My personal nightmare as a Small Business Owner here in Dubai is the VAT process. I don;t mind paying the 5% - it is after all input/output. But the complexity of the process means you will inevitably get a fine and that will compound. And their communication is zero.

@harismuzaffar1151

Жыл бұрын

Ksa is more scarier.

@haimduRAGE

Жыл бұрын

yup they lack comprehension

@abdulazizalghamdi8464

Жыл бұрын

It’s our way.. better for all sides

@chocomojo9552

Жыл бұрын

Communication with government mean more burocracy and TAXES. And you don't like that. So just pay dude.

@rubenk1414

10 ай бұрын

In any case better then NZ

Man, you really upped your game by speaking that intro etc clean, clear and in a good pace. In past videos it was at times way too fast, but now it's perfect to absorb in one hit! Great improvement

@jaykern

Жыл бұрын

What about Panama and Ecuador? You'll involve that more in your videos too?

Qatar needs to setup up as a competitor in the region. It will help MENA greatly. UAE has to try and please its expats, Emiratis and international bodies and doing so will become increasingly difficult. The only solution is competition. A lack of competition is why countries like our home of Canada, are not as pressed to try and attract anyone anymore.

@OffshoreCitizen

Жыл бұрын

How do you think Qatar compares to the UAE lifestyle wise?

@hellophoenix

Жыл бұрын

@@OffshoreCitizen Dubai social laws are much more liberal than Qatar. Now , age of consent is 18 , unmarried couples can legally live together , marriage , divorce , and inheritance laws based on your country of origin and even Muslims now can get licenses to buy alcohol. I’m expecting more changes in the laws coming in the next few years.

@RockstahRolln

Жыл бұрын

Canada is done and overly saturated, to attract anyone there is pointless. The country is now in the process of following the WEF's protocol which is going to change the entire country.

This was inevitable. The USA started out good, more rules, more taxes, more regulation all started with a little bit of each, and now look at it. Dubai will end up the same way although to what extend or how long this may take may be a different story.

@kagi95

8 ай бұрын

Jeez it took the US many decades to come down from its peak... Meanwhile the UAE is speedrunning it! We barely had the chance to enjoy the 0% taxes in UAE until this rule change.

Currently in Dubai after 4 years absence (thanks Trudeau for being such an autocratic toolbag). I must say, the traffic is much more hectic and the people generally less considerate, not to mention prices really moving up relative to Canada. I would say that it has become inherently less desirable a place to live. There are basically really 3 reasons to live in UAE: weather, taxes, and things to do. If tax reasons are less, then I'm not positive that the weather and attractions (less appealing once you've done them a bunch) will be enough to make UAE the place to be. Still leaning to a move here, but now might be considering other options.

@oa6551

Жыл бұрын

Will the FZCO be taxed do you know?

@thatswhatshesaidbro

Жыл бұрын

What’s healthcare like ? That’s the price for say platinum Cigna coverage and how does it compare to canada ? I hear canada is good but just slow is uae the same thing ?

@OffshoreCitizen

Жыл бұрын

Healthcare depends for what. You can get service very quickly and typically not so expensive. Specific examples: 1. Go to emergency in Canada to see a doctor what's a typical wait? 4 hours or so? In Dubai there are a dozen services that will send a doctor to your home within 30 minutes so that's far better. 2. My brother recently needed a particular type of cone CT scan. In Canada the wait is 6 months and costs $300 after healthcare pays its part. In Dubai you can walk in the same day and pay 500 AED On the other hand in Winnipeg there's like 250 chiropractors. There's 83 in all of UAE. So in general there's a fair bit less option for alternative health. There are some good ones but also some that are not so good. In Canada the patient experience is pretty weak. In Dubai it tends to be quite strong. But there's less options available as a general rule.

@OffshoreCitizen

Жыл бұрын

Re FZCO being taxed. They've said it won't if not operating in UAE...it's very unclear at this stage what constitutes operating in UAE. So the answer is we'll see the details in the next few months though I'd expect it will remain fairly easy to remain untaxed of you live there. It increases the cost of maintaining a company though.

