Our valued sponsor
There is a rumor that Dubai has another additional taxation plan
- Thread starter bikar
- Start date
Not really. Malta has 5% and it's a more stable business environment.
UAE has ever-changing rules and no rule of law. You could wake up tomorrow only to learn the rules have changed, or they could even backtrack on things that seemed guaranteed in the past, so now you suddenly have to pay a huge fine.
UAE made sense at 0% when there was no risk... Now, not so much.
Unless you really want to live there full time maybe - but even then, you could probably just set up your company offshore with minimal substance and live tax-free off dividends in Dubai.
Dubai still makes sense with generally very low taxes: up to 9% CIT and 0% PIT and 0% CGT. It's still a pretty good deal.
If and once PIT is introduced it will change things for a lot of people. They won't introduce big PIT it will be small in the start but they might increase it down the line. They are good at "boiling the frog" tactics.
As for Malta, 5% CIT is not that straight forward since (AFAIK) you have to pay the full tax amount and then file for a refund and then wait for the GOV to refund you. This creates a burden for the company as it locks money/capital until you it's refunded. From what I have heard this can take months. Malta makes sense if you want to live there but have big companies abroad so this is mostly for HNI. They also are looking to change that 5% CIT so that might change in the near future.
If and once PIT is introduced it will change things for a lot of people. They won't introduce big PIT it will be small in the start but they might increase it down the line. They are good at "boiling the frog" tactics.
As for Malta, 5% CIT is not that straight forward since (AFAIK) you have to pay the full tax amount and then file for a refund and then wait for the GOV to refund you. This creates a burden for the company as it locks money/capital until you it's refunded. From what I have heard this can take months. Malta makes sense if you want to live there but have big companies abroad so this is mostly for HNI. They also are looking to change that 5% CIT so that might change in the near future.
with holding companies in malta you can avoid waiting for refund and pay 5% directly
you will 2 need companies (one is holding)
you will 2 need companies (one is holding)
I wouldn't say stable as there has been talk about this changing for a while. Hopefully they stick to any changes only affecting multinationals and allow changes to be phased in.
https://timesofmalta.com/article/race-implement-new-corporate-tax-regime-kicks-off.1086535
I don't think people have much to worry about with UAE from the competitiveness angle even if they introduce PIT.
Where's the next UAE? Is Vanatau a serious option in anyone's experience for a holding company? Has anyone successfully setup there?
Getting around UAE PIT, take directors loans and don't pay back or pay back annually as per thresholds at 0% interest?
Getting around UAE PIT, take directors loans and don't pay back or pay back annually as per thresholds at 0% interest?
Last edited:
I meant stable as in, they don't change the rules over night. It's predictable. Lawyers should give you correct information.
In the UAE, everything is still very new and rules can change any time, as you have pointed out before.
True, for some Malta is fine for some Cyprus and UAE is better. All depends on the person asking.
Latest Threads
-
Isn’t Cyprus planning to increase CIT not "by 2,5%", but actually rather by 20%?
- Started by OffshoreDude
- Replies: 8
-
Best Tax-Efficient Setup for a Malta Resident Earning Salary + Freelance Income
- Started by moonyman
- Replies: 1
-
Bank account or EMI that lets a freelancer / sole proprietor use a business name (trade name) instead of personal name?
- Started by OffshoreDude
- Replies: 25
-
Non-EMI Personal Bank Account for Mainland Europe
- Started by hdloader11
- Replies: 8
-
