FREELANCE PERMITS in Dubai,UAE license cost details and provider

[Sammy11]

No it's all digital. I think you scan the passport or there is facial recognition at the airport

yup at e-gates at Dubai airport, you keep your passport in your pocket, you just look at the camera and you walk to the security check..
pretty insane if you ask me

 

[karishi]

yup at e-gates at Dubai airport, you keep your passport in your pocket, you just look at the camera and you walk to the security check..
pretty insane if you ask me

well it's a clear warning that you are under constant surveillance and that they have the tech to recognize you. When you talk to USA people living there the first thing they always mention about Dubai is how safe they feel, it might be creepy, but it's an important part of the package.

 

[Rprox]

I must admit that I have been quiet, and for this reason is that I am doing a little research. According to twofour54's step one of their process I am supposed to have a letter of intent (which I don't have, from a company or media zone) or a business plan as part of my application process. Even though I know what type of work I will carry out I haven't found my skill on their freelance activities list / categories unless it falls under one of the software design / engineering categories. This is the only concern I have is that if I follow the application process, pay-up the fees and get absolutely no opportunities presented to me, or unable to find any. This is my main objective.

 

[karishi]

I must admit that I have been quiet, and for this reason is that I am doing a little research. According to twofour54's step one of their process I am supposed to have a letter of intent (which I don't have, from a company or media zone) or a business plan as part of my application process. Even though I know what type of work I will carry out I haven't found my skill on their freelance activities list / categories unless it falls under one of the software design / engineering categories. This is the only concern I have is that if I follow the application process, pay-up the fees and get absolutely no opportunities presented to me, or unable to find any. This is my main objective.

If you are a software engineer you will find work, I mean, you don't have to work for a Dubai company, you can work remote, it's basically impossible to be non employed as a software developer in 2022. The freelance permit allows you to work for a Dubai company, if you want, but that doesn't mean that you need to work for them. I've received tons of offers from dubai companies, for working from the office in Dubai, because companies need local substance, which means workers in dubai.
Think of the freelance permit as a way to get residency in the UAE, the fee you pay to be able to live in the UAE, but don't ever think that you will get work through the freelancer visa, you will have to find that out for yourself

 

[JosephLL]

Just a sec, you are given right to work (be employed) in Dubai with the freelance visa?! Is this really true?

 

[karishi]

Just a sec, you are given right to work (be employed) in Dubai with the freelance visa?! Is this really true?

yes, as a freelancer. That's the whole point of a freelancer visa. Remote working visa doesn't give you right to work in Dubai, I mean as a freelancer for a dubai company.

 

[maxmoney]

If you can work as an freelancer in Dubai, pay no taxes and live there, that may be fine if you don't need to work for a Dubai company?

 

[karishi]

If you can work as an freelancer in Dubai, pay no taxes and live there, that may be fine if you don't need to work for a Dubai company?

Freelancers will be subject to corporate taxes from next year, but only for the part that you earn in Dubai, if you have a company outside Dubai and distribute dividends those dividends should not be taxable. Or at least that's how I understand things so far.

 

[zzzzzz]

Freelancers will be subject to corporate taxes from next year, but only for the part that you earn in Dubai, if you have a company outside Dubai and distribute dividends those dividends should not be taxable. Or at least that's how I understand things so far.

If you get freelance visa (for residency purposes) and trade with your personal account at IB, is this going to be taxed with 0% or 9%?

 

[cuno]

To gain a tax certificate you have to be physically present in the UAE for 183 days in a year.

what after you got your certificate and you the year after have been there less, will you lose it?

 

[CaptK]

No, keep everything in order with your company and continue to pay yourself a salary. You will be fine.

 

[karishi]

If you get freelance visa (for residency purposes) and trade with your personal account at IB, is this going to be taxed with 0% or 9%?

no taxes on personal income, Freelance permit is more similar to a company. So what you make under the freelance permit is taxed ( after 100k USD ), while everything you gain personally is not taxed. So if you have a company outside the UAE and distribute dividends, that's not taxed.

