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Living in Dubai , company in Canada
We dedicate this article to our readers who already live in Dubai or are thinking of emigrating to Dubai or the United Arab Emirates. In the last three years, nowhere has attracted more millionaires and high achievers than the United Arab Emirates. In addition to the first-class infrastructure and tax appeal, security naturally also plays a major role.
Tax-free despite new tax laws
Since the 1 June 2023 however, some things have changed for business owners in the UAE. Since then, they have been obliged to submit a tax return once a year and to keep records of their turnover accordingly.
Even if 9% Corporate income tax While the tax rates in Dubai and the UAE are still low by international standards, it is a burden for entrepreneurs who previously did not have to deal with corporate tax. In addition, companies in Dubai and the UAE are now subject to stricter accounting & reporting requirements to ensure that corporate tax is properly levied, resulting in higher administrative burdens and additional costs.
Canada as an attractive solution
For entrepreneurs living in Dubai or the UAE who operate internationally, setting up a company in Canada can be very attractive not only from a tax but also from an administrative point of view.
The decisive advantage: Canada levies tax on the profits of companies whose shareholders live outside Canada and do not carry out any economic activity in Canada, No taxes. In addition, there is no obligation to keep accounts if no income is generated in Canada. It is also possible to open accounts with European online banks with a company in Canada, which makes payment transactions with customers from all over the world much easier and reduces transaction costs.
The advantages at a glance
- 0% Taxes
If neither the company nor one of the partners has a permanent establishment in Canada or is resident in Canada, no tax is payable on the income.
- No accounting
As long as the Canadian company does not conduct business within Canada, there is no obligation to keep accounts or file tax returns.
- Stability and reputation
Canada is politically and economically stable with an excellent international reputation. Invoices are easily recognised by tax authorities worldwide.
- Legal security
The Canadian legal and tax system is transparent and reliable. High planning security and protection against unforeseen changes.
- The perfect combination
The combination of a tax-free life in Dubai and a company in Canada, which benefits from the tax regulations there, offers an ideal solution for entrepreneurs & self-employed persons who are active worldwide and want to minimise their bureaucratic effort and their tax burden.
By incorporating a Canadian company, entrepreneurs based in Dubai and the UAE can enjoy the benefits of both worlds: a luxurious life in one of the world's most vibrant cities and a tax-optimised structure by incorporating a company in Canada.
Conclusion
For entrepreneurs and self-employed persons who are based in Dubai or the United Arab Emirates and operate internationally, setting up a company in Canada can be a very attractive solution.
Canada offers tax advantages and simplifications in terms of accounting and administrative burdens, as well as better banking options, while Dubai and the UAE continue to maintain a personal tax exemption as a place of residence.
So if you set up the right international structures, you can get the best of both worlds and significantly reduce your tax burden and bureaucracy.
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