic substance regulations in UAE.