@OffshoreCitizen

Жыл бұрын

Re costs for what you get I find Dubai is pretty similar to Vancouver or Toronto, lower of you're paying for high service ie maids etc. Convenience is much higher in Dubai vs any Canadian city. More of a service culture in UAE vs Canada but service staff tend to be less resourceful. Comments on traffic are interesting I'm wondering where you're staying? Sounds like the Marina or JBR areas, which tend to be pretty bad. Most of the city I find far easier to get around by car vs places like Toronto and Vancouver. Cities like Edmonton, Calgary and Winnipeg are easier and lower cost but with other trade offs on weather and lack of conveniences. I find the trajectory of UAE is much better, much more business friendly environment, and of course zero tax so if you're an entrepreneur not much of a comparison. If you're getting a job much more questionable.

Living in Dubai cost you at least 70k a year and you have to pay for the company setup + maintenance which cost you probably another 20-30k a year(office rent at least 15k a year), so thats 100k expenses a year. If you don't make at least 500k USD in profits, I don't think its worth to go here, especially the new taxes and the difficult banking situation is an additional pain in the ass and makes it less appealing to newbies moving to Dubai.

@mattball7074

Жыл бұрын

Exactly. Start adding it up and Cayman absolutely wins this fight all day

@kooldude123

Жыл бұрын

those prices are really incorrect. My yearly registration for my Sharjah FZE company is around 15k AED and thats going through Virtuzone. If I went direct to free zone it would be even less.

@TheDesertsweeper

Жыл бұрын

@@kooldude123 It depends what kind of license - you are talking FZ while Tradefy is probably talking about an onshore-license - they are way more expensive

@OffshoreCitizen

Жыл бұрын

Cayman is super expensive and doesn't have nearly the conveniences of UAE. I'd say company maintenance is likely 10k/yr for most people. Cost of living what's important isn't the cost but the differential between the cost there and wherever else you'd choose. In similarly developed cities the cost of living is about the same as Dubai in most cases so the real difference is cost of company maintenance and tax. If you're making $100k you're probably not saving much. Beyond that maybe, depends what your alternatives are. Generally tax adds up much more quickly than cost of living. But you've also got to consider your values and what type of lifestyle you like. Dubai has insane quality of life but with certain trade offs if you prefer smaller places, nature, cooler climates etc. So depends a lot what you value.

@Tradefy

Жыл бұрын

@@kooldude123 I am talking about proper company substance, which requires a real office and you probably have to hire a worker, except you are in Dubai the whole year.

I think UAE is worse when it comes to taxes, because we have a lot of expensive fees and licenses. Which I think of as prepaid taxes unlike normal taxes which are postpaid.

@OffshoreCitizen

Жыл бұрын

Depends how much money you make. If your income is high UAE is far far better but yes the fees should be considered a form of tax

First time coming across your video and you provided very thoughtful and informative content.

@OffshoreCitizen

Жыл бұрын

Happy to hear you liked the video. Anything you'd like to see next?

Paying yourself Salary or any appropriation of profits are not going to be tax admissible expense.

Thanks for the heads up on Dubai, Michael! BTW, who did you hire to edit your videos? They did an awesome job.

@OffshoreCitizen

Жыл бұрын

Thank you! We have a new full time video editor. He is fantastic :)

Interesting info as always

@OffshoreCitizen

Жыл бұрын

How do you find the news? Is it something you expected?

I can't get my head around being involved in Dubai since it's located at the nexus of a politically unstable region, with Iran, Iraq, Saudi Arabia, Israel, the 7th Fleet, the US and Russia.....

Does adsense income is exempted from VAT in UAE? is there a limit? Thanks

Thanks for a great video

@OffshoreCitizen

10 ай бұрын

Always a pleasure! Anything you'd like to see next?

@boundless_lord

10 ай бұрын

@@OffshoreCitizen An update on your day traders tax video with the latest best practices taking into consideration the current UAE tax changes would be great thanks 👍

If freezone starts taxing what's the whole point of freezones ???

