Questions & Answers
Paying corporation tax when the company provides only remote services
My company is in Gibraltar. I also have a company in Ajman free zone. My Ajman company will provide remote services such as accountancy, IT support, and sales for the Gibraltar company.
There is no transport or handling of goods, and the Ajman company will only provide services. The staff salaries will be about 400,000 AED. My staff will be based in India. My Ajman company will be basically used to pay salaries to staff in India.
Will my Ajman company have to pay corporation tax? (because it is running and managing the company in Gibraltar)
Do I have to register for VAT? Do I have to keep accounts? What do I need to register as a service?
As per your query, the main company is in Gibraltar and the Ajman free zone only has services as its activity.
In this scenario, you should register for VAT. VAT is an internal tax structure only applicable for UAE as per the UAE Federal Law.
You should also maintain accordingly the books of account and file the VAT returns. Also, you can proceed with a tax domicile certificate and submit it to the Gibraltar tax authority for any exemption.
You need to register for VAT and get the TRN no. for your business.
Please contact us via phone or email for further consultation.
Dear Client,
Good day!
Dubai is a tax-free zone, of course, you can use the services of the Dubai Company. However, if it is an international service applied, then only you have to pay tax.
If there is invoicing and receipt of the invoice, and if there is an income or receipt of income then you have to pay tax.
But if it is just a service providing company and your expenses are only expenses, I don't think right is applicable to this.
However, please give us all documents in written so that we will review it and will give you advice and confirmation of our advice.
For further assistance, please feel free to contact us at our number or send an email.
Thank you.
