Dubai cash deposit of $1.000,000 in two different bank accounts

[ZipZop]

yes I agree you should always have 2-3 accounts open, especially in UAE.

regarding the compliance, I experienced this morning a request for 7 transactions I did 5 months ago. as I am always prepared for that, they were pleasantly surprise that I answer less than one hour after I received the request.

the more professional you look the better it is. Also always being super polite and respectful, giving compliment, etc.. it always helps to get more flexibility (i.e. if you need a bit more time).

 

[HundHond]

soon or later comaplince will come prepare your answer , open another bank account be ready

Wh

When you're doing such things, always have couple accounts open. When they ask you for proof of funds, you take a withdrawal slip from another bank and send them.
Also never just deposit, sometimes also withdraw some amounts and take it to other bank and deposit there. Keep all the slips.

Why didn't you pay the whole thing in Crypto?
You would save your self a lot of hustle and dealing with cash.

What is the worst thing you can imagine is going to happen? I already have 3 other bank accounts and opened at mashreq another one just three weeks ago. What do you think is going to happen in the worst case as I closed the account at ENBD? Let’s say they do SAR report, 99% of times nothing happens, when can the central bank freeze the funds? With 100% confirmation of illegal activity right? If I can proof them where the money comes from, even with internet business without licence in uae (Which is not legal) they can give me a fine most likely rather than suspend the account right? What do you think is most likely going to happen, is it possible that nothing will happen? Thank you

 

[csp dubai]

dubai has 11 counts on money laundering, if you generate money and you not pay the 9%tax , is tax evasion taht is now a crime, 1 count you not paid vat count 2, fail reporting a business count 3 , than cherry cake money laundering.
you risk to have a travel ban , your asset confiscate , jail time and deportation , of course this peurely theoretic , but i would not risk doing anything illegal in dubai , they will be very efficient in charging you.
move your fund in another place trust me, and do not show your face in dubai for a while it will be igenic

 

[jafo]

Why didn't you pay the whole thing in Crypto?
You would save your self a lot of hustle and dealing with cash.

This is the ONLY correct answer!

 

[0xDEADBEEF]

I understand your frustration, especially given the challenges of due process in the Middle East. Fortunately, investigations of this nature are still relatively new to Dubai, and your chances seem promising, especially if your previous tax residency isn't actively seeking information about your whereabouts. Think of law enforcement as another business, they have a backlog and must decide if your case is worth pursuing.

Hopefully, during your time in Dubai, you've made connections that can guide you. As Sols mentioned, being connected with the right people is the only thing that matters. With proper onboarding using processes designed for high-net-worth individuals and VIP treatment from your account manager, you might find interventions happening at the bank's end and your account manager would have proactively informed you of this for a 'reward' . While you may not have direct knowledge, someone in your network might be able to assist through their connections and get your affairs sorted, look for the guy that has sold the same 200k watch multiple times.

For added peace of mind, you could return to crypto. It is far more beneficial than letting your money gather dust with 5 different money creating firms or potentially having your assets frozen. Hell, you can even rent a companion there with crypto so there really is no reason to continue taking this risk. Then you could take a look at exiting the UAE.

 

[JosephLL]

This is the ONLY correct answer!

You cannot pay in crypto. AED is the unit of account (fiat like anywhere else, this applues to every jurisdiction). The amount on contract can only be expressed in fiat. Therefore money conversion == taxable event happens always. And its on you even if some 3rd party actually performs the convertion in the background.

 

[JimBeam]

You cannot pay in crypto. AED is the unit of account (fiat like anywhere else, this applues to every jurisdiction). The amount on contract can only be expressed in fiat. Therefore money conversion == taxable event happens always. And its on you even if some 3rd party actually performs the convertion in the background.

I've seen investors taking Cryptro advertising that on their websites.
https://www.damacproperties.com/en/blog/buy-dubai-property-with-bitcoin-and-ethereumhttps://famproperties.com/advice/can-i-buy-property-in-dubai-with-cryptocurrencySo, I think it's possible.

