Tax residency certificate in UAE - 183 days or 183 days in the same fiscal year?

[LiquiditySplash]

The more the better. Ideally AED30K salary but anything above AED10K per month is deemed reasonable.

What is the difference if the salary is more, is it better chance to get the tax certificate?

Is the tax certificate valid for a specific time period, for example 1 year - january to december and then you need to get it again each year?

 

[CaptK]

What is the difference if the salary is more, is it better chance to get the tax certificate?

It has to coincide with your lifestyle.
You can't live a 10K lifestyle when your bank account shows 1K per month.

Is the tax certificate valid for a specific time period, for example 1 year - january to december and then you need to get it again each year?

It's valid indefinintly so long as you renew you company and adhere to residency requirements.

 

[Arkanoid2021]

If I 1) incorporate a company in UAE, 2) move there in order to get the residency, 3) open both personal and corporate accounts - how much should I transfer from the corporate to the personal account on the regular basis? Is there some minimum? And what about taxation in this case? Logically, I will need to pay tax in my home country, thus I am not a resident in the tax-free country.

About not paying taxes in your country. I assume
We have to cut all ties. Not using any services (banking ,insurances, social security etc...)
Your income must come from outside your home country.
I'm in that situation. My income is from my Irish company (do not live there and I'm not from there) but now I'm interested to move to Dubai or SEA (perhaps Thailand on a 5 years Elite visa).
I believe a tax expert can help to pay little tax in your home country or no tax at all.

 

[Verbatim]

AED 10K is about $2700 bare in mind you can recirculate the funds as their is no audit.

Is it really that simple? You can put your salary income from the company back into the business account? Don't funds in the business account need to derive from actual business activity? This is what I don't undersatand for a UAE company , let's say you have 50k to invest as capital in the business account, can you use this capital to pay out a salary? And how can you recapitalize if the funds run out before you have business income from actual business activity?

 

[Verbatim]

It has to coincide with your lifestyle.
You can't live a 10K lifestyle when your bank account shows 1K per month.

It's valid indefinintly so long as you renew you company and adhere to residency requirements.

OK, so if your lifestyle entails spending 7500 AED per month and you salary is 7500 per month, then its OK? Assuming there are tax drivers who earn $800 in Dubai and they can get tax residency certificate as well.

 

[spacely]

About not paying taxes in your country. I assume
We have to cut all ties. Not using any services (banking ,insurances, social security etc...)
Your income must come from outside your home country.
I'm in that situation. My income is from my Irish company (do not live there and I'm not from there) but now I'm interested to move to Dubai or SEA (perhaps Thailand on a 5 years Elite visa).
I believe a tax expert can help to pay little tax in your home country or no tax at all.

Thank you for paying attention to one uncovered aspect I described!

I think yeah, in this case, you either do not pay tax (on your own risk) while getting residency in UAE or pay just some taxes like VAT if you have an operating company there, etc. Hopefully, my country does not require paying corporate tax.

 

[CaptK]

Is it really that simple? You can put your salary income from the company back into the business account? Don't funds in the business account need to derive from actual business activity? This is what I don't undersatand for a UAE company , let's say you have 50k to invest as capital in the business account, can you use this capital to pay out a salary? And how can you recapitalize if the funds run out before you have business income from actual business activity?

USD/EURO/GBP 50K will push you for a year at 3K per month by then you would have received your tax certificate and then you just keep up the residency part.

 

[joffreylol]

Hey @CaptK , thank you so much for all the explanations. I've learned a lot from your knowledge of UAE.

I have a quick question, it might have been already answered somewhere in the forum so apologizes in advance.

It seems that many people struggle or need a lot of time to open business bank account with UAE company so instead they use Currenxie or use Wise with US LLC/UK LLP. I am going to use US LLC while waiting for business bank account. How do I pay a salary from US LLC to my personal account in UAE to be able to get tax certificate. Is it enough to just in transfer message/reference type salary and do the same amount every month? In countries where there is tax you have to use some other system like PAYE in UK if I'm correct there is no such system for FZCO or US LLC?

I hope I explained it correctly, I hope other people might find this questions useful. Thanks for your time!

 

[CaptK]

Hey @CaptK , thank you so much for all the explanations. I've learned a lot from your knowledge of UAE.

I have a quick question, it might have been already answered somewhere in the forum so apologizes in advance.

It seems that many people struggle or need a lot of time to open business bank account with UAE company so instead they use Currenxie or use Wise with US LLC/UK LLP. I am going to use US LLC while waiting for business bank account. How do I pay a salary from US LLC to my personal account in UAE to be able to get tax certificate. Is it enough to just in transfer message/reference type salary and do the same amount every month? In countries where there is tax you have to use some other system like PAYE in UK if I'm correct there is no such system for FZCO or US LLC?

I hope I explained it correctly, I hope other people might find this questions useful. Thanks for your time!

You will just have to state salary on the payment. They are that pedantic in the banks that you make it as simple as possible for them to understand.

 

[joffreylol]

You will just have to state salary on the payment. They are that pedantic in the banks that you make it as simple as possible for them to understand.

Thank you so much