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

[calnana]

None - if you have to ask this question.

No space to learn here

 

[Martin Everson]

@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?

No as a foreigner you use your own home law in UAE since 2020 for inheritance purposes.

https://www.pwc.com/m1/en/services/...changes-to-inheritance-succession-regime.html
P.S Now they need to reform the domestic legal system like they did for DIFC. In DIFC companies etc are governed by a different legal framework in line with international norms.

 

[khinkali]

P.S Now they need to reform the domestic legal system like they did for DIFC. In DIFC companies etc are governed by a different legal framework in line with international norms.

Oh yes. English Common Law. When it comes to commerce you can find it in Amsterdam, Brussels, Frankfurt, Paris, New York, Almaty, large parts of Asia.

A big selling point and important for DIFC. Yet from 2000 to 2007, England was moving away from it and nobody paid attention.

 

[karishi]

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.

I lived there for 2-3 months last year to get the residence. It's much better than I thought, I stayed in the Marina Area, you can move by walking, bus to kite beach. Super safe. Lots of expats. What I didn't really like is the bulls**t about luxury things, but if you look well there are more normal places.
I work remotely so I didn't have to commute, which I've been told it's really bad. Nightlife was low in covid times, I saw there were some techno places before covid but I doubt it will be the new Berlin since there are no drugs.
In general it's not that different from a European capital, with 8-9 months of great weather, decent beaches ( it's not Ibiza but not terrible, JBR is the worse it gets better going up ), and the fact that you have to hide vodka or wine to drink alchool on the beaches. In general accomodation is much cheaper than a euro capital, while food is of course more expensive. If you stay 1-2 months you get a good vibe of the city and see if it's your thing. If you are single it's a no brainer, if you have kids different things factor in, because you have to pay for schools which are expensive. So if you plan to have 6 kids you'd better live in welfare states, if you don't want kids like me it's perfect.

 

[zzzzzz]

I lived there for 2-3 months last year to get the residence. It's much better than I thought, I stayed in the Marina Area,

What kind of documents you had as proof of address in UAE, when banks/brokers asked you? Rent agreement (ejari) with utility bills for 12 months? Do banks/brokers ask for this document on account opening only, or periodically (every x years)?

 

[Fred]

Here we go.

---quote start----

No UAE income tax for now, minister says in the wake of corporate tax move​

“It is not at the table at all now,” Dr Thani Al Zeyoudi, the minister of state for foreign trade, said

The UAE will not introduce an income tax for the time being, a senior official said, weeks after the nation unveiled a new company levy.

“It is not at the table at all now,” Dr Thani Al Zeyoudi, the minister of state for foreign trade, told Bloomberg TV in an interview Monday.

---quote end---

Source: https://www.arabianbusiness.com/gcc/uae/no-uae-income-tax-for-now-minister

 

[RealDude]

No UAE income tax for now, minister says in the wake of corporate tax move

So will it come in the future?

 

[gnud]

So will it come in the future?

I think it's quite obvious that once they embark on the route of taxation everything will come just like it is in the West. It's just a question of time, otherwise they'd leave doors open for avoidance making the whole exercise pointless.

 

[Konstanz]

Here we go.

---quote start----

No UAE income tax for now, minister says in the wake of corporate tax move​

“It is not at the table at all now,” Dr Thani Al Zeyoudi, the minister of state for foreign trade, said

The UAE will not introduce an income tax for the time being, a senior official said, weeks after the nation unveiled a new company levy.

“It is not at the table at all now,” Dr Thani Al Zeyoudi, the minister of state for foreign trade, told Bloomberg TV in an interview Monday.

---quote end---

Source: https://www.arabianbusiness.com/gcc/uae/no-uae-income-tax-for-now-minister

For now

 

[Fred]

So will it come in the future?

sorry my glassball 3000 doesn't work today.

 

[FlipnShip]

sorry my glassball 3000 doesn't work today.

Fred I am interested in a consulation, would you be so kind sending me a pm. Cheers.

 

[Dandyline]

What kind of documents you had as proof of address in UAE, when banks/brokers asked you? Rent agreement (ejari) with utility bills for 12 months? Do banks/brokers ask for this document on account opening only, or periodically (every x years)?

You don't need any proof of address, not for agents or banks. Go to Dubai, start company and get your EID in 1-2 weeks, open personal bank account on any bank in 1 hour, build history with the bank for a couple of months (Before approaching for business account), in the meantime you can use Payoneer for your UAE company.