Wh

What is the worst thing you can imagine is going to happen? I already have 3 other bank accounts and opened at mashreq another one just three weeks ago. What do you think is going to happen in the worst case as I closed the account at ENBD? Let’s say they do SAR report, 99% of times nothing happens, when can the central bank freeze the funds? With 100% confirmation of illegal activity right? If I can proof them where the money comes from, even with internet business without licence in uae (Which is not legal) they can give me a fine most likely rather than suspend the account right? What do you think is most likely going to happen, is it possible that nothing will happen? Thank you

Hopefully nothing.
Do you have funds frozen in ENBD bank? If yes - how much?
You have not carried out any business. You have traded your own funds/crypto and got lucky. (At least that's what I would tell them).

dubai has 11 counts on money laundering, if you generate money and you not pay the 9%tax , is tax evasion taht is now a crime, 1 count you not paid vat count 2, fail reporting a business count 3 , than cherry cake money laundering.
you risk to have a travel ban , your asset confiscate , jail time and deportation , of course this peurely theoretic , but i would not risk doing anything illegal in dubai , they will be very efficient in charging you.
move your fund in another place trust me, and do not show your face in dubai for a while it will be igenic

1. He can say he earned that money before 9% CIT was introduced - so no crime (or he traded while being in another country - don't know the specifics of ho long have OP been in Dubai, on what visa etc).
2. It was not his business - more like a hobby
3. That could happen but I highly doubt it

But if you really end up in trouble you'll get a travel ban until the court is done and after that probably jail time and/or deportation.
Again, I find this highly unlikely as you have brought your capital into UAE and are buying a property there. By doing so they would be sending a bad message.

So, my guess is, that most probably nothing will happen.

 

[PinkCat]

relax dude, you haven't done anything outrageus, and this amount is not even considered significant in Dubai. If they were strongly suspecting you they would have frozen your acc first. Probably just some front desk staff did what the system requires at certain threshold to check a checkbox and your answers (in pdf lol) are forgotten long time ago.

 

[JosephLL]

I've seen investors taking Cryptro advertising that on their websites.
https://www.damacproperties.com/en/blog/buy-dubai-property-with-bitcoin-and-ethereumhttps://famproperties.com/advice/can-i-buy-property-in-dubai-with-cryptocurrencySo, I think it's possible.


Hopefully nothing.
Do you have funds frozen in ENBD bank? If yes - how much?
You have not carried out any business. You have traded your own funds/crypto and got lucky. (At least that's what I would tell them).


1. He can say he earned that money before 9% CIT was introduced - so no crime (or he traded while being in another country - don't know the specifics of ho long have OP been in Dubai, on what visa etc).
2. It was not his business - more like a hobby
3. That could happen but I highly doubt it

But if you really end up in trouble you'll get a travel ban until the court is done and after that probably jail time and/or deportation.
Again, I find this highly unlikely as you have brought your capital into UAE and are buying a property there. By doing so they would be sending a bad message.

So, my guess is, that most probably nothing will happen.

Conversion is implicit but unavoidable. And all legal concequences that go with it.

 

[jafo]

You cannot pay in crypto. AED is the unit of account (fiat like anywhere else, this applues to every jurisdiction). The amount on contract can only be expressed in fiat. Therefore money conversion == taxable event happens always. And its on you even if some 3rd party actually performs the convertion in the background.

*I* cannot pay in crypto.

There! I fixed it for you!

I pay my TAXES in crypto, chief!

Source: Tax payments with cryptocurrencies.

Humor me... I owe you CHF 10M (your cut); I can't convert that to FIAT because NO bank will or flatly refuse. I tell you: " @JosephLL , right now, at this very instant, I can cancel my debt with you by sending you CHF 10M in USDT or USDC or Bitcoin or Eth...or whatever." What are you going to do? Say "No! I insist on FIAT. Or I'll wait until you can get FIAT." ????????
What if I suddenly have a heart attack? Or get struck by a car??? Or even arrested??? What then? How are you going to collect? Do you actually think anyone else besides me has access to any of my crypto funds? I am on exchanges, but I use their credit cards/debit cards to make purchases like groceries, meds, etc., etc., via Google Pay and Apple Pay. No exchange has five digits mine! None!

Even #TSLA (Tesla) accepts cryptocurrency.
Source: https://www.tesla.com/support/dogec...sla accept,making your purchase with Dogecoin.

So many other places/businesses accept crypto, it's NOT even funny anymore.... Who Accepts Bitcoin in 2024? List of 20+ Major Companies

Cheers!

 

[csp dubai]

1. He can say he earned that money before 9% CIT was introduced - so no crime (or he traded while being in another country - don't know the specifics of ho long have OP been in Dubai, on what visa etc).
2. It was not his business - more like a hobby
3. That could happen but I highly doubt it

But if you really end up in trouble you'll get a travel ban until the court is done and after that probably jail time and/or deportation.
Again, I find this highly unlikely as you have brought your capital into UAE and are buying a property there. By doing so they would be sending a bad message.

So, my guess is, that most probably nothing will happen.

completly agree nothing will happed , my point is dubai is not as it used to be, i not see too much advantages being there any more

 

[JackAlabama]

There! I fixed it for you!

