Tax is a sensitive issue for expats and what they pay depends on the country they are deemed as main residence. The main point to remember is that tax is not a one-size fits all option for expats. Every country has a different approach to income Tax and tax on gains.
Expats with cash, investments and property in more than one country should have a local adviser in each one to make sure they are keeping up with the latest changes.
However, Affinitas can provide Expert advice on Tax Minimization across multiple jurisdictions. We can apply the most updated fiscal legislation available and we will optimize your cost base to meet your objectives. Our professional advisors know how to leverage the latest legislation and double taxation treaties, thereby customizing plans that settle for nothing less than the lowest tax rates possible. Cross-border transactions and international operations require the highest level of expert tax advice, which we ably provide.
Affinitas for Optimal Tax Solutions & Maximum Confidentiality
The two important aspects of tax are residence and domicile. Country of residence will affect where and how an expat pays income tax and capital gains tax. Domicile comes into play over estate planning – the laws that dictate how someone’s wealth is divided when they die. Although an expat can change their residence, domicile is determined by rules relating to their nationality and place of birth.
Tax avoidance? Most countries allow taxpayers to arrange their financial affairs so they pay the least tax after applying reliefs and allowances. This type of tax avoidance is not illegal and the right of taxpayers the world over. The condition is that taxpayers conduct their finances in an open and honest manner.
A UAE Tax Residence Certificate (TRC) Is a useful tool to realize the benefits of Double Taxation avoidance agreements (“DTT”) between the UAE and specified foreign jurisdictions. We handle the process seamlessly from arranging Residency Visas to reception of TRC by the individuals and corporations.
Tax registration No (TRN) Is a mandatory requirement by the Federal Tax Authority for all companies with a turnover of AED 375,000 (approx. 100,000 USD) annually or more. There’s also an option to register voluntarily and obtain the number ahead of actually exceeding the threshold. We arrange VAT preparation and VAT returns submission to the FTA.
Inheritance tax is a wealth tax levied on the estate of a deceased person and some gifts they made during the seven years before their death.
Countries treat the way they handle dividing the estate of a deceased person according to their own laws.
For British expats who now live in Europe or the Middle East, the way tax authorities treat inheritance is vastly different.
The popular expat destinations of France and Spain have laws dating back to the time of Napoleon for dealing with estates, while places like the United Arab Emirates and other Muslim states rely on Sharia’h law.
Dubai has new estate planning laws that allow expats to deposit a British Will in the country to put their assets outside the reach of Sharia’h law.
Affinitas provides fully comprehensive Tax Advice in UAE package.