Have you ever thought over the fact, that more than a half of time which you devote to your work, you spend on taxes and fees payments? It sounds strange, but if examine the factual situation thoroughly and put together all the payments (including VAT, income tax, capital tax etc.), the amount will be about fifty percent or even more. It means that, in fact, at least the first six months of a year you work to pay all the taxes and governmental charges. And only in the second half of a year, when the freedom day comes, you start working for yourself.
In other words, the freedom day is a date of tax payments cessation and the income you get becomes completely yours.
The date of this freedom day differs significantly from country to country. In most developed countries, this day does not come earlier than the middle of the year or even later.
When you retire, having paid with your earned revenues beforehand, you are still not free from the tax payments. You pay them from your interest income on deposits or dividends on securities, income from rental income, etc.
We all realize the importance and necessity of a tax payment as well as the unconditional necessity to follow the laws. However, this situation can be changed in case if all necessary conditions are satisfied.
For example, the UAE, being the comfortable and safe country for people’s residence, gives a completely legal opportunity for your freedom day to come at the beginning of a year. Personal income of the UAE residents is completely exempted from taxation. Besides, you can possess an absolutely legitimate and provable status of a tax resident. There is no doubt that it requires a special approach and the fulfillment of all necessary requirements.
Contact us on all the issues on how to obtain a status of a tax resident in UAE and make the beginning of the year your freedom day.
Tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarized; an individual is strictly advised to seek personalized advice.