Dubai tax: truth vs. fiction?

Question

@Dana K

"If you decide to move here, make sure you make heaps more then you do now."

Is this because the cost of living is higher? Or is it to compensate for the lower 'niceness' of Dubai by earning more?

Answer 1

No taxes in Dubai

Answer 2

Being an American is great, but you do have to pay of it.  That includes if you live and work in Dubai.  It's about the only country that I know of that make their citizens pay even though they are gone for years.  If you decide to move here, make sure you make heaps more then you do now.  I have many American friends and they say their is no way around it.  All the rest of us enjoy a tax free life!!  Good Luck!!

Answer 3

If you're an American, you have to pay your income taxes sooner or later no matter where you earn your money. There is an exemption on the first $85K - but that's only on "earned income" (i.e. salaries - so if you make it from a business or something, you have to pay in full). You'll get conflicting answers because no other country has to do this. Also, most American working overseas are exempt for most or all of their salaries.

So, in conclusion, you must pay income tax on ALL income earned overseas unless it's in salary in which case you are exempt up to 85K. You can deduct taxes paid in the country of residence (most countries have tax treaty with u.s.), but in Dubai, that's mostly nothing so nothing to deduct.

As far as not having to pay until it's repatriated, I'm sure there are lots of loopholes to be taken advantage of. But in the end, if it ends up in your pocket, you gotta pay.