 

[Marzio]

So if you have a company outside the UAE and distribute dividends, that's not taxed.

So a US LLC and US bank account + freelancer VISA in Dubai = 0% tax. Why would anyone go through the hassle of incorporating a Dubai freezone company, bank account opening deal with (possibly) accounting when all you need is an offshore company?

 

[karishi]

So a US LLC and US bank account + freelancer VISA in Dubai = 0% tax. Why would anyone go through the hassle of incorporating a Dubai freezone company, bank account opening deal with (possibly) accounting when all you need is an offshore company?

You don't need the freelancer visa for that setup, you need the remote working visa which is even cheaper. @Fred reports that you might have issues when requesting a tax certificate though, I guess that if you do 100k, it's ok, if you do 500k a year, it's a little bit too much and you should have your freezone company in dubai

 

[Mercury]

So a US LLC and US bank account + freelancer VISA in Dubai = 0% tax. Why would anyone go through the hassle of incorporating a Dubai freezone company, bank account opening deal with (possibly) accounting when all you need is an offshore company?

Similarly, granted that one gets UAE residency via freelancer VISA, why would anyone generating income (capital gains, dividends, interests) through personal investment/trading (stocks, cryptos) go through the hassle of incorporating and maintaining any kind of company anywhere?

 

[zzzzzz]

Similarly, granted that one gets UAE residency via freelancer VISA, why would anyone generating income (capital gains, dividends, interests) through personal investment/trading (stocks, cryptos) go through the hassle of incorporating and maintaining any kind of company anywhere?

Privacy, status, more serious when dealing with high amounts, asset protection, estate planning.

 

[Marzio]

@Fred reports that you might have issues when requesting a tax certificate though

Can't undestand the link between tax certicate and the amount your earn as a freelancer. AFAIK the only thing that matters from the tax certificate standpoint are the days you spend in UAE. What's the problem if you spend 183 days and ear 100K vs 500k?

 

[wheelspin]

The introduction of corporate tax coming in mid 2023 bothers me.

Let's assume somebody wants to move Dubai just to stay there using a freelance visa. He's keeping all assets out of UAE somewhere (Switzerland, Singapore, ....). Everything is legit. No business running.

In Dubai, I suppose you can get a private bank account (maybe better if I drop some large amount of cash?) and just transfer monthly some cash from a personal bank account (in the same name) to cover daily expenses. When would the corporate tax kick in? How can a bank distinguish between personal gains and business revenue?

What happens if you incorporate a company just for residency and do not run any business in a free zone with no activity / accounting rules? Without a bank account for the company, there's no business activity, so there's no corporate tax. Personal bank account shouldn't be a problem because you have a visa through own company, correct?

 

[troubled soul]

The introduction of corporate tax coming in mid 2023 bothers me.

Let's assume somebody wants to move Dubai just to stay there using a freelance visa. He's keeping all assets out of UAE somewhere (Switzerland, Singapore, ....). Everything is legit. No business running.

In Dubai, I suppose you can get a private bank account (maybe better if I drop some large amount of cash?) and just transfer monthly some cash from a personal bank account (in the same name) to cover daily expenses. When would the corporate tax kick in? How can a bank distinguish between personal gains and business revenue?

What happens if you incorporate a company just for residency and do not run any business in a free zone with no activity / accounting rules? Without a bank account for the company, there's no business activity, so there's no corporate tax. Personal bank account shouldn't be a problem because you have a visa through own company, correct?

Even freezone company are tax free for next 40-50 years. Just do not do business in GCC. You are good.

Tax for only for mainland company , when entities serve gcc clients.

There will be no personal tax in future that's for sure.

 

[CaptK]

There is no PIT, so by that measure, what you would do is draw a large salary into your bank account to bring you under the $100K tax bracket.