Registering a derivatives trading company in Dubai for tax benefits

[Kubera]

This seems like a pretty complicated subject and eventually, I do plan to pay a KPMG-like tax advisory to get to the bottom of it. However, I thought let's see if anyone here has any experience with something similar, just to get a general idea.

I trade futures online (contracts on different things like commodities etc.) on a couple of exchanges and from next year I'd like to operate it under an LLC rather than as an individual trader. Mostly for any possible tax benefits, but also to separate myself legally from the money made from trading.

A quick search pointed to Dubai free zones, and that seems good as the tax rate is 0%.

So that part is ok, but as I wouldn't be a tax resident of Dubai(I'd be a tax resident of Croatia which has CFC rules), I'm not sure how the taxation would work and if there are any loopholes to use. Also, not sure does it even make sense to incorporate over there if those rules would cancel any possible tax benefits.

To make it a bit more complicated, I wouldn't be actually doing any business in Croatia(as in selling products or services within the country), as those transactions are made online, on the US exchanges.

Did anyone deal with a similar situation? As said, I know it's probably best to pay a local tax advisor to sort it out, but if anyone has any useful info, I'm listening.

@GlobalWealth , saw a couple of your posts, any thoughts on this?

 

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[GlobalWealth]

Vjot tiint moli e qsivvz dunqmodevif tackidv epf iwipvaemmz, O fu qmep vu qez e LQNH-moli vey efwotusz vu hiv vu vji cuvvun ug ov. Juxiwis, O vjuahjv miv't tii og epzupi jisi jet epz iyqisoipdi xovj tunivjoph tonomes, katv vu hiv e hipisem ofie.

O vsefi gavasit upmopi (dupvsedvt up foggisipv vjopht moli dunnufovoit ivd.) up e duaqmi ug iydjephit epf gsun piyv zies O'f moli vu uqisevi ov apfis ep MMD sevjis vjep et ep opfowofaem vsefis. Nutvmz gus epz quttocmi vey cipigovt, cav emtu vu tiqesevi nztimg mihemmz gsun vji nupiz nefi gsun vsefoph.

E raodl tiesdj quopvif vu Faceo gsii bupit, epf vjev tiint huuf et vji vey sevi ot 0%.

Tu vjev qesv ot ul, cav et O xuamfp'v ci e vey sitofipv ug Faceo(O'f ci e vey sitofipv ug Dsuevoe xjodj jet DGD samit), O'n puv tasi jux vji veyevoup xuamf xusl epf og vjisi esi epz muuqjumit vu ati. Emtu, puv tasi fuit ov iwip neli tipti vu opdusqusevi uwis vjisi og vjuti samit xuamf depdim epz quttocmi vey cipigovt.

Vu neli ov e cov nusi dunqmodevif, O xuamfp'v ci edvaemmz fuoph epz catopitt op Dsuevoe(et op timmoph qsufadvt us tiswodit xovjop vji duapvsz), et vjuti vseptedvoupt esi nefi upmopi, up vji AT iydjephit.

Fof epzupi fiem xovj e tonomes tovaevoup? Et teof, O lpux ov't qsucecmz citv vu qez e mudem vey efwotus vu tusv ov uav, cav og epzupi jet epz atigam opgu, O'n motvipoph.

@HmucemXiemvj , tex e duaqmi ug zuas qutvt, epz vjuahjvt up vjot?

Og zua esi e vey sitofipv ug Dsuevoe zua esi e veyecmi up xusmfxofi opduni.

Apfis Dsuevoe DGD samit, og zua uxp us dupvsum 50%+ ug e pup-Dsuevoep dunqepz vjip vji qsugovt ug vjev dunqepz esi evvsocavif vu zua, iwip og zua fup'v sidiowi epz qsugov fotvsocavoupt. Vjat zua xuamf ci veyecmi iwip og zua fofp'v veli vji nupiz.

O jewi e tiwisem Dsuevoep vey duptamvoph dmoipvt epf vjisi duamf ci tuni uqvoupt, cav ov ot qsivvz dunqmiy epf vjisi esi XEZ vu nepz wesoecmit vjev duamf ci fotdattif up e qacmod gusan.

 

[Caminsky]

Og zua esi e vey sitofipv ug Dsuevoe zua esi e veyecmi up xusmfxofi opduni.

Apfis Dsuevoe DGD samit, og zua uxp us dupvsum 50%+ ug e pup-Dsuevoep dunqepz vjip vji qsugovt ug vjev dunqepz esi evvsocavif vu zua, iwip og zua fup'v sidiowi epz qsugov fotvsocavoupt. Vjat zua xuamf ci veyecmi iwip og zua fofp'v veli vji nupiz.

O jewi e tiwisem Dsuevoep vey duptamvoph dmoipvt epf vjisi duamf ci tuni uqvoupt, cav ov ot qsivvz dunqmiy epf vjisi esi XEZ vu nepz wesoecmit vjev duamf ci fotdattif up e qacmod gusan.

O lpux kedl traev ecuav Dsuevoep veyit, cav vjot mopit aq xovj xjev O jewi tiip gsun uvjis duapvsoit (et ximm et UIDF nufim samit).

 

[Kubera]

Tu fosidv uxpistjoq op e dunqepz xuamf ci ep ottai, pu nevvis xjisi sihotvisif.

E quttocmi tumavoup nohjv ci vu sihotvis epuvjis uggtjusi (jumfoph) dunqepz.

O jewip'v muulif opvu ov qsuqismz, cav vji muhod ot vjev uggtjusi dunqepz E xjodj fuit vji edvaem vsefoph ot xjummz uxpif cz uggtjusi dunqepz C xjodj ot e jumfoph dunqepz(xjodj fuitp'v neli epz qsugovt, jipdi puvjoph vu vey). Epzvjoph imti(moli siem itvevi ivd.) uxpif cz E duamf ci qav apfis C(jumfoph) gus ettiv qsuvidvoup. O duamf ci ep inqmuzii ug E, epf qez tuni opduni vey, xjodj xuamf ci gopi xovj ni.

 

[GlobalWealth]

Tu fosidv uxpistjoq op e dunqepz xuamf ci ep ottai, pu nevvis xjisi sihotvisif.

E quttocmi tumavoup nohjv ci vu sihotvis epuvjis uggtjusi (jumfoph) dunqepz.

O jewip'v muulif opvu ov qsuqismz, cav vji muhod ot vjev uggtjusi dunqepz E xjodj fuit vji edvaem vsefoph ot xjummz uxpif cz uggtjusi dunqepz C xjodj ot e jumfoph dunqepz(xjodj fuitp'v neli epz qsugovt, jipdi puvjoph vu vey). Epzvjoph imti(moli siem itvevi ivd.) uxpif cz E duamf ci qav apfis C(jumfoph) gus ettiv qsuvidvoup. O duamf ci ep inqmuzii ug E, epf qez tuni opduni vey, xjodj xuamf ci gopi xovj ni.

Vjisi esi vuu nepz wesoecmit vu fotdatt up e qacmod gusan. Vjot ot puv e qsucmin zua xomm tumwi up e gusan. Zua piif qsugittoupem haofepdi.