Hello,
I am interested in selling on Amazon FBA in the UK, but I am currently a resident of the UAE. What would be the best business structure for me to minimize or avoid taxes, both in the UK and the UAE?
You can create an account under a UAE free zone company, and Amazon will take care of all the European VAT requirements for you. There’s nothing extra you need to handle on your end.
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But won’t the UAE company be taxed at 9%? Isn’t there a better way? Maybe set up a UK LLC, which, if owned by a non-resident, wouldn’t pay any taxes. Then, when the income comes to me personally, I wouldn’t be taxed as an individual in the UAE, right?
Similar to a US LLC, where it’s a pass-through vehicle to the person? Or perhaps establish a company in a country where corporate tax is zero, then transfer the money to myself from there?
I’m not sure, just thinking out loud, because the UAE company would attract tax, or if it’s foreign income, maybe no tax?
Not true. In the UK, with an UK company you pay the tax on all your global income. There is no exception for non-residents. In the UAE, you only pay the 9% tax if you cross the income cap.
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Ok, but how about I make company in some other country with lower tax than 9% ? And that company will own the Amazon store
Isn’t that better than going through UAE company and paying 9% ?