What structure to wrap UAE residency (and reduce US taxes)

[jazzybell]

If you don't have any US presence and work is performed outside the US I don't it's the case.

When you work with a US client, the client will ask you to file a W8 form and once you put their UAE, this means the US client should withhold 30% of the payment amount to you, that's the US client's obligation.
of course, there is a case when the client doesn't hold it and it could be a case for them to pay 30% on top of your contract.
in general, if they have good accounting, they will withhold for sure.
I'm talking about B2B contracts.

if you sell products it's a different story but if you provide self-service, I can't see any other options.

 

[Marzio]

“All persons ('withholding agents') making US-source fixed, determinable, annual, or periodical (FDAP) payments to foreign persons generally must report and withhold 30% of the gross US-source FDAP payments, such as dividends, interest, royalties, etc”

https://taxsummaries.pwc.com/united-states/corporate/withholding-taxes
Why the US client should ask to file the W8 form?

 

[jazzybell]

Why the US client should ask to file the W8 form?

Because if you operate as US entity and would like to put your payment to expenses then, service provider have to file W8 - for non-residents or W9 for US residents.
So, as UAE resident you will file W8

 

[Marzio]

I didn’t know that without W8 payments couldn’t be accounted as expenses. I guess then what you are saying is correct.