@shaned7545

Жыл бұрын

Soon they will realize they are doing a big mistake.

@OffshoreCitizen

Жыл бұрын

If you look at other countries where there are free zones they are tax exempt based on certain activities. It's possible UAE goes that direction

Interested to hear more about Thailand

@OffshoreCitizen

Жыл бұрын

Stay tuned! Have you checked some of our older videos on Thailand? For example this one kzread.info/dash/bejne/ha2Ou6uTfLnMlps.html

@b4bmm

Жыл бұрын

@@OffshoreCitizenyes I’ve watched them all. Fairly sure I commented on it, still waiting for a reply 😂

Great video as usual.

@OffshoreCitizen

Жыл бұрын

Thank you! How do you feel about the news?

@fritzmetzger22

Жыл бұрын

@@OffshoreCitizen not a good trend. Getting worse every month...

I feel Dubai is getting to the point it is working for the government without the need for 0 taxes... Sadly, this is what happens when things get popular, I'm still gonna move to Dubai in some months if I can, but looking for some other places to operate just in case...

@OffshoreCitizen

Жыл бұрын

Feel free to reach out in case you need assistance

@MakeTawba.

Жыл бұрын

I can help with finding an office or real estate commercial space

GMCT will come, but it will not stay…

What are the new substance requirements? Also, as long as you have an freezone company earning income outside UAE, there is still no tax liability at this point, right?

@chloewaifu

Жыл бұрын

i hope???

Soon every member of OECD will implement a minimum tax of 15% 💁

The new UAE rules have come and the part on qualifying income for free zones does not make it easy for freelance businesses to pay zero tax.

Hi Michael, is the video about Thailand already online?

I would love a video about Gibraltar!

@OffshoreCitizen

Жыл бұрын

Can do

Monaco Zwitserland etc

What a surprise a monarchy can change the rules of the game as they please. Are people really this naïve?

Doesn't this happen to all countries that become affluent? They kind of have to close the gap on immigration and tax incentives

@OffshoreCitizen

Жыл бұрын

How do you see this playing out?

Little confused. Why would Dubai tax a foreign company even if youre tax resident there? Im looking to do this from Panama same thing. Doesn't Dubai have a territorial tax set up as well? Can you clarify the difference between management control rules vs. Territorial tax rules

@OffshoreCitizen

Жыл бұрын

Management and control is about corporate tax residency. We've created some videos in the past you can find about taxation basis and corporate tax residency discussing some of the differences. Treating foreign companies as locally tax resident is to remove the incentive to use a foreign rather than local company

The aah sound effect did make me laugh. Do you see this slowing down the amount of entrepreneurs and companies setting up there?

@OffshoreCitizen

Жыл бұрын

Depends how strict they end up being with it in practice

but if you receive a salary from a foreign company will freezone companies be taxed if it makes no income at all and is purely for the visa?

@OffshoreCitizen

Жыл бұрын

No you only get taxed on profit

Hahaha now you trapped in Dubai holding the bags. LOL

@OffshoreCitizen

Жыл бұрын

Very happy to be in Dubai, nowhere I'd rather be living these days

Managerial remuneration will be subject to transfer pricing rules per OECD + even foreign company controlled by a natural person in the UAE will be liable to UAE tax!!!!

@OffshoreCitizen

Жыл бұрын

What is your source for this information?

Wait can you please clarify? You’re saying it’s for ALL uae companies??? I thought freezones are tax free as long as you do business outside of the UAE?

@OffshoreCitizen

Жыл бұрын

Not all. We'll update with further details as soon as more information is published

Will companies based in UAE also have the obbligation to publish their balances?

@OffshoreCitizen

Жыл бұрын

They need to report them, don't believe they'll be public but we'll see

Hi Michael what country are you from?

