UAE: FZCO, VAT, CIT, SBR, TRC - Help?

[bio]

A few months ago I moved to the UAE:
I opened a FZCO w/ IFZA.
I received my EID and UAE driver's license.
I opened a personal and business bank account.
I rented an apartment and received an Ejari/DEWA.
I opened a personal IBKR account.
I've lived in the UAE now for 90+ days.

In that time, a lot has changed with the upcoming 9% corporate tax rate.
I hadn't really been paying attention as I've been working 100+ hours per week on building my business, but now I am realizing I need to catch up soon as I'm almost at the 375k AED threshold for VAT.
I do not know what I need to do next. Any advice is highly appreciated.

1) Do I need to register for VAT? I provide digital consultancy services to a company in the USA. I have no customers in the UAE and no physical goods.

2) My estimated earnings are less than 3M AED per year for the foreseeable future. Should I switch to a mainland company and apply for small business relief? If so, how? Do I need to wait until 2024? I am afraid of missing a deadline and getting stuck with 9% CIT.

3) A tax residency certificate in the UAE seems easy enough for me to get, but I assume there is no rush to obtain one unless I plan to move back to my country of birth? Or is it better to establish a TRC as early as possible?

4) If I travel back to my country of birth for two months per year on holiday and stay in an Airbnb, is there anything to worry about?

Thank you!

 

[Barbara Roessle]

Does that mean that you do not need a yearly rental as long as you:

1) have a company in the UAE who employed you and
2) you stay 90 days or more even in hotel or Airbnb doing short term?

I mean, under the 2 conditions above + valid VISA, do you get the tax residence certificate?

Best wishes,

as per official website - https://tax.gov.ae/en/services/issuance.of.tax.certificates.aspx:

Tax Residency Certificates (TRCs) to enable applicants to take advantage of Double Tax Avoidance Agreements (DTAA) on income signed by the UAE.
TAX Residency Certificate for Treaty purposes:

1. Required documents is applicant is a natural person:

• Passport
• Valid Residence Permit
• Emirates ID
• A certified copy of residential lease agreement
• Source of income/salary certificate
• A bank statement issued by a local bank covering 6 months within the financial year related to the request
• Entry and exit report from Federal Authority of Identity and Citizenship or a local competent Government entity.
• Proof of permanent place of residence:
  
• Certified lease agreement or electricity bill under the name of the applicant.
• Title deed in case of private property.
  
  Source of income:
• For self-employed individuals, provide a trade license and share certificate.
• If the applicant owns a property and uses the earnings as a source of income, provide a lease agreement if the property is leased.
• If the applicant is retired, provide a letter addressed to the FTA stating that they are using their own savings, bonds, or investments. Additionally, provide an official supporting document.
• If the applicant is sponsored by their husband or wife, provide a salary certificate or proof of income.
• Marriage certificate.
  

 

[mgs999999999]

as per official website - https://tax.gov.ae/en/services/issuance.of.tax.certificates.aspx:

Tax Residency Certificates (TRCs) to enable applicants to take advantage of Double Tax Avoidance Agreements (DTAA) on income signed by the UAE.
TAX Residency Certificate for Treaty purposes:

1. Required documents is applicant is a natural person:

• Passport
• Valid Residence Permit
• Emirates ID
• A certified copy of residential lease agreement
• Source of income/salary certificate
• A bank statement issued by a local bank covering 6 months within the financial year related to the request
• Entry and exit report from Federal Authority of Identity and Citizenship or a local competent Government entity.
• Proof of permanent place of residence:
• Certified lease agreement or electricity bill under the name of the applicant.
• Title deed in case of private property.
  
  Source of income:
• For self-employed individuals, provide a trade license and share certificate.
• If the applicant owns a property and uses the earnings as a source of income, provide a lease agreement if the property is leased.
• If the applicant is retired, provide a letter addressed to the FTA stating that they are using their own savings, bonds, or investments. Additionally, provide an official supporting document.
• If the applicant is sponsored by their husband or wife, provide a salary certificate or proof of income.
• Marriage certificate.

Thank you for your response.

I have the following question:

Is there any requeriment for the duration of the lease? It says lease agreement but it does not specify any duration of the lease agreement. Can it be for only one month or do we need 1 year lease agreement?
I am asking that because in the article 4 of decision cabinet 85, it says “any of those” which, overall may be understood as that a yearly lease agreement is not necessary.

Thanks and best wishes

 

[Barbara Roessle]

Thank you for your response.

I have the following question:

Is there any requeriment for the duration of the lease? It says lease agreement but it does not specify any duration of the lease agreement. Can it be for only one month or do we need 1 year lease agreement?
I am asking that because in the article 4 of decision cabinet 85, it says “any of those” which, overall may be understood as that a yearly lease agreement is not necessary.

Thanks and best wishes

Correct, yearly is not necessary but the minimum is not known. I guess there is no minimum as one can submit an Ejari thats only valid another month.

 

[ZipZop]

You have no idea how the situation is on the ground.
A golden rule I learned in UAE, always ask same question to different people to get accurate info.

this is (as UAE resident) what I do as well, but I don't get the same result as you...I just receive multiple different answers.. (even from lawyers and accounting firms) , so at the end it's worst

 

[JackAlabama]

this is (as UAE resident) what I do as well, but I don't get the same result as you...I just receive multiple different answers.. (even from lawyers and accounting firms) , so at the end it's worst

yup my issue too, If you ask 5 people the same thing you get 8 different answers, even if its supposedly reputated ones (like lawyers etc).

 

[JohnLocke]

There is so much posted about the tax regulations in the UAE already that it's obvious no one really know how to comply to satisfaction of the government.

Here is another thread which confirms what you just said above
https://www.offshorecorptalk.com/threads/possible-workaround-for-new-uae-corporate-tax.42217