UAE to introduce 9% corporate tax on business profits from June 1, 2023 (FZCO REMAINS 0%)

[karishi]

I would definitely get professional legal advice on this matter when it comes to an authoritarian state like UAE. Don't try to apply logic here.

well, since they are authoritarian, even if you get professional advice, they can do whatever thy want later on

 

[uplana]

well, since they are authoritarian, even if you get professional advice, they can do whatever thy want later on

but then again, you have someone to blame, most of them have an insurance to cover damage.

 

[Martin Everson]

well, since they are authoritarian, even if you get professional advice, they can do whatever thy want later on

Well whose gonna complain out there? There is no free press in UAE, no protests allowed and no slander...sorry criticism of UAE rulers allowed. Add the fact they have a non-independent judiciary legal system far less advanced then Julius Caesars - year 40 BC (Before Christ), thumbs up and thumbs down in the arena system and you get the picture.

 

[karishi]

Well whose gonna complain out there? There is no free press in UAE, no protests allowed and no slander...sorry criticism of UAE rulers allowed. Add the fact they have a non-independent judiciary legal system far less advanced then Julius Caesars - year 40 BC (Before Christ), thumbs up and thumbs down in the arena system and you get the picture.

yeah, I was just saying that these are the risks associated with doing business there, like in any place in the world. If they don't want to give you a tax certificate, they won't give you one. It's also true that they have all interests to play by the rules as long as you play by the rules, as they are basing the economy on people making business in the UAE, so having clear rules is a base for this. If you make a visa, spend 180 days in the country and you don't get a tax certificate, there is a problem, although it's clear to me that the more money you put into the system ( having a freezone company rather than a US LLC with remote working visa, which means 30 times the money you pay to the UAE ) will make things smoother. So in the end it all depends on risk/reward as usual: if you are making 400k a year, the LLC + remote working visa might be a bit stretched and if you do really need a tax certificate, it's safer to have your own company in the freezone and be the manager.

 

[ElBotellon]

Well whose gonna complain out there? There is no free press in UAE, no protests allowed and no slander...sorry criticism of UAE rulers allowed. Add the fact they have a non-independent judiciary legal system far less advanced then Julius Caesars - year 40 BC (Before Christ), thumbs up and thumbs down in the arena system and you get the picture.

Are you referring to the risk of being jailed for debt (something indeed that the Romans did - see Matthew 18:30).

 

[Martin Everson]

Are you referring to the risk of being jailed for debt (something indeed that the Romans did - see Matthew 18:30).

lol. Thats not far off. See the old story below of people running from Dubai and abandoning everything due to facing imprisonment for defaulting on debt.

https://fornoob.com/the-story-behind-dubais-abandoned-supercars/
You can read the below thread fully to see my personal story about living in Dubai...lol

https://www.offshorecorptalk.com/threads/offshore-bank-account-for-gcc-resident.27758/post-115963
P.S Funny I was talking about UAE being attached back in Jan 2020. Seems its all playing out now .

 

[ElBotellon]

lol. Thats not far off. See the old story below of people running from Dubai and abandoning everything due to facing imprisonment for defaulting on debt.

https://fornoob.com/the-story-behind-dubais-abandoned-supercars/
You can read the below thread fully to see my personal story about living in Dubai...lol

https://www.offshorecorptalk.com/threads/offshore-bank-account-for-gcc-resident.27758/post-115963
P.S Funny I was talking about UAE being attached back in Jan 2020. Seems its all playing out now .

having to run away from a country for a simple civil litigation with a landlord is scaring. i believe the UAE may correct such harsh approach to debt, without making discount for fraudsters but avoiding the average joe (the normal guy that has a simple civil issue) to get in trouble. that would reinforce their position as a financial hub. thanks for sharing.

 

[Martin Everson]

having to run away from a country for a simple civil litigation with a landlord is scaring. i believe the UAE may correct such harsh approach to debt, without making discount for fraudsters but avoiding the average joe (the normal guy that has a simple civil issue) to get in trouble. that would reinforce their position as a financial hub. thanks for sharing.

Yes it is scary but 100% the right thing to do when it comes to Dubai. You don't want to end up like this guy as the court system does not function like a fair system.