The elephant in the room is that for those based in Dubai you can't comment anything negative (on videos like this) or you'll find yourself spending longer than you'd like to in the local prison. Flip flopping of rules we all love especially when that flip flopping has seen massive inflated rental prices and rules that were set up to protect tenants from artificial rent hikes are being ignored for independent valuations which are supposed to apply to vacant properties only but of course this is not a negative comment UAE.. UAE number one UAE... UAE

@OffshoreCitizen

Жыл бұрын

There's plenty of videos of people criticizing Dubai This being said all places have pros and cons so you need to take them in their entirety and taken in the entirety there is no place that offers what UAE does. The question got any individual is how does that offering compare to what they are looking for?

@permabear6025

Жыл бұрын

Exactly Diplomat, in Dubai there’s a collective denial where everyone has to go round telling each other they’re in the best city in the world, when you can’t even comfortably spend time outdoors for most months of the year.

When a Dog is used to eat the hen eggs in a farm....it Will ever do so.....same for Governments when start to collect TAXES , is Never Bad thing living vith another people work!!

Michel, is there any info about Taxation of UAE Offshore firms? Do Offshore firms come under the new Tax ambit?

@OffshoreCitizen

Жыл бұрын

As discussed in the video there's management and control rules supposedly coming in

@qwertydebutant5453

9 ай бұрын

​@@OffshoreCitizen Hi Michael, If we're already nomads and all income is from capital gains, would you lean towards UAE Free zone (or even offshore), rather than keeping investment account at personal level? ... I'd love to see more videos from you about CGT (or lack thereof:) for those who invest in financial assets. Best regards 🙏 much love

They should become tax free again. It is good for Dubai, they attract more people and investment.

9%? GMCT is 15% - what about the difference?

@OffshoreCitizen

Жыл бұрын

Global minimum tax only applies to companies over $750 million

This is all about mainland companies? Or this applies to free zone companies?

@OffshoreCitizen

Жыл бұрын

Applies to all UAE companies

@martinsjogren4366

Жыл бұрын

@@OffshoreCitizen Yes, it applies but then it seems freezone companies are exempt from the tax (but not the reporting requirement) if they have substance in the UAE , and derive profit from "qualified income" meaning transactions with foreign entities or other freezone companies. Full details still to be ironed out.

Do you see personal taxation changing as well long-term? For example, just using foreign company + personal no tax?

@ahmadsollam3307

Жыл бұрын

as a uae resident permanent establishment rules apply to you regardless in which foreign country your company is formed. I.E the 9% tax applies to you as well. i'm not a tax professional so kindly consult with a tax specialist but that's what i know.

@OffshoreCitizen

Жыл бұрын

I doubt personal taxes will change soon. Foreign company depends on operational details.

@ahmadsollam3307

Жыл бұрын

@@OffshoreCitizen say for example an UAE citizen forms a USA LLC (non-resident alient LLC) pass-through taxation.. Used to sell products (digital products; ebooks, courses) to customers OUTSIDE UAE exclusively. Isn't the UAE resident who operates that U.S LLC subject to (UAE CIT 9% tax) as he/she creates a permanent establishment as CEO in UAE? that's what I meant, creating a permanent establishment as CEO of a foreign company while residing in UAE.

@davelawson2564

Жыл бұрын

@@ahmadsollam3307 since income earned from outside. hence zero tax in UAE FTZ

I am not sure this is relevant - let me get this straight: It is relevant if you found a company and this company does active business in the UAE. If that company is a SFO (Single Family Office), though, handling your personal investments (WITHOUT taking ownership) then this is a small business that makes a profit - but you keep the majority OUTSIDE of the business - in example the capital gains. I am not sure how many people moving to the UAE in the high-net-worth individual are essentially going to move their business to the UAE (or start a new business here).

@alexbloomberg4221

Жыл бұрын

I didn't understand anything.

@OffshoreCitizen

Жыл бұрын

To the extent you're making personal investment income you won't be taxable

What about Saudi Arabia? Neom looks like a good place to live.