I pay my TAXES in crypto, chief!
View attachment 6539

Source: Tax payments with cryptocurrencies.

Humor me... I owe you CHF 10M (your cut); I can't convert that to FIAT because NO bank will or flatly refuse. I tell you: " @JosephLL , right now, at this very instant, I can cancel my debt with you by sending you CHF 10M in USDT or USDC or Bitcoin or Eth...or whatever." What are you going to do? Say "No! I insist on FIAT. Or I'll wait until you can get FIAT." ????????
What if I suddenly have a heart attack? Or get struck by a car??? Or even arrested??? What then? How are you going to collect? Do you actually think anyone else besides me has access to any of my crypto funds? I am on exchanges, but I use their credit cards/debit cards to make purchases like groceries, meds, etc., etc., via Google Pay and Apple Pay. No exchange has five digits mine! None!

Even #TSLA (Tesla) accepts cryptocurrency.
Source: https://www.tesla.com/support/dogecoin#:~:text=What cryptocurrency does Tesla accept,making your purchase with Dogecoin.

So many other places/businesses accept crypto, it's NOT even funny anymore.... Who Accepts Bitcoin in 2024? List of 20+ Major Companies

Cheers!

its the future, which is already visible (at least partially).

 

[PinkCat]

1. He can say he earned that money before 9% CIT was introduced - so no crime (or he traded while being in another country - don't know the specifics of ho long have OP been in Dubai, on what visa etc).
2. It was not his business - more like a hobby
3. That could happen but I highly doubt it

But if you really end up in trouble you'll get a travel ban until the court is done and after that probably jail time and/or deportation.
Again, I find this highly unlikely as you have brought your capital into UAE and are buying a property there. By doing so they would be sending a bad message.

So, my guess is, that most probably nothing will happen.

completly agree nothing will happed , my point is dubai is not as it used to be, i not see too much advantages being there any more

Why are we involving the 9% CIT? OP is not a company and persons still have 0% tax on their income.

 

[csp dubai]

in dubai there is not such a thing like professions , you must have a licence if you produce any income and is taxed at 9% no way out

 

[0xDEADBEEF]

Why are we involving the 9% CIT? OP is not a company and persons still have 0% tax on their income.

OP also deposited cash into his FZCO, so the business could have taxable income depending on when the deposits were made (before or after 01/06/2023).

 

[HundHond]

OP also deposited cash into his FZCO, so the business could have taxable income depending on when the deposits were made (before or after 01/06/2023).

Do I need to pay 9% corporate tax on income that was generated from 01/06/2023? As far as I heard it works for financial year only. So there is no tax before 2024! If let’s say you start your financial year in 2024 you need to pay from 2024 and not before. The law was implemented from 01/06/2023 for corporate tax registration. People could have registered on 01/06/2023 and need to pay taxes on 01/06/2024, but if you was clever enough or like 95% of UAE that registered their corporate tax after 2024, you don’t need to pay taxes on 2023 income.

Correct me if Iam wrong

 

[0xDEADBEEF]

My bad, you're right. In that case 2023 should be tax free.

 

[JackAlabama]

Why are we involving the 9% CIT? OP is not a company and persons still have 0% tax on their income.

that very issue has been addressed by the gov and is quite clear imo.

unincorporated businesses as well as business like activities are on the hook too.

Do I need to pay 9% corporate tax on income that was generated from 01/06/2023? As far as I heard it works for financial year only. So there is no tax before 2024! If let’s say you start your financial year in 2024 you need to pay from 2024 and not before. The law was implemented from 01/06/2023 for corporate tax registration. People could have registered on 01/06/2023 and need to pay taxes on 01/06/2024, but if you was clever enough or like 95% of UAE that registered their corporate tax after 2024, you don’t need to pay taxes on 2023 income.

Correct me if Iam wrong

from 1.1.24 onwards according to your financial year which most likely is from 1.1. to 31.12.

 

[PinkCat]

in dubai there is not such a thing like professions , you must have a licence if you produce any income and is taxed at 9% no way out

OP has financial gain from investment in crypto, is that considered a profession and taxable? I would be extremely surprised if so and this will be the first time I hear it, so are you 100% sure? Sources?

OP also deposited cash into his FZCO, so the business could have taxable income depending on when the deposits were made (before or after 01/06/2023).

Sorry but deposing cash into your own company is not income, it is funding of your own company so it can start business.lol

 

[Forester]

Sorry but deposing cash into your own company is not income, it is funding of your own company so it can start business.lol

In some jurisdictions, it is a taxable income for the company. (In practice, you are usually funding a company when it has negative bilance; and no profit => no income tax. But some specific situation may happen.)