 

[Fred]

You don't need any proof of address, not for agents or banks. Go to Dubai, start company and get your EID in 1-2 weeks, open personal bank account on any bank in 1 hour, build history with the bank for a couple of months (Before approaching for business account), in the meantime you can use Payoneer for your UAE company.

That's bulls**t for business banking in 2022 - no matter how much the bank likes you without proper substance you don't get anything done beside an AED basic account.

 

[Dandyline]

That's bulls**t for business banking in 2022 - no matter how much the bank likes you without proper substance you don't get anything done beside an AED basic account.

Yes, of course you do the basic "substance" which consists of an office address and a good story. Better to bank outside UAE, if possible.

 

[zzzzzz]

You don't need any proof of address, not for agents or banks. Go to Dubai, start company and get your EID in 1-2 weeks, open personal bank account on any bank in 1 hour, build history with the bank for a couple of months (Before approaching for business account), in the meantime you can use Payoneer for your UAE company.

What do you say to a bank when they ask you about your personal address? If you bank abroad it's even more important to have some proof of address in UAE (ejari, utility bill, bank statement with your address...etc.).

 

[Dandyline]

What do you say to a bank when they ask you about your personal address? If you bank abroad it's even more important to have some proof of address in UAE (ejari, utility bill, bank statement with your address...etc.).

Just say some address or your company address.

 

[Fred]

Yes, of course you do the basic "substance" which consists of an office address and a good story. Better to bank outside UAE, if possible.

Good story

We are in 2022 and the registered address of the company takes you nowhere for business account.

The USD and EUR correspondence banks of every local UAE bank wanna see real substance - there are 1-2 banks accepting either a personal flat or office and look how they have issues with USD transfers - have to send 2-3 times a wire transfer till it went through.

Technically - in 2022 - a UAE Bank can only get you AED without any substance - that's like a basic account for business within the UAE.

That's per our experience far far away from what people looking for.

 

[karishi]

What kind of documents you had as proof of address in UAE, when banks/brokers asked you? Rent agreement (ejari) with utility bills for 12 months? Do banks/brokers ask for this document on account opening only, or periodically (every x years)?

My experience is that as a freelancer, and thus probably also as a remote working visa holder, the bank account is opened with Emirates ID and visa: you basically activate UAE Pass in a police station, use the UAE pass to open the account and show the visa / eid when receiving the card. Address was the place where the freelancing permit had the address. This gave to me USD / AED account with CBD. After receiving 60k USD in 4 months the banked called me to do the KYC and I sent them all the documents related to my company (including bank statements ), all the contracts for the money my company received, and an explanation of how why money was moving that way. That worked and I never had issues.
For Interactive brokers I sent the EJARI, which I did for 1 month and then deleted. I suppose you have to send a Proof of Address every time the W8BEN form expires but not 100% sure about that. I always login to Interactive Brokers and to the bank from the VPN if I'm outside of the country.

 

[zzzzzz]

My experience is that as a freelancer, and thus probably also as a remote working visa holder, the bank account is opened with Emirates ID and visa: you basically activate UAE Pass in a police station, use the UAE pass to open the account and show the visa / eid when receiving the card. Address was the place where the freelancing permit had the address. This gave to me USD / AED account with CBD. After receiving 60k USD in 4 months the banked called me to do the KYC and I sent them all the documents related to my company (including bank statements ), all the contracts for the money my company received, and an explanation of how why money was moving that way. That worked and I never had issues.
For Interactive brokers I sent the EJARI, which I did for 1 month and then deleted. I suppose you have to send a Proof of Address every time the W8BEN form expires but not 100% sure about that. I always login to Interactive Brokers and to the bank from the VPN if I'm outside of the country.

W8BEN lasts 3 years at IB and you have one month available for extension. Do you use VPN with UAE ip address? Did IB asked you for any additional documents regarding your address or tax residency (UAE bank statement with your UAE address, UAE tax certificate, document stating that you exited tax residency at home...etc.)?

 

[karishi]

W8BEN lasts 3 years at IB and you have one month available for extension. Do you use VPN with UAE ip address? Did IB asked you for any additional documents regarding your address or tax residency (UAE bank statement with your UAE address, UAE tax certificate, document stating that you exited tax residency at home...etc.)?

IB needs a proof of residence and the EJARI is the best and only proof of residence that matters to them. The EJARI is a long term contract for rent, which you can cancel after 1-3 months. You'll find people who will do this but expect to pay 8 to 10 thousands AED. You can rent the shittiest place for 3 months or a place where you actually live for a couple of months.