I learnt today that a business in UAE is charged 9% corporation tax on profits annually
The same tax in Australia is 30%
So
If youāre setting up a digital business, why would you do it as an Australian company?
You could own and operate out of Dubai, and any income to yourself would be declared as tax paying Australian resident
Really gets the brain firing
And I see a global network of entities, banks, residencies etc, that you might build alongside it
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Agreed š«”
Dubai has an awful lot going for it, including tax and Bitcoin (crypto) friendliness.
My concern, however, is it is an absolute Monarchist state, meaning everybody is subject to the will of the King.
For the moment that King is benevolent.
Self sovereignty appears to be at odds, in theory at least, to living in a Monarchy.
Agree. The top dog could switch you off whenever they choose
But what are the chances of that? Actual probability is very low (for now) from what Iāve read
Whilst youāre locking in a certain 20% tax on profits annually in addition if you setup in Australia
Going to get bespoke advice. As thereās always ways of slicing the onion
But itās certainly true āgo where youāre treated bestā, but in this case your business can go, whilst you sit somewhere else
Iāve not got any interest reside in Dubai eg
But totally open to operating a business from there
Will see if any fine print advent residency status etc
It certainly is a great place to do business and agreed, the regime is pretty unlikely to change while the system is working.
Good luck š
Cook Island Trusts are something worth looking into, along with a family office if you are looking to secure your wealth for the next generation.
How is democracy better? It's a bunch of idiots making decisions on your behalf, but in reality they're all just puppets who do as their told by their overlords.
Turns out, unsurprisingly, the ATO are all over this concept. Any entities overseas that you control, the business profits are subject to Aussie tax
Grok:
As an Australian tax resident (whether an individual, company, trust, or other entity), you are generally taxed on your worldwide income. This means all income you earn or derive from sources anywhere in the world is included in your assessable income for Australian tax purposes, regardless of where it originates or whether itās remitted to Australia. This includes employment income, business profits, investment returns, capital gains, and other sources. Foreign income is converted to Australian dollars using applicable exchange rates, and you must report it in your annual tax return.
However, when it comes to income from a foreign company that you own or control abroad, special anti-avoidance rules come into play to prevent deferral of tax by parking profits offshore. These are primarily the Controlled Foreign Company (CFC) rules, which attribute (or āimputeā) certain income from the foreign company back to you as if it were your own, even if the company hasnāt distributed the profits to you. This ensures that passive or low-taxed income isnāt sheltered in foreign entities you control. The rules apply to both individual residents and Australian resident companies that hold interests in foreign entities.
Is it possible to set up a company in Dubai remotely? The little bit of research I've done shows you need to be "based" there somehow.
You could also operate out of Prospera:
https://intercom.help/prospera-c3520d800849/en/articles/8258630-overview-of-taxes