@OffshoreCitizen

Жыл бұрын

Time will tell

@ranjithpowell6791

Жыл бұрын

Agree. Saudi Arabia, especially Neom I so much better. Not just the tax system but also the natural beauty in Neom. You really can ski and kitesurf and scuba dive in the same day!

💙

No longer a tax haven

@OffshoreCitizen

Жыл бұрын

What do you think are good alternatives?

@darrinelford1473

Жыл бұрын

@@OffshoreCitizen Qatar, KSA UK non Dom, some caaribean islands

@circuitbreaker8314

11 ай бұрын

Qatar has not a very good name foreign what do you think

Ah yes now let's run to A j m a n

What about the free zone company? Will be all some changes?

@OffshoreCitizen

Жыл бұрын

Free zone companies will also be taxable at 9%, however there may be some exemptions. We’re still waiting for the government to disclose the details

@ivan_votipka

Жыл бұрын

@@OffshoreCitizen got it! Thank you

@shawnip6369

Жыл бұрын

Oh. I though freezones are only tax on the part of the business that are conducted locally.

@oa6551

Жыл бұрын

Im confused 0 apparently its not as long as you do business outside of the UAE...

@ivan_votipka

Жыл бұрын

@@shawnip6369 me too, since I will be working with clients who are out of UAE.

No big deal

Still no place like Dubai 😢

Never liked UAE

El Salvador for crypto enthusiast...!!!

@OffshoreCitizen

Жыл бұрын

What do you think makes El Salvador attractive?

@shaned7545

Жыл бұрын

@@OffshoreCitizen For crypto traders, I've read somewhere it's ZERO taxes.

@nobobonobo

Жыл бұрын

Isn't El Salvador infamous for gang activity and cartel violence?

what about the Saudis... I think they will copy dubai approach and will take some part of their business

@OffshoreCitizen

Жыл бұрын

They are certainly trying, same with Qatar

@mariogross

Жыл бұрын

@@OffshoreCitizen best for us... we go were we are treated best :)

Make vids with Bahrain, I understand their politics are better than UAE/Dubai.

@OffshoreCitizen

Жыл бұрын

What do you think makes Bahrain attractive (besides the taxes)? How do you think it compares lifestyle wise to Dubai?

@danbarton7731

Жыл бұрын

@@OffshoreCitizen IT's the freest country in the Persian Gulf. Alcohol, prostitution and others are legal there, but in Dubai, if you keep your gf hand or kiss her on the street you can be fined or sent to jail for that, that's the law in Dubai.

@kooldude123

Жыл бұрын

@@OffshoreCitizen Even more open than Dubai but with much less to do.

substance: good quality of life, costs a bit more but overall still super attractive. title: its getting worse! Run for your life! Lesson: you're a hack

Taxes were increased for corporations: 9% in corps who makes net profit above AED 375k P/A. Nothing else. Don't lie.

No sound

@RomilCPatel

Жыл бұрын

I heard it on my side

Please stop doing mouth open thumbnails, it looks ridiculous

@ehsanmafi6546

Жыл бұрын

Please stop telling other people how to run their channel, you’re being ridiculous.

@22utoo

Жыл бұрын

@@ehsanmafi6546Viewer feedback needs to be voiced. If you had mayo on the side of your mouth would you prefer someone tell you or let you walk around like that? Please mind you’re own business, he doesn’t need your defence

@ehsanmafi6546

Жыл бұрын

@@22utoo there’s feedback, and then there’s what you did. Please learn how to give constructive feedback, or mind your own business.

@22utoo

Жыл бұрын

@@ehsanmafi6546believe me I could have made it sound worse. ​Michael is a good guy but his Armani shirts with huge logos and messed up hair and mouth open thumbnails are absolutely ridiculous and just doesn’t align with the nature of the content or maturity of it. I don’t expect you to understand pea brain

@JimPastirmatzis

Жыл бұрын

Do you know what works and what doesn't work with KZread? Do you run some big KZread channels yourself? What do you know about performance of thumbnails besides your own personal irritation that he has his mouth open on a thumbnail?