They have stopped some practices like people automatically jailing people for a bounced cheques so thats good news. They even acquitted some unmarried couples who were jailed for having sex outside marriage. One case is below. So laws are changing but you must be aware of them.

https://gulfnews.com/uae/dubai-couple-charged-with-having-sex-outside-wedlock-acquitted-1.77603118
Anyway back to topic.

 

[uplana]

Brit jailed for 25 years in Dubai speaks of 'shocking' conditions in call to mum | ITV News​

I feel sorry for this guy, let's hope someone can help him

 

[karishi]

I feel sorry for this guy, let's hope someone can help him

I think that the UAE learned some tricks from the US. In italy we say: 'colpirne uno per educarne 100', which is what the US did with the Silk Road founder. They went above and beyond to get him, to send a message. In general, if you want to be resident in the UAE you need to be a good resident, it's not a democracy, you don't want to end up on the wrong side of the equation. And the same applies to the US: you don't want to mess with the US legal system, it's not italy, you really end up in jail there.
Just respect the rules and don't do stupid things.

 

[BlueMist]

I feel sorry for this guy, let's hope someone can help him

Reduced to 10 years already and if it would happen this year, he would not even be jailed due to new drugs law. I guess he will be out this year.

 

[gnud]

How's living in the UAE?

I read articles like this and think pursuing a 0% tax is just not worth it anymore with these kind of risks.

 

[Fred]

How's living in the UAE?

I read articles like this and think pursuing a 0% tax is just not worth it anymore with these kind of risks.

Take a plane and figure it out

 

[gnud]

Take a plane and figure it out

You won't get to know a place by visiting for a week, or even a month. It takes years of experience.

 

[Fred]

You won't get to know a place by visiting for a week, or even a month. It takes years of experience.

Then allow me to say with my years of expeirence - it's pretty cool to live in Dubai as an Western Entrepreneur.

I'm not a car driver, alcohol drinker or something else consumer.

So far never had issues by making my rounds in the gym or at the JBR Beach.

Never used a cheque, never tried the red line of the law.

Just focused on the business and my loved ones - works pretty well here.

 

[zzzzzz]

@Fred how is with inheritance in UAE? Let's say you are a foreigner, non-muslim and own a freezone company or have money in UAE bank and you die. I read it's advised to have a will, otherwise it's distributed by principles of Sharia law?

 

[khinkali]

I feel sorry for this guy, let's hope someone can help him

Four bottles of cannabis related products...Dubai? If this was Thailand people would ask "what do you expect lol"? It's almost as if some countries are held to a different standard for some reason.

He claims they weren't his. If he is in fact an innocent victim then let's hope that the real international drug trafficker is found and convicted, which would most likely get this guy a pardon, even though he is clearly guilty in law.

 

[Fred]

@Fred how is with inheritance in UAE? Let's say you are a foreigner, non-muslim and own a freezone company or have money in UAE bank and you die. I read it's advised to have a will, otherwise it's distributed by principles of Sharia law?

Exactly - a will is the most affordable to achieve organisation of your assets within the UAE after your death.

Of course you have the possibility to setup a holding company that owns your real estate and company shares -> bank accounts -> local UAE holding company is fine -> you can then transfer the shares of the Holding to the Trust.

Did this already several times -> the holding company books it's assets with a Switzerland PB in the DIFC and a Channel Island based Bank on the other side of the Sheikh Zayed Road has the banking for the Trust with an inhouse Trust Provider Company.

Starting from several Millions this scheme makes absolutely sense and is not dependent of your underlaying assets e.g. your business changes and you incorporate somwhere else another company -> you can just move it under this structure.

I think the sharjah law is one of the best things in the UAE because it helped a lot to attract international banks who offer UAE residents to book there assets with them - dont' know another place with even close to so many options - maybe Caymans but that's it.

 

[calnana]

Of course you have the possibility to setup a holding company that owns your real estate and company shares -> bank accounts -> local UAE holding company is fine -> you can then transfer the shares of the Holding to the Trust.

What are the advantages of this vs owning property in your name and having a will?

 

[Fred]

What are the advantages of this vs owning property in your name and having a will?

None - if you have to ask this question.

Just wanted highlight the possibility available in the UAE.

Most people are fine just